Activities of Syed KAMALL related to 2012/0169(COD)
Shadow reports (1)
REPORT on the proposal for a regulation of the European Parliament and of the Council on key information documents for investment products PDF (710 KB) DOC (612 KB)
Amendments (100)
Amendment 66 #
Proposal for a regulation
Recital 1
Recital 1
(1) Retail investors are increasingly offered a wide variety of different types of packaged retail investment products when they consider making an investment. These products often provide specific investment solutions tailored to the needs of retail investors, but are frequently complex and difficult to understand. Existing disclosures to investors for such investment products are uncoordinated and often fail to aid retail investors compare between the different products, and in comprehending their features. As a consequence, retail investors have often made investments with risks and costs that were not fully understood by those investors, and have thereby on occasion suffered unforeseen losses.
Amendment 69 #
Proposal for a regulation
Recital 2
Recital 2
(2) Improving provisions on transparency of packaged retail investment products offered to retail investors is an important investor protection measure and a precondition for rebuilding confidence of retail investors in the financial market. First steps in this direction have been already been taken at Union level through the development of the key investor information regime established in Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS).
Amendment 70 #
Proposal for a regulation
Recital 3
Recital 3
(3) Different rules that vary according to the industry that offers the packaged retail investment products and national regulation in this area create an un-level playing field between different products and distribution channels, erecting additional barriers to a Single Market in financial services and products. Member States have already taken divergent and uncoordinated action to address shortcomings in investor protection measures and it is likely that this development would continue. Divergent approaches to packaged retail investment product disclosures impede the development of a level playing field between different packaged retail investment product manufacturers and those selling these products and thus distort competition. It would also create an uneven level of investor protection with the Union. Such divergences represent an obstacle to the establishment and smooth functioning of the Single Market. Consequently, the appropriate legal basis is Article 114 TFEU, as interpreted in accordance with the consistent case law of the Court of Justice of the European Union.
Amendment 72 #
Proposal for a regulation
Recital 4
Recital 4
(4) It is necessary to establish uniform rules at the level of the Union applying across all participants of the packaged retail investment product market on transparency so as to prevent divergences. A Regulation is necessary to ensure that a common standard for key information documents is established in such a uniform fashion so as to be able to harmonise the format and the content of these documents. The directly applicable rules of a Regulation should ensure that all participants in the packaged retail investment product market are subject to the same requirements. This should also ensure uniform disclosures by preventing divergent national requirements as a result of the transposition of a Directive. The use of a Regulation is also appropriate to ensure that all those selling packaged retail investment products are subject to uniform requirements in relation to the provision of the key information document to retail investors.
Amendment 74 #
Proposal for a regulation
Recital 5
Recital 5
(5) Whilst improving packaged retail investment product disclosures is essential in rebuilding the trust of retail investors in the financial markets, effectively regulated sales processes for these products are equally important. This Regulation is complementary to measures on distribution (including investment advice, investor protection measures and other sales services) in the Directive 2004/39/EC of the European Parliament and the Council. It is also complementary to measures taken on the distribution of insurance product in Directive 2002/92/EC of the European Parliament and of the Council.
Amendment 82 #
Proposal for a regulation
Recital 6
Recital 6
(6) This Regulation should apply to all products regardless of their form or construction that are manufactured by the financial services industry to provide investment opportunities to retail investors, where the return offeredamount repayable to the investor is exposed to the performance of one or more assets or reference values other than an interest ratesubject to fluctuations because of exposure in reference values or in the performance of one or more assets which are not directly purchased by the investor. This should include, among others, such investment products as investment funds, life insurance policies with an investment element, and retail structured producdeposits. For these products, investments are not of a direct kind achieved when buying or holding assets themselves. Instead these products intercede between the investor and the markets through a process of ‘packaging’, wrapping or bundling together assets so as to create different exposures, provide different product features, or achieve different cost structures as compared with a direct holding. Such ‘packaging’ can allow retail investors to engage in investment strategies that would otherwise be inaccessible or impractical, but can also require additional information to be made available, in particular to enable comparisons between different ways of packaging investments.
Amendment 83 #
Proposal for a regulation
Recital 6 a (new)
Recital 6 a (new)
(6a) CEBS, CESR and CEIOPS, as bodies with highly specialized expertise, submitted their findings in relation to the requirement for a KID to the Commission. In their final Task Force Report (6 October 2010) a definition was agreed upon and subsequently taken on board by the Commission. The definition is the result of an extensive dialogue and consultation with all interested stakeholders and should be respected. Limiting the scope of the regulation to packaged retail investment products will make the KID more effective in practice due to it being a more focused approach and more useful for consumers by targeting only those products where the KID could clearly be of use. A review of the scope at a later date will allow the initial impact of the KID to be assessed, and any possible future extension of scope that may be needed, if arbitrage and consumer detriment are identified, could be made after a full cost benefit analysis.
