AIC welcomes delay in PRIIPs regulation implementation
The Association of Investment Companies (AIC) welcomed the delay to the EU’s Packaged Retail and Insurance-based Investment Products (PRIIPs) regulation. The regulation was due to be implemented on 1 January 2017. PRIIPs will now be delayed until 1 January 2018.
Ian Sayers, Chief Executive of the Association of Investment Companies said: “The delay to the implementation of PRIIPs is a victory for common sense. It’s far better for the EU to take some extra time to get the detailed rules right on KIDs rather than sticking rigidly to the original timetable. We hope that the EU will use this extra time to consider and address some of the concerns that have been raised.”
PRIIPs will require a Key Information Document (KID) to be provided to consumers before they buy an investment product. The AIC called for a delay in January 2016 and reiterated this following the rejection of the PRIIPs Level 2 requirements by the Economic and Monetary Affairs Committee of the European Parliament at the beginning of September. The MEPs were concerned that the investment disclosures could mislead retail investors.