Around 602 MEPs voted in favour of changing the the current regulatory technical standards (RTS) for introducing the key information document (Kid) – a three-page brochure designed to make it easier for retail investors to compare packaged retail and insurance-based investment products (Priips).
However, the introduction of the Priips Kid is still on course for 1 January 2017.
Speaking to International Adviser at the annual Fund Links Forum 2016 on Wednesday, Morgan-Moodie, the chief executive of the Association of the International Life Offices (Ailo), said he anticipated the results of the vote as earlier this month the European parliament’s ECON committee rejected the RTS, which in recent months has increasingly come under fire for being “unworkable”.
“The European Commission (EC) will now have to go away and seriously think about their position. They’ve obviously been given a bloody nose by the parliament.
“What seems to have happened is that the EC had decided on what it wants and expected the European parliament to meekly follow like sheep but the parliament said no, this is wrong and this is not what Priips is about,” said Morgan-Moodie.
Priips delay expected
John Beaney, Ailo’s legal and regulatory executive, described the decision as “fantastic news” and said he expects the Priips regulation, which is still set to be rolled out across the EU in January, will be delayed as the EC hashes out the new RTS terms.
“I think it’s fantastic news, from the parliament’s point of view some common sense has prevailed at long last. It’s back with the commission now because the resolution was two-part, one to reject the RTS and secondly to postpone introducing the regulation.
“So the question is will the EC also see sense and come back with a proposal to delay, like they have with Mifid II, the Priips regulation. To my mind, they’ve got no option now they’re going to have to delay,” said Beaney.