Activities of Thomas HÄNDEL 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)
Shadow opinions (1)
OPINION on the proposal for a regulation of the European Parliament and of the Council on key information documents for investment products
Amendments (60)
Amendment 27 #
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 offered to the investor is exposed to the performance of one or more assets or reference values other than an interest rate. This should include such investment products as investment funds, life insurance policies with an investment element, and retail structured products. 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 29 #
Proposal for a regulation
Recital 7
Recital 7
(7) In order to ensure this Regulation applies solely to such packaged investment products, insurance products that do not offer investment opportunities and 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 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 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 provider. 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 30 #
Proposal for a regulation
Recital 9
Recital 9
(9) 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 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 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 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 investment product manufacturer by means of a website of their choice and a central website to be created by the ECB and the relevant national supervisory authority.
Amendment 35 #
Proposal for a regulation
Recital 17
Recital 17
(17) As retail investors in general do not have close insight as to the internal procedures of investment product manufacturers, a reversal of the burden of proof should be established. The product manufacturer would have to prove that the key information document was drawn up in compliance with this Regulation. However, it would be for the retail investor to demonstrate that his loss has occurred due to the use of the information in the key information document because this matter falls within the direct personal sphere of the retail investor.
Amendment 36 #
Proposal for a regulation
Recital 19
Recital 19
(19) So that the retail investor is able to take an informed investment decision, persons selling 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 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 43 #
Proposal for a regulation
Recital 30
Recital 30
(30) In order to give 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 twoone years after the entry into force of this Regulation.
Amendment 44 #
Proposal for a regulation
Article 2 – paragraph 2
Article 2 – paragraph 2
Amendment 47 #
Proposal for a regulation
Article 4 – paragraph 1 – point a
Article 4 – paragraph 1 – point a
(a) '‘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 49 #
Proposal for a regulation
Article 5 – paragraph 1
Article 5 – paragraph 1
The investment product manufacturer shall draw up a key information document in accordance with the requirements laid down in this Regulation and the specimen contained in the annex for each investment product it produces and shall publish the document on a website of its choice and centrally on a website to be created by the ECB and the relevant national supervisory authority before the investment product can be sold to retail investors.
Amendment 53 #
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 product advertisements.
Amendment 55 #
Proposal for a regulation
Article 6 – paragraph 3 – introductory part
Article 6 – paragraph 3 – introductory part
3. The key information document shall be drawn up as a short document of a maximum of two DIN A4 pages which is:
Amendment 58 #
Proposal for a regulation
Article 6 – paragraph 3 – point b – point iii
Article 6 – paragraph 3 – point b – point iii
(iii) technical terms are avoided when everyday words can be used instead.
Amendment 61 #
Proposal for a regulation
Article 7 – paragraph 1
Article 7 – paragraph 1
The key information document shall be written in the official language, or one of the official languages of the Member State where the investment product is sold, or in a language accepted by the competent authorities of that Member State, or where it has been written in a different language, it shall be translated into one of these languages.
Amendment 62 #
Proposal for a regulation
Article 8 – paragraph 1
Article 8 – paragraph 1
This document provides you with key information about this investment product and the fee paid to your intermediary. It is not marketing material. The information is required by law to help you understand the nature 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 invest.
Amendment 66 #
Proposal for a regulation
Article 8 – paragraph 2 – point b – point vi a (new)
Article 8 – paragraph 2 – point b – point vi a (new)
(via) and the possibility of cancelling the investment product.
Amendment 68 #
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 scheme, and if so, which scheme;
Amendment 70 #
Proposal for a regulation
Article 8 – paragraph 2 – point e
Article 8 – paragraph 2 – point e
(e) under a section titled "What are the risks and what might I get back?", the risk and reward profile of the investment 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; the description of the risks should be clear and easy to understand;
Amendment 72 #
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, and the impact of these costs on the return;
Amendment 75 #
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 offered to the investor is exposed to the performance of one or more assets or reference values other than an interest rate. This should include such investment products as investment funds, life insurance policies with an investment element, and retail structured products. 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 79 #
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 investment product, if this is relevant having regard to the nature of the product and the length of its track record;
Amendment 82 #
Proposal for a regulation
Article 8 – paragraph 2 – point h
Article 8 – paragraph 2 – point h
(h) for pension products, under a section titled "What might I get when I retire?", projections of possible future outcomes, clearly subdivided into various development scenarios, including the worst-case scenario.
