PRIIPS Delay but what is PRIIPS

PRIIPS Delay but what is PRIIPS.

Firstly, what is PRIIPS?

Packaged Retail and Insurance Based Investment Products (PRIIPS) are new rules for consumer-friendly information on retail investment products.  In short, key facts information documents for investment, pension and insurance based investment products such as Insurance Bonds available to the consumer rather than institutional investors and professional investors.  A standard across Europe where information, charges, objectives, risk profile and other important facts are issued in factsheets that are in plain language rather than jargon and small print.

The UK has, for 30 years+ offered versions of PRIIPS via the Buyers Guide way back in the 80’s and 90’s through to Key Facts documents and Key Information Documents (KIDs).  So, whilst the new rules will present uniformity across Europe, it is something that we have had in the UK for some time.

Delayed PRIIPS Rules

We understand that the European Commission has decided to postpone the introduction of PRIIPS rules by up to a year. The postponement is supported by most of the major EU member states and we suggest it is because most of European financial services companies and regulations are way behind that of the UK.

Comment

We believe this is a poor outcome for consumers across Europe and is a politically motivated decision because many of the major banking, investment and insurance houses pay the majority of taxes via company/corporation taxes across Europe. Consumers should be provided all of the information that they need in plain language as soon as possible.