Amendment 89 #
Proposal for a regulation
Recital 7
Recital 7
(7) In order to ensure this Regulation applies solely to such packaged retail investment products, insurance products that do not offer investment opportunities and deposits, other than structured deposits, products solely exposed to interest rates should thereby be excluded from the scope of the Regulation. Assets that would be held directly, such as corporate shares or sovereign bonds, are not packaged investment products, and should therefore be excluded. Since the focus of this Regulation is on improving the comparability and comprehensibility of information about packaged retail investment products being marketed to retail investors, occupational pension schemes which fall under the scope of Directive 2003/41/EC of the European Parliament and of the Council of 3 June 2003 on the activities and supervision of institutions for occupational retirement provision or Directive 2009/138/EC of the European Parliament and the Council of 25 November 2009 and on the taking up and pursuit of the business of Insurance and Reinsurance (Solvency II), should not be subject to this Regulation. Similarly, certain occupational pension products which fall outside the scope of Directive 2003/41/EC should be excluded from the scope of this Regulation, provided that a financial contribution from the employer is required by national law, and provided that the employee has no choice as to the pension product providers well as officially recognised pension products and social security schemes subject to national or Union Law. Investment funds dedicated to institutional investors are not within the scope of this Regulation either since they are not for sale to retail investors. However, investment products with the purpose of accumulating savings for individual pensions should remain in scope because they often compete with the other products under this Regulation and are distributed in a similar way to the retail investor.
Amendment 103 #
Proposal for a regulation
Recital 9
Recital 9
(9) IPackaged retail investment product manufacturers – such as fund managers, insurance undertakings, issuers of securities, credit institutions or investment firms – should draw up the key information document for the packaged retail investment products they manufacture, as they are in the best position to know the product and are responsible for it. The document should be drawn up by the packaged retail investment product manufacturer before the products can be sold to retail investors. However, where a product is not sold to retail investors, there is no necessity to draw up a key information document, and where it is impractical for the packaged retail investment product manufacturer to draw up the key information document, this may be delegated to others. In order to ensure widespread dissemination and availability of key information documents, this Regulation should allow for publication by the packaged retail investment product manufacturer by means of a website of their choice.
Amendment 105 #
Proposal for a regulation
Recital 10
Recital 10
(10) To meet the needs of retail investors, it is necessary to ensure that information on packaged retail investment products is accurate, fair, clear and not misleading for those investors. This Regulation should therefore lay down common standards for the drafting of the key information document, in order to ensure that it is comprehensible for retail investors. Given the difficulties many retail investors have in understanding specialist financial terminology, particular attention should be paid to the vocabulary and style of writing used in the document. Rules should also be laid down on the language in which it should be drawn up. Furthermore, retail investors should be able to understand the key information document on its own without referring to other information.
Amendment 112 #
Proposal for a regulation
Recital 11
Recital 11
(11) Retail investors should be provided with the information necessary for them to take an informed investment decision and compare different packaged retail investment products, but unless the information is short and concise there is a risk they will not use it. The key information document should therefore only contain key information, notably as regards the nature and features of the product, including whether it is possible to lose capital, the costs and risk profile of the product, as well as relevant performance information, and certain other specific information which may be necessary for understanding the features of individual types of products, including those intended to be used for retirement planning. However the firm selling the packaged retail investment may still, in addition to the stand-alone KID, need to provide further personalised information and product calculations to a customer before the final conclusion of a transaction, depending on the nature of the packaged retail investment product.
Amendment 117 #
Proposal for a regulation
Recital 12
Recital 12
(12) The key information document should be drawn up in a standardised format which allows retail investors to compare different packaged retail investment products, since consumer behaviours and capabilities are such that the format, presentation and content of information must be carefully calibrated to maximise understanding and use of information. The same order of items and headings for these items should be followed for each document. In addition, the details of the information to be included in the key information document for different products and the presentation of this information should be further harmonised through delegated acts that take into account existing and on-going research on consumer behaviour, including results from testing the effectiveness of different ways of presenting information with consumers. In addition, some packaged retail investment products give the retail investor a choice between multiple underlying investments. Those products should be taken into account when drawing up the format.
Amendment 123 #
Proposal for a regulation
Recital 15
Recital 15
(15) In order to ensure that the key information document contains reliable information, this Regulation should require packaged retail investment product manufacturers to keep the key information document up to date. To this end, it is necessary that detailed rules relating to the conditions and frequency of the review of the information and the revision of the key information document are laid down in a delegated act to be adopted by the Commission.