Amendment 84 #
Proposal for a regulation
Article 8 – paragraph 2 – point h a (new)
Article 8 – paragraph 2 – point h a (new)
(ha) under a section titled "What fee does my intermediary receive for services rendered?", an overview of the type and amount of fees paid or due to be paid to the intermediary;
Amendment 85 #
Proposal for a regulation
Recital 7
Recital 7
(7) In order to ensure this Regulation applies solely to such packaged investment products, insurance products that do not offer investment opportunities and 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 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 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 provider. 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 86 #
Proposal for a regulation
Article 8 – paragraph 3
Article 8 – paragraph 3
Amendment 88 #
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 investment product. The key information document shall prominently display a common symbol to distinguish the document from other documents; as a matter of principle, any negative information shall be presented in complete sentences before any positive information; price lists and conceptual abbreviations shall be prohibited.
Amendment 89 #
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 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 investment products and the capabilities of retail investors as well as the features of 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. The Commission shall further propose a traffic-light system that will make it easier to classify and categorise investment products as extremely risky, risky and less risky.
Amendment 93 #
Proposal for a regulation
Article 11 – paragraph 1
Article 11 – paragraph 1
1. Where 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 investor may claim from the investment product manufacturer damages for any loss caused to that retail investor through the use of the key information document and may, where appropriate, return the investment product and have the purchase price refunded.
Amendment 97 #
Proposal for a regulation
Article 11 – paragraph 2
Article 11 – paragraph 2
2. Whenre a retail investor demonstrates a loss resulting from the use of the information contained in the key information documenthas used the key information document and has suffered a loss, the investment product manufacturer shas toll prove that the key information document has been drawn up in compliance with Articles 6, 7 and 8 of this Regulation.
Amendment 98 #
Proposal for a regulation
Recital 9
Recital 9
(9) 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 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 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 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 investment product manufacturer by means of a website of their choice and a central website to be created by the ECB and the relevant national supervisory authority.
Amendment 100 #
Proposal for a regulation
Article 12 – paragraph 1
Article 12 – paragraph 1
1. A person selling an 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 investment product and shall keep a record thereof, whereby the burden of proof shall rest with the investment product manufacturer.
Amendment 102 #
Proposal for a regulation
Article 12 – paragraph 2
Article 12 – paragraph 2
Amendment 111 #
Proposal for a regulation
Article 13 – paragraph 2 – introductory part
Article 13 – paragraph 2 – introductory part
2. The person selling an investment product shall provide the key information document to the retail investor in one of the following media that are accessible for the retail investor concerned:
Amendment 134 #
Proposal for a regulation
Recital 17
Recital 17
(17) As retail investors in general do not have close insight as to the internal procedures of investment product manufacturers, a reversal of the burden of proof should be established. The product manufacturer would have to prove that the key information document was drawn up in compliance with this Regulation. However, it would be for the retail investor to demonstrate that his loss has occurred due to the use of the information in the key information document because this matter falls within the direct personal sphere of the retail investor.
Amendment 137 #
Proposal for a regulation
Recital 19
Recital 19
(19) So that the retail investor is able to take an informed investment decision, persons selling 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 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 151 #
Proposal for a regulation
Article 26 – paragraph 2
Article 26 – paragraph 2
It shall apply from [twoone years after its entry into force].
Amendment 159 #
Proposal for a regulation
Recital 30
Recital 30
(30) In order to give 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 twoone years after the entry into force of this Regulation.
Amendment 171 #
Proposal for a regulation
Article 2 – paragraph 2
Article 2 – paragraph 2
Amendment 215 #
Proposal for a regulation
Article 4 – paragraph 1 – point a
Article 4 – paragraph 1 – point a
(a) '‘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 237 #
Proposal for a regulation
Article 5 – paragraph 1
Article 5 – paragraph 1
The investment product manufacturer shall draw up a key information document in accordance with the requirements laid down in this Regulation and the specimen contained in the annex for each investment product it produces and shall publish the document on a website of its choice and centrally on a website to be created by the ECB and the relevant national supervisory authority before the investment product can be sold to retail investors.
Amendment 249 #
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 product advertisements.
