ESAs Announce Outcome of Review of Key Information Document for PRIIPs
ESAs informed EC, via a letter, that the draft regulatory technical standards that amend the technical rules on key information document (KID) for packaged retail and insurance-based investment products (PRIIPs) were not adopted by all three ESA Boards. Therefore, ESAs are not in a position to formally submit the technical standards to EC. The letter details the outcome of a review conducted by ESAs on KID for PRIIPs. The review intended to address the regulatory issues that have been identified since the implementation of the KID—particularly regarding the information on performance and costs—and to allow the appropriate application of the KID by undertakings for collective investment in transferable securities (UCITS).
As part of this review, a draft final report had been submitted to the Boards of Supervisors of the three ESAs in June, for their approval. The report contained balanced and proportionate final proposals that would allow ESAs to meet their key policy objectives, while remaining in line with the PRIIPs level 1 framework (Regulation 1286/2014). The draft technical standards were adopted at the EBA and ESMA Boards on the basis of qualified majority voting. At the EIOPA Board, the standards did not receive the support of a qualified majority, although a large number of members agreed with the draft technical standards. The EIOPA Board members that did not support the technical standards generally argued that a partial revision of the PRIIPs Regulation is not appropriate at this stage, prior to a comprehensive review of Regulation 1286/2014 as envisaged in Article 33 of the Regulation. A number of Board members also indicated that, for investment funds, they would prefer the past performance graph from the UCITS key investor information document to be included in the PRIIPs KID, rather than in a separate publication. Given that the draft technical standards were not adopted by the three ESA Boards, ESAs are not in a position to formally submit the technical standards to EC. For transparency, the draft final report has been included as an Annex to the letter.
Keywords: Europe, EU, Banking, Insurance, Securities, KID, PRIIPs, UCITS, Regulatory Technical Standards, EC, ESAs
FINMA Approves Merger of Credit Suisse and UBS
The Swiss Financial Market Supervisory Authority (FINMA) has approved the takeover of Credit Suisse by UBS.
BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks
The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.
OSFI Finalizes on Climate Risk Guideline, Issues Other Updates
The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.
APRA Assesses Macro-Prudential Policy Settings, Issues Other Updates
The Australian Prudential Regulation Authority (APRA) published an information paper that assesses its macro-prudential policy settings aimed at promoting stability at a systemic level.
BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending
BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.
HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks
The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.
MFSA Sets Out Supervisory Priorities, Issues Reporting Updates
The Malta Financial Services Authority (MFSA) outlined its supervisory priorities for 2023
German Regulators Issue Multiple Reporting Updates for Banks
Deutsche Bundesbank published the nationally deactivated validation rules for the German Commercial Code (HGB) users on the taxonomy 3.2, which became valid from December 31, 2022
BCBS Report Examines Impact of Basel III Framework for Banks
The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.
PRA Consults on Prudential Rules for "Simpler-Regime" Firms
Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.