Amendment 128 #
Proposal for a regulation
Recital 16
Recital 16
(16) Key information documents are the foundation for investment decisions by retail investors. For this reason, packaged retail investment product manufacturers have an important responsibility towards retail investors in ensuring that they comply with the rules of this Regulation. It is therefore important to ensure that retail investors who relied on a key investor document for their investment decision have an effective right of redress. It should also be ensured that all retail investors across the Union have the same right to seek compensation for damages they may suffer due to failures on the part of packaged retail investment product manufacturers in complying with the requirements set out in this Regulation. Therefore, rules regarding the liability of the packaged retail investment product manufacturers should be harmonised. This Regulation should establish that the retail investor should be able to hold the product manufacturer liable for an infringement of this Regulation in case a loss is caused through the use of the key information document. that was misleading, inaccurate or inconsistent with the prospectus or, where no prospectus is prepared, the terms and conditions of the product.
Amendment 130 #
Proposal for a regulation
Recital 17
Recital 17
Amendment 135 #
Proposal for a regulation
Recital 18
Recital 18
(18) Regarding matters concerning tThe civil liability of a packaged retail investment product manufacturer and which are not covered by this regulation, such matters should be governed by the applicable national law determined by the relevant rules of International Private Law. The competent court to decide on a claim for civil liability brought by a retail investor should be determined by the relevant rules on International Jurisdiction.
Amendment 139 #
Proposal for a regulation
Recital 19
Recital 19
(19) So that the retail investor is able to take an informed investment decision, persons selling packaged retail investment products should be required to provide the key information document in good time before any transaction is concluded. This requirement should generally apply irrespective of where or how the transaction takes place. Persons selling include both distributors and the packaged retail investment product manufacturer themselves where they choose to sell the product directly to retail investors. To ensure necessary flexibility and proportionality, retail investors who wish to conclude a transaction using a means of distance communication should be able to receive the key information document after the conclusion of the transaction. Even in this case the key information document would be useful for the investor, for instance to allow the investor to compare the product purchased with that described in the key information document. This Regulation is without prejudice to the Directive 2002/65/EC of the European Parliament and the Council.
Amendment 141 #
Proposal for a regulation
Recital 20
Recital 20
(20) Uniform rules should be laid down in order to give the person selling the packaged retail investment product a certain choice with regard to the medium in which the key information document is provided to retail investors allowing for use of electronic communications where it is appropriate having regard to the circumstances of the transaction. However, the retail investor should be given the option to receive it on paper. In the interest of consumer access to information, the key information document should always be provided free of charge.
Amendment 144 #
Proposal for a regulation
Recital 21
Recital 21
(21) To ensure the trust of retail investors in packaged retail investment products, requirements should be established for appropriate internal procedures which ensure that retail investors receive a substantive response from the investment product manufacturer to complaints.
Amendment 148 #
Proposal for a regulation
Recital 22
Recital 22
(22) Procedures for alternative dispute resolution allow for a quicker and less expensive settlement of disputes than the courts and lighten the burden on the court system. For that purpose packaged retail investment product manufacturers and the persons selling packaged retail investment products should be under an obligation to participate in those procedures initiated by retailed investors concerning the rights and obligations established by this Regulation, subject to certain safeguards in conformity with the principle of effective judicial protection. In particular, the procedures for alternative dispute resolution should not infringe the rights which the parties to such procedures have to bring legal proceedings before the courts.
Amendment 150 #
Proposal for a regulation
Recital 23
Recital 23
(23) As the key information document should be produced for packaged retail investment products by entities operating in the banking, insurance, securities and fund sectors of the financial markets, it is of utmost importance to ensure a smooth co- operation between the various authorities supervising packaged retail investment product manufacturers so that they have a common approach to the application of this Regulation.
Amendment 151 #
Proposal for a regulation
Recital 24
Recital 24
(24) In line with the Commission Communication of December 2010 on reinforcing sanctioning regimes in the financial sector and in order to ensure that the requirements set out in this Regulation are fulfilled, it is important that Member States take necessary steps to ensure that breaches of this Regulation are subject to appropriate administrative sanctions and measures. In order to ensure that sanctions have a dissuasive effect and to strengthen investors' protection by warning them about investment products marketed in breach of this Regulation, sanctions and measures should normally be published, except in certain well defined circumstances.
Amendment 155 #
Proposal for a regulation
Recital 29
Recital 29
(29) A review of this Regulation should be carried out four years after the entry into force of this Regulation in order to take account of market developments, such as the emergence of new types of packaged retail investment products, as well as developments in other areas of Union law and the experiences of Member States. The review should assess whether the measures introduced have improved the average retail investors' understanding of packaged retail investment products and the comparability of the products. It should also consider whether the transitional period applying to UCITS should be extended, or whether other options for the treatment of UCITS might be considered. On the basis of the review, the Commission should submit a report to the European Parliament and the Council accompanied, if appropriate, by legislative proposals. Such a review could also consider whether it would be in the interest of retail consumer protection to extend the KID or develop a document similar to the KID for other retail products that do not have a form of packaging, such as ordinary deposit accounts, shares and bonds.
