On October 27, Guillaume Prache, EuroFinUse’s Managing Director, was quoted in the Financial Times on the European Parliament’s vote on the KID Regulation proposal last week. The Economic and Monetary Affairs Committee approved the KID rules by a large majority but the negotiations with EU member states will not open immediately since the new rules will need to be put to a plenary vote before negotiations begin with the Council. The new amendments, proposed by MEP Sharon Bowles, include the introduction of a complexity label for products which the manufacturer deems complex and possibly not suitable for retail investors as well as a fund calculator to help investors estimate the value of funds and the impact of any fees and expenses on the investment, to be developed by ESMA, the European Securities and Markets Authority. This implies further delay to the implementation of the KID legislation and can harm small investors.
Mr. Prache clearly stated that this is a very serious blow for investors, pointing out that “a key initiative to restore European citizens’ confidence in financial markets is now at risk”.
EuroFinUse believes the potential fallout caused by this delay to be very serious indeed.
Read the FT article here.