Amendment 258 #
Proposal for a regulation
Article 6 – paragraph 3 – introductory part
Article 6 – paragraph 3 – introductory part
3. The key information document shall be drawn up as a short document of a maximum of two DIN A4 pages which is:
Amendment 266 #
Proposal for a regulation
Article 6 – paragraph 3 – point b – point iii
Article 6 – paragraph 3 – point b – point iii
(iii) technical terms are avoided when everyday words can be used instead.
Amendment 274 #
Proposal for a regulation
Article 7 – paragraph 1
Article 7 – paragraph 1
The key information document shall be written in the official language, or one of the official languages of the Member State where the investment product is sold, or in a language accepted by the competent authorities of that Member State, or where it has been written in a different language, it shall be translated into one of these languages.
Amendment 285 #
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 and the fee paid to your intermediary. It is not marketing material. The information is required by law to help you understand the nature 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 invest. This document provides you with key information about this investment product. It is not marketing material.’
Amendment 338 #
Proposal for a regulation
Article 8 – paragraph 2 – point b – point vi a (new)
Article 8 – paragraph 2 – point b – point vi a (new)
(via) and the possibility of cancelling the investment product.
Amendment 360 #
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 scheme, and if so, which scheme;
Amendment 379 #
Proposal for a regulation
Article 8 – paragraph 2 – point e
Article 8 – paragraph 2 – point e
(e) under a section titled "What are the risks and what might I get back?", the risk and reward profile of the investment 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; the description of the risks should be clear and easy to understand;
Amendment 394 #
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, and the impact of these costs on the return;
Amendment 408 #
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 investment product, if this is relevant having regard to the nature of the product and the length of its track record;
Amendment 415 #
Proposal for a regulation
Article 8 – paragraph 2 – point h
Article 8 – paragraph 2 – point h
(h) for pension products, under a section titled "What might I get when I retire?", projections of possible future outcomes, explicitly subdivided into various development scenarios, including the worst-case scenario.
Amendment 421 #
Proposal for a regulation
Article 8 – paragraph 2 – point h a (new)
Article 8 – paragraph 2 – point h a (new)
(ha) under a section titled "What fee does my intermediary receive for services rendered?", an overview of the type and amount of fees paid or due to be paid to the intermediary;
Amendment 428 #
Proposal for a regulation
Article 8 – paragraph 3
Article 8 – paragraph 3
Amendment 439 #
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 investment product. The key information document shall prominently display a common symbol to distinguish the document from other documents; as a matter of principle, any negative information shall be presented in complete sentences before any positive information; price lists and conceptual abbreviations shall be prohibited.
Amendment 447 #
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 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 investment products and the capabilities of retail investors as well as the features of 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. The Commission shall further propose a traffic-light system that will make it easier to classify and categorise investment products as extremely risky, risky and less risky.
Amendment 492 #
Proposal for a regulation
Article 11 – paragraph 1
Article 11 – paragraph 1
1. Where 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 investor may claim from the investment product manufacturer damages for any loss caused to that retail investor through the use of the key information document and may, where appropriate, return the investment product and have the purchase price refunded.
Amendment 507 #
Proposal for a regulation
Article 11 – paragraph 2
Article 11 – paragraph 2
2. Whenre a retail investor demonstrates a loss resulting from the use of the information contained in the key information documenthas used the key information document and has suffered a loss, the investment product manufacturer has to prove that the key information document has been drawn up in compliance with Articles 6, 7 and 8 of this Regulation.
Amendment 518 #
Proposal for a regulation
Article 12 – paragraph 1
Article 12 – paragraph 1
1. A person selling an investment product to retail investors shall provide them with the key information document in good time and demonstrably before the conclusion of a transaction relating to the investment product; the burden of proof for this condition shall rest with the investment product manufacturer.
Amendment 524 #
Proposal for a regulation
Article 12 – paragraph 2
Article 12 – paragraph 2
Amendment 555 #
Proposal for a regulation
Article 13 – paragraph 2 – introductory part
Article 13 – paragraph 2 – introductory part
2. The person selling an investment product shall provide the key information document to the retail investor in one of the following media, which must be genuinely accessible for the retail investor:
Amendment 679 #
Proposal for a regulation
Article 26 – paragraph 2
Article 26 – paragraph 2
It shall apply from [twoone years after its entry into force].