Amendment 158 #
Proposal for a regulation
Recital 30
Recital 30
(30) In order to give packaged retail investment product manufacturers and persons selling investment products sufficient time to prepare for the practical application of the requirements of this Regulation, the requirements of this Regulation should not become applicable until two years after the entry into force of this Regulation.
Amendment 161 #
Proposal for a regulation
Recital 32
Recital 32
(32) Since the objective of the action to be taken, namely to enhance retail investors' protection and improve their confidence in packaged retail investment products, including where these products are sold cross-border, cannot be sufficiently achieved by the Member States acting independently of one another, and only action at the European level could address the identified weaknesses, and can therefore by reason of its effects be better achieved at Union level, the Union may adopt measures, in accordance with principle of subsidiarity as set out in Article 5 of the Treaty of the European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives,
Amendment 169 #
Proposal for a regulation
Article 2 – paragraph 1
Article 2 – paragraph 1
This Regulation shall apply to the manufacturing and selling of packaged retail investment products.
Amendment 175 #
Proposal for a regulation
Article 2 – paragraph 2 – point a
Article 2 – paragraph 2 – point a
(a) life insurance products, which do not offer a surrender value or where that surrender value is not wholly or partially exposed, directly or indirectly, to market fluctuationsith or without profit sharing, where the investment risk is not borne by the policyholder and which fall under Annex I (I) of Directive 2002/83/EC and annex II (I) of Directive 2009/138/EC;
Amendment 185 #
Proposal for a regulation
Article 2 – paragraph 2 – point d
Article 2 – paragraph 2 – point d
(d) other securities which do not embed a derivativeith a rate of return that is determined in relation to an interest rate and which are held directly;
Amendment 191 #
Proposal for a regulation
Article 2 – paragraph 2 – point f
Article 2 – paragraph 2 – point f
(f) all pension products as defined under Article 4(d) and pension products for which a financial contribution from the employer is required by national law and where the employeer has nomade the relevant choice as to the pension product provider.; and
Amendment 198 #
Proposal for a regulation
Article 2 – paragraph 2 – point f a (new)
Article 2 – paragraph 2 – point f a (new)
(fa) officially recognised pension products and social security schemes as defined under national or Union law.
Amendment 203 #
Proposal for a regulation
Article 3 – paragraph 1
Article 3 – paragraph 1
1. Where investment product manufacturers subject to this Regulation are also subject to Directive 2003/71/EC, this Regulation and Directive 2003/71/EC shall both apply. Information contained in the key investor information document shall comply with this Regulation and shall be regarded by competent authorities as appropriate information with respect to information on risk and expenses and deemed as satisfying the requirements laid down in Article 5(2) of Directive 2003/71/EC relating to the content of the key information as specified in Article 2(1)(s)(ii) and (iii) of that Directive.
Amendment 206 #
Proposal for a regulation
Article 3 – paragraph 2
Article 3 – paragraph 2
2. Where investment product manufacturers subject to this Regulation are also subject to Directive 2009/138/EC, this Regulation andInformation contained in the key information document shall be regarded by competent authorities as appropriate information with respect to information on the risks underlying the contract which are assumed by the policy holder and shall be deemed as satisfying the requirements laid down in Article 185(4) of Directive 2009/138/EC shall both apply.
Amendment 214 #
Proposal for a regulation
Article 4 – paragraph 1 – point a
Article 4 – paragraph 1 – point a
(a) ‘packaged retail investment product’ means an investment where regardless of the legal form of the investment the amount repayable to the investor is exposed to fluctuations in reference values or in the performance of one or more assets which are not directly purchased by the investor;
Amendment 218 #
Proposal for a regulation
Article 4 – paragraph 1 – point b – introductory part
Article 4 – paragraph 1 – point b – introductory part
(b) ‘packaged retail investment product manufacturer’ means:
Amendment 248 #
Proposal for a regulation
Article 6 – paragraph 2
Article 6 – paragraph 2
2. The key information document shall be a stand-alone document, clearly separate from marketing materials and shall not contain any marketing material or any recommendation to invest.
Amendment 253 #
Proposal for a regulation
Article 6 – paragraph 2 a (new)
Article 6 – paragraph 2 a (new)
(2a) For those PRIPs that offer variations in investment term, particular benefits or payment options or multiple underlying fund choices to the individual investor, or PRIPs for which specific information may otherwise vary according to the personal characteristics or choices of the individual retail customer, the information required by Article 8 (2) can be set out in summary terms or as indicative figures, for example giving a range of values. In these cases the KID should prominently state those additional documents to which retail customers will need to refer in order to obtain information specific to their personal circumstances.
