FCA Responds to Comments on Its Call for Input on PRIIPs Regulation
FCA published a feedback statement in response to its Call for Input on the Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation. FCA had sought views and evidence on market participants’ initial experiences of the requirements introduced by the PRIIPs Regulation (EU Regulation No 1286/2014) and the related PRIIPs regulatory technical standards (Commission Delegated Regulation (EU) 2017/653), together with the PRIIPs legislation. The PRIIPs legislation took effect in January 2018.
FCA received 103 responses from firms, trade bodies, and consumer organizations that are producing, advising on, or distributing PRIIPs and preparing and providing Key Information Documents (KIDs). The published feedback statement summarizes responses received, sets out FCA response to the feedback received, and outlines options to address areas of concern. This statement is of interest to issuers of securities that are classed as PRIIPs; life companies; discretionary investment management firms; firms providing services in relation to insurance-based investments; fund managers; wealth managers; stockbrokers and other firms that provide advice to retail clients on funds, structured product;s and derivatives; financial advisers; and firms operating retail distribution platforms.
The concerns raised by respondents about uncertainty of scope of products needing to comply with PRIIPs and the unintended effects of compliance requirements are particularly serious and may risk causing consumer harm, if not addressed. In the areas mentioned by respondents, FCA is seeking and encouraging swift and effective action from EU institutions. FCA will consider the extent to which domestic interpretive guidance could mitigate these issues. This work will take into account the UK’s future relationship with the EU.
As a next step, FCA will continue to work closely with ESAs and EC through 2019, subject to the nature of the UK’s relationship with the EU. FCA will also continue to monitor the impact of the PRIIPs regime and investigate the scale of potential consumer harm in this area. FCA will work with trade bodies, consumer groups, and firms in the industry to ensure that PRIIPs delivers the intended outcomes for consumers. The full review of the PRIIPs Regulation is anticipated to be completed by the end of 2019.
Related Links
Keywords: Europe, EU, UK, Insurance, Feedback Statement, PRIIPs Regulation, KID, Call for Input, FCA
Previous Article
DNB Publishes Banking and Insurance Newsletters for February 2019Related Articles
HKMA Enhances Loan Guarantee Scheme to Alleviate Pressure on SMEs
HKMA announced that enhancements will be made to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS) and the application period will be extended to December 31, 2021.
BoE Sets Out Plan to Transform Data Collection from Financial Sector
BoE has set out a three-phased plan to transform data collection from the UK financial sector over the next decade.
BIS Issues Updates on Technology Initiatives on Cross-Border Payments
BIS recently made a couple of announcements with respect to the planned and ongoing work in the area of financial technology.
ESRB Updates List of Macro-Prudential Measures in February 2021
ESRB updated the list of national macro-prudential measures applied by each member state in the European Economic Area.
BoE Survey Shows Positive COVID Impact on Outsourced Banking Services
BoE has set out results of a survey on the impact of COVID-19 events on the use of machine learning and data science.
ECB Issues Opinion on Proposal to Regulate Crypto-Asset Markets in EU
In response to a request from the European Council and Parliament, ECB published an opinion on the proposed regulation on markets in crypto-assets.
APRA Announces Aggregate Committed Liquidity Facility for Banks
APRA announced the updated aggregate amounts for the 2021 Committed Liquidity Facility (CLF) established between the Reserve Bank of Australia (RBA) and certain locally incorporated authorized deposit-taking institutions that are subject to the Liquidity Coverage Ratio (LCR).
ECB and UK Authorities Agree on Post-Brexit Supervisory Cooperation
ECB published supervisory Memorandums of Understanding (MoUs) with UK as well as other European and non-European authorities.
EIOPA Outlines Strategic Supervisory Priorities for Insurance Sector
EIOPA identified business model sustainability and adequate product design as the two EU-wide strategic supervisory priorities.
US Agencies to Revise FFIEC 031, FFIEC 041, and FFIEC 051 Reports
After considering comments received on the November 2020 proposal, US Agencies (FDIC, FED and OCC) are proceeding with the proposed revisions to the reporting forms and instructions for Call Reports FFIEC 031, FFIEC 041, and FFIEC 051.