EFAMA has long argued that the draft RTSs, as endorsed by the European Commission, will not achieve the intended objective to make the KID helpful to consumers. They will at best confuse investors, at worst mislead them.
EFAMA finds it important that the RTSs are amended in a satisfactory way, one that solves their current flaws - namely by allowing past performance and fixing the inaccurate calculation methodology of transaction costs. It trusts this adoption will result in amended RTSs that will help and inform consumers. The current draft RTSs do not.
EFAMA in no way would like to reopen discussions on the PRIIPs Level 1 Regulation. What is crucial now is to get the Level 2 PRIIP KID right - and this means amending appropriately the draft RTSs, while safeguarding and leaving untouched the letter and spirit of the Level 1 Regulation, save the necessary adaptations of the PRIIPs Regulation to allow for a postponement of its application date.
Market operators will apply the rules appropriately. The premise to do this is to know the final rules, and to have sufficient time to implement them. EFAMA wants to be clear: there is only one reason why it finds a delay absolutely essential, and this is because it is materially impossible and simply unrealistic for product manufacturers and distributors to meet the 31 December 2016 deadline. It urges the Commission to follow suit to the call from the ECON in this regard.
Full press release
© EFAMA - European Fund and Asset Management Association
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