Amendment 264 #
Proposal for a regulation
Article 6 – paragraph 3 – point b – point iii
Article 6 – paragraph 3 – point b – point iii
(iii) acronyms and technical terms are avoided when everyday words can be used instead.
Amendment 269 #
Proposal for a regulation
Article 6 – paragraph 3 – point b a (new)
Article 6 – paragraph 3 – point b a (new)
(ba) focused on the key information that investors need.
Amendment 281 #
Proposal for a regulation
Article 8 – paragraph 1 – subparagraph 2
Article 8 – paragraph 1 – subparagraph 2
‘This document provides you with key information about this investment product. It is not marketing material. The information is required by law to help you understand the nature, benefits and risks of this investment product and the risks of investing in it. You are advised to read it so that you can take an informed decision about whether to investo assist you in making comparisons between this product and alternative investment products. Before making a final decision to invest you should carefully consider all of the relevant documents that set out the terms and conditions of your investment, alongside this document. This document only provides information and as such it does not indicate whether a product is suitable for your specific, personal circumstances.’
Amendment 290 #
Proposal for a regulation
Article 8 – paragraph 2 – point a
Article 8 – paragraph 2 – point a
(a) under a section at the beginning of the document, the name of the packaged retail investment product and identity of the packaged retail investment product manufacturer (name and address of its headquarters);
Amendment 302 #
Proposal for a regulation
Article 8 – paragraph 2 – point b – introductory part
Article 8 – paragraph 2 – point b – introductory part
(b) under a section titled ‘What is this investment?’, the nature and main features of the packaged retail investment product, including
Amendment 305 #
Proposal for a regulation
Article 8 – paragraph 2 – point b – point i
Article 8 – paragraph 2 – point b – point i
(i) the type of the packaged retail investment product;
Amendment 309 #
Proposal for a regulation
Article 8 – paragraph 2 – point b – point ii
Article 8 – paragraph 2 – point b – point ii
(ii) its objectives and the means for achieving them;, including a description of the underlying instruments or variables and how the return is determined
Amendment 311 #
Proposal for a regulation
Article 8 – paragraph 2 – point b – point ii a (new)
Article 8 – paragraph 2 – point b – point ii a (new)
(iia) a sentence describing in simple terms the implicit underlying expectation of an investor purchasing the packaged retail investment product;
Amendment 312 #
Proposal for a regulation
Article 8 – paragraph 2 – point b – point iii
Article 8 – paragraph 2 – point b – point iii
Amendment 327 #
Proposal for a regulation
Article 8 – paragraph 2 – point b – point iv
Article 8 – paragraph 2 – point b – point iv
(iv) where the packaged retail investment product offers insurance benefits, details of these insurance benefits;
Amendment 331 #
Proposal for a regulation
Article 8 – paragraph 2 – point b – point v
Article 8 – paragraph 2 – point b – point v
(v) the term of the packaged retail investment product, if known;
Amendment 348 #
Proposal for a regulation
Article 8 – paragraph 2 – point c – introductory part
Article 8 – paragraph 2 – point c – introductory part
(c) under a section titled ‘Could I lose money?’, a brief indication of whether loss of capital is possible, including"What are the possible risks and reward?
Amendment 354 #
Proposal for a regulation
Article 8 – paragraph 2 – point c – point i
Article 8 – paragraph 2 – point c – point i
(i) any guarantees or capithe risk and reward profile of the packaged retail protection provided, as well as any limitations to theseinvestment product, including a summary indicator of this profile and warnings in relation to any specific risks that may not be fully reflected in the summary indicator;
Amendment 359 #
Proposal for a regulation
Article 8 – paragraph 2 – point c – point ii
Article 8 – paragraph 2 – point c – point ii
(ii) whether the investment product is covered by a compensation or guarantee sca brief indication of whether loss of capital is possible, including any guarantees or capital protection provided, as well as any limitations to themse;
Amendment 372 #
Proposal for a regulation
Article 8 – paragraph 2 – point d
Article 8 – paragraph 2 – point d
(d) under a section titled ‘What is it for?’ an indication of the recommended minimum holding period and the expected liquidity profile of the product including the possibility and conditions for any disinvestments before maturity, having regard to the risk and reward profile of the packaged retail investment product and the market evolution it targets;
Amendment 373 #
Proposal for a regulation
Article 8 – paragraph 2 – point e
Article 8 – paragraph 2 – point e
Amendment 392 #
Proposal for a regulation
Article 8 – paragraph 2 – point f
Article 8 – paragraph 2 – point f
(f) under a section titled ‘What are the costs?’, the costs associated with an investment in the investment product, comprising both direct and indirect costs to be borne by the investor, including summary indicators of these costs; containing all annual charges and other payments taken from the product over a defined period. In addition, the key information document shall, if relevant, list and explain any charges taken from the investor under specific conditions, the basis on which the charge is calculated, and when the charge applies. The key information document shall also refer to the existence of variable charges (such as transaction costs, stock exchange taxes), which cannot be included in the calculations of costs.
