The European Supervisory Authorities (ESAs) have published their response to the European Commission on the amendments the Commission proposes to make to the draft regulatory technical standards (RTS) on key information documents (KIDs) for packaged retail and insurance-based investment products (PRIIPS).
The European Commission endorsed the draft RTS on 30 June 2016 but during the following scrutiny period, while the Council raised no objections, on 14 September 2016 the European Parliament rejected them. In order to address the concerns expressed by the European Parliament, the Commission set out its intention to amend the RTS. In accordance with the procedure in the ESAs’ founding Regulations, the ESAs were informed about the Commission’s intention to amend the draft RTS and discussed the amendments to the draft RTS received from the European Commission to present an Opinion to the three Boards of Supervisors covering all of the areas addressed by the Commission’s letter and the amendments in the RTS.
The Opinion was adopted at the EBA and ESMA Boards on the basis of qualified majority voting. However, it did not receive the support of a qualified majority of the EIOPA Board as there were differing views expressed in particular concerning the treatment of multi-option products, the criteria to determine whether a comprehension alert should be included in a KID, and the provisions in the RTS on the credit risk mitigation factors for insurers. As a result, the three ESAs are not in a position to provide an agreed opinion on the amended draft RTS.
More on the ESMA website: European Supervisory Authorities respond to European Commission on amendments to PRIIPs rules