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
EBA Updates List of Validation Rules for Reporting by Banks
EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.
EBA Responds to EC Call for Advice to Strengthen AML/CFT Framework
EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).
NGFS Advocates Environmental Risk Analysis for Financial Sector
NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.
MAS Issues Guidelines to Promote Senior Management Accountability
MAS published the guidelines on individual accountability and conduct at financial institutions.
APRA Formalizes Capital Treatment and Reporting of COVID-19 Loans
APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.
SRB Chair Discusses Path to Harmonized Liquidation Regime for Banks
SRB published two articles, with one article discussing the framework in place to safeguard financial stability amid crisis and the other article outlining the path to a harmonized and predictable liquidation regime.
FSB Workshop Discusses Preliminary Findings of Too-Big-To-Fail Reforms
FSB hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.
ECB Updates List of Supervised Entities in EU in September 2020
ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.
OSFI Identifies Focus Areas to Strengthen Third-Party Risk Management
OSFI published the key findings of a study on third-party risk management.
FSB Extends Implementation Timeline for Framework on SFTs
FSB is extending the implementation timeline, by one year, for the minimum haircut standards for non-centrally cleared securities financing transactions or SFTs.
