The Commission proposed a one-year extension to the date of the application of the Regulation on Key Information Documents (KIDs) for Packaged Retail and Insurance-based Investment Products (PRIIPs), which was previously set for 31 December 2016. This extension was predictable after the European Parliament rejected the Regulatory Technical Standards (RTS) underpinning the format and methodology used to compile the KID last September.
The European Supervisory Authorities have 6 weeks to resubmit revised RTS to the Commission targeting certain areas including multi-option products, performance scenarios, comprehension alert and presentation of insurance related costs. Once approval from the Commission is obtained, the RTS will then be subject to scrutiny by the European Parliament and Council. The revised PRIIPs framework is expected to be firmed up during the first half of 2017 and apply as of 1 January 2018.
The Commission’s proposal for a regulation amending the PRIPPs Regulation to reflect the deferral can be read here.