Amendment 407 #
Proposal for a regulation
Article 8 – paragraph 2 – point g
Article 8 – paragraph 2 – point g
(g) under a section titled ‘How has it done in the past?’, the past performance of the packaged retail investment product, if this is relevant having regard to the nature of the product and the length of its track record;
Amendment 420 #
Proposal for a regulation
Article 8 – paragraph 2 – point h a (new)
Article 8 – paragraph 2 – point h a (new)
(h a) under a section titled "What other documents must I read prior to investing", a brief description of documentation (including a prospectus, where relevant) and an explanation that all such documents (including the KID) should be taken into consideration prior to taking an investment decision.
Amendment 432 #
Proposal for a regulation
Article 8 – paragraph 3
Article 8 – paragraph 3
3. The packaged retail investment product manufacturer may only include other information where it is necessary for the retail investor to take an informed investment decision about a specific packaged retail investment product.
Amendment 441 #
Proposal for a regulation
Article 8 – paragraph 4
Article 8 – paragraph 4
4. The information referred to in paragraph 2 shall be presented in a common format including the common headings and following the standardised order set out in paragraph 2, so as to allow for comparison with the key information document for any other packaged retail investment product. The key information document shall prominently display a common symbol to distinguish the document from other documents.
Amendment 451 #
Proposal for a regulation
Article 8 – paragraph 5
Article 8 – paragraph 5
5. The Commission shall be empowered to adopt delegated acts in accordance with Article 23 specifying the details of the presentation and the content of each of the elements of information referred to in paragraph 2, the presentation and details of the other information the packaged retail investment product manufacturer may include within the key information document as referred to in paragraph 3, and the details of the common format and the common symbol referred to in paragraph 4. The Commission shall take into account the differences between packaged retail investment products and the capabilities of retail investors as well as the features of packaged retail investment products that allow the retail investor to select between different underlying investments or other options provided for by the product, including where this selection can be undertaken at different points in time, or changed in the future.
Amendment 463 #
Proposal for a regulation
Article 8 – paragraph 6 – subparagraph 2
Article 8 – paragraph 6 – subparagraph 2
The draft regulatory technical standards shall take into account the different types of packaged retail investment products. The European Supervisory Authorities shall submit those draft regulatory technical standards to the Commission by […].
Amendment 467 #
Proposal for a regulation
Article 9 – paragraph 1
Article 9 – paragraph 1
Marketing communications that contain specific information relating to the packaged retail investment product shall not include any statement that contradicts the information contained in the key information document or diminishes the significance of the key information document. Marketing communications shall indicate that a key information document is available and supply information on how to obtain it.
Amendment 473 #
Proposal for a regulation
Article 10 – paragraph 1
Article 10 – paragraph 1
1. The packaged retail investment product manufacturer shall review the information contained in the key information document regularly and revise the document where the review indicates that changes need to be made.
Amendment 479 #
Proposal for a regulation
Article 10 – paragraph 2 – point c
Article 10 – paragraph 2 – point c
(c) the specific conditions under which information contained in the key information document must be reviewed or the key information document revised where an packaged retail investment product is made available to retail investors in a non- continuous manner;
Amendment 482 #
Proposal for a regulation
Article 10 – paragraph 2 – point d
Article 10 – paragraph 2 – point d
(d) the circumstances in which retail investors are to be informed about a revised key information document for an packaged retail investment product purchased by them.
Amendment 486 #
Proposal for a regulation
Article 11 – paragraph 1
Article 11 – paragraph 1
1. WThere an investment product manufacturer has produced a key information document which does not comply with the requirements of Articles 6, 7 and 8 on which a retail investor has relied when making an investment decision, such a retail invest information in the key information document shall constitute pre-contractual information. It shall be fair, clear and not misleading. The key infor may claim from the invetion document shall be consistment product manufacturer damagewith any prospectus for any loss caused to that retail investor through the use of the key information document., if no prospectus has been published, the terms and conditions of the packaged retail investment product
Amendment 498 #
Proposal for a regulation
Article 11 – paragraph 2
Article 11 – paragraph 2
2. WThen a retail investor demonstrates a loss resulting from the use of the information contained in the key information document, the investment product manufacturer has to prove that information in the key information document shall constitute pre-contractual information. It shall be fair, clear and not misleading. Where binding contractual documents exist, the key information document shasll been drawn up in compliance with Articles 6, 7 and 8 of this Regulation consistent with those documents.
