BETA


2021/0215(COD) Packaged retail and insurance-based investment products (PRIIPs): key information documents. Extension of the transitional arrangement

Progress: Procedure completed

RoleCommitteeRapporteurShadows
Lead ECON FERNÁNDEZ Jonás (icon: S&D S&D) PIETIKÄINEN Sirpa (icon: EPP EPP), YON-COURTIN Stéphanie (icon: Renew Renew), GIEGOLD Sven (icon: Verts/ALE Verts/ALE), BECK Gunnar (icon: ID ID), JURZYCA Eugen (icon: ECR ECR), GUSMÃO José (icon: GUE/NGL GUE/NGL)
Committee Opinion IMCO
Lead committee dossier:
Legal Basis:
TFEU 114-p1

Events

2021/12/20
   Final act published in Official Journal
2021/12/15
   CSL - Draft final act
Documents
2021/12/15
   CSL - Final act signed
2021/12/09
   EP/CSL - Act adopted by Council after Parliament's 1st reading
2021/11/23
   EP - Decision by Parliament, 1st reading
Details

The European Parliament adopted by 608 votes to 29, with 51 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 1286/2014 as regards the extension of the transitional arrangement for management companies, investment companies and persons advising on, or selling, units of undertakings for collective investment in transferable securities (UCITS) and non-UCITS.

The European Parliament's position adopted at first reading under the ordinary legislative procedure amends the Commission's proposal as follows:

As a reminder, Regulation (EU) No 1286/2014 provides for a transitional arrangement whereby management companies, investment companies and persons advising on, or selling, units of UCITS and non-UCITS within the meaning of Directive 2009/65/EC of the European Parliament and of the Council