Amendment 510 #
Proposal for a regulation
Article 11 – paragraph 3
Article 11 – paragraph 3
3. The distribution of the burden of proof referred to in paragraph 2 shall not be alteredpackaged retail investment product manufacturer shall incur civil liability inf advance through an agreement. Any clause in such agreements in advance shall not ben investor suffers loss because the Key Information Document is misleading, inaccurate or inconsistent with the other binding con the retail investortractual documents for the packaged retail investment product. This civil liability shall not be limited or excluded by contract.
Amendment 514 #
Proposal for a regulation
Article 12 – paragraph 1
Article 12 – paragraph 1
1. A person selling an packaged retail investment product to retail investors shall provide them with the key information document in good time before the conclusion of a transaction relating to the packaged retail investment product. Where a packaged retail investment product is recommended to a client, the key information document shall be provided without delay.
Amendment 525 #
Proposal for a regulation
Article 12 – paragraph 2 – introductory part
Article 12 – paragraph 2 – introductory part
2. By way of derogation from paragraph 1,In no event shall a person selling an packaged retail investment product may provide the retailto retail investors provide such investors with thea key information document immediately after the conclusion of the transaction where:without first obtaining the written permission of the packaged retail investment product manufacturer to do so. Such permission may be given by the packaged retail investment product manufacturer on an indefinite basis for a limited period of time or subject to other conditions. Where any specified condition is not met, such permission will no longer be valid for the purposes of this paragraph.
Amendment 535 #
Proposal for a regulation
Article 12 – paragraph 2 – point a – point c
Article 12 – paragraph 2 – point a – point c
(c) where the person selling the packaged retail investment product has informed the retail investor of this fact.
Amendment 537 #
Proposal for a regulation
Article 12 – paragraph 2 – point a – point c a (new)
Article 12 – paragraph 2 – point a – point c a (new)
(c a) the retail investor gives his express consent to be provided with the key information document immediately after the conclusion of the transaction
Amendment 542 #
Proposal for a regulation
Article 12 – paragraph 3
Article 12 – paragraph 3
3. Where successive transactions regarding the same investment product are carried out on behalf of a retail investor in accordance with instructions given by that investor to the person selling the investment product prior to the first transaction, the obligation to provide a key information document under paragraph 1 shall only apply to the first transactionIn the event a person selling a packaged retail investment product to retail investors either: (a) fails to provide investors with a key information document; or (b) provides investors with a key information document in respect of which it has not obtained the permission required under paragraph 2 above, the sole responsibility for this breach will lie with the person selling such a packaged retail investment product and, unless the packaged retail investment product manufacturer is the person making such sale, no liability shall arise for the packaged retail investment product manufacturer.
Amendment 551 #
Proposal for a regulation
Article 13 – paragraph 2 – introductory part
Article 13 – paragraph 2 – introductory part
2. The person selling an packaged retail investment product shall provide the key information document to the retail investor in one of the following media:
Amendment 552 #
Proposal for a regulation
Article 13 – paragraph 1
Article 13 – paragraph 1
1. The person selling an packaged retail investment product shall provide the key information document to retail investors free of charge.
Amendment 559 #
Proposal for a regulation
Article 13 – paragraph 5 – point a
Article 13 – paragraph 5 – point a
(a) the provision of the key information document by means of a website is appropriate in the context of the business conducted between the person selling an packaged retail investment product and the retail investor;
Amendment 563 #
Proposal for a regulation
Article 13 – paragraph 5 – point d
Article 13 – paragraph 5 – point d
(d) where the key information document has been revised in accordance with Article 10 all revisedthe latest versions shall also be made available to the retail investor; on request, previous versions shall be made available to the investor;
Amendment 565 #
Proposal for a regulation
Article 13 – paragraph 6
Article 13 – paragraph 6
6. For the purposes of paragraph 4 and 5, the provision of information using a durable medium other than paper or by means of a website shall be regarded as appropriate in the context of the business conducted between the person selling an packaged retail investment product and the retail investor, if there is evidence that the retail investor has regular access to the Internet. The provision by the retail investor of an e-mail address for the purposes of that business shall be regarded as such evidence.
Amendment 583 #
Proposal for a regulation
Article 14 – paragraph 1
Article 14 – paragraph 1
The investment product manufacturer shall establish appropriate procedures and arrangements which ensure that retail investors who have submitted a complaint in relation to the key information document receive a substantive reply in a timely and proper manner, in accordance with the directive on alternative dispute resolution.
Amendment 584 #
Proposal for a regulation
Article 15
Article 15
Amendment 611 #
Proposal for a regulation
Article 15 – paragraph 2
Article 15 – paragraph 2
Amendment 612 #
Proposal for a regulation
Article 18 – paragraph 2
Article 18 – paragraph 2
2. In the exercise of their powers in Article 19, competent authorities shall cooperate closely to ensure that the administrative measures and sanctions produce the desired results of this Regulation and coordinate their action in order to avoid possible duplication and overlap when applying administrative measures and sanctions to cross border casesCompetent authorities shall have, in accordance with national law, all supervisory powers, including investigatory powers, available to them as necessary to fulfil their duties under this Regulation.
Amendment 613 #
Proposal for a regulation
Article 18 – paragraph 2 a (new)
Article 18 – paragraph 2 a (new)
2 a. In the exercise of their powers under Article 19, competent authorities shall cooperate closely to ensure that the administrative measures and sanctions produce the desired results of this Regulation and coordinate their action in order to avoid possible duplication and overlap when applying administrative measures and sanctions to cross border cases.
Amendment 614 #
Proposal for a regulation
Article 15 – paragraph 3
Article 15 – paragraph 3
Amendment 615 #
Proposal for a regulation
Article 19 – paragraph 1 – introductory part
Article 19 – paragraph 1 – introductory part
1. This Article applies to the following breaches:any breach of the Regulation.
Amendment 618 #
Proposal for a regulation
Article 19 – paragraph 1 – point a
Article 19 – paragraph 1 – point a
Amendment 620 #
Proposal for a regulation
Article 19 – paragraph 1 – point b
Article 19 – paragraph 1 – point b
Amendment 622 #
Proposal for a regulation
Article 19 – paragraph 1 – point c
Article 19 – paragraph 1 – point c
Amendment 624 #
Proposal for a regulation
Article 19 – paragraph 1 – point d
Article 19 – paragraph 1 – point d
Amendment 626 #
Proposal for a regulation
Article 19 – paragraph 1 – point e
Article 19 – paragraph 1 – point e
Amendment 628 #
Proposal for a regulation
Article 19 – paragraph 1 – point f
Article 19 – paragraph 1 – point f
Amendment 630 #
Proposal for a regulation
Article 19 – paragraph 2 – point a
Article 19 – paragraph 2 – point a
(a) an order prohibiting the marketing of an packaged retail investment product;
Amendment 631 #
Proposal for a regulation
Article 19 – paragraph 2 – point b
Article 19 – paragraph 2 – point b
(b) an order suspending the marketing of an packaged retail investment product;
Amendment 633 #
Proposal for a regulation
Article 19 – paragraph 2 – point d
Article 19 – paragraph 2 – point d
(d) an order for the publication of a new verprohibiting the provision of a key information document. which does not comply with the requirement of Articles 6, 7, 8 and 10
Amendment 635 #
Proposal for a regulation
Article 19 – paragraph 2 – point d a (new)
Article 19 – paragraph 2 – point d a (new)
(d a) pecuniary penalties.
Amendment 640 #
Proposal for a regulation
Article 19 – paragraph 3
Article 19 – paragraph 3
3. Member States shall ensure that, where the competent authorities have imposed one or more administrative measures and sanctions in accordance with paragraph 2, the competent authorities have the power to issue or require the packaged retail investment product manufacturer or person selling theadvising on or selling the packaged retail investment product to issue a direct communication to the retail investor concerned, giving them information about the administrative measure or sanction, and informing them where to lodge complaints or submit claims for redress.
Amendment 641 #
Proposal for a regulation
Article 20 – paragraph 1 – introductory part
Article 20 – paragraph 1 – introductory part
The competent authorities shall apply the administrative measures and sanctions referred to in Article 19(2) taking into account all relevant circumstances including, where appropriate:
Amendment 643 #
Proposal for a regulation
Article 20 – paragraph 1 – point b
Article 20 – paragraph 1 – point b
(b) the degree of responsibility of the responsible natural or legal person;
Amendment 645 #
Proposal for a regulation
Article 20 – paragraph 1 – point d
Article 20 – paragraph 1 – point d
(d) the cooperative behaviour of the natural or legal person responsible for the breach;
Amendment 647 #
Proposal for a regulation
Article 20 – paragraph 1 – point e
Article 20 – paragraph 1 – point e
(e) any previous breaches by the responsible natural or legal person.
Amendment 649 #
Proposal for a regulation
Article 20 – paragraph 1 – point e a (new)
Article 20 – paragraph 1 – point e a (new)
(e a) other relevant factors.
Amendment 676 #
Proposal for a regulation
Article 25 – paragraph 1
Article 25 – paragraph 1
1. Four years after the date of entry into force of this Regulation, the Commission shall review this Regulation. The review shall include a general survey of the practical application of the rules laid down in this Regulation, taking due account of developments in the market for retail investment products. As regards UCITS as defined in Article 1 (2) of Directive 2009/65/EC, the review shall assess whether the transitional arrangements under Article 24 of this Regulation shall be prolonged, or whether, following the identification of any necessary adjustments, the provisions on key investor information in Directive 2009/65/EC might be replaced by or considered equivalent to the key investor document under this Regulation. The review shall also reflect on a possible extension of the scope of this Regulation to other financial producto cover other products and instruments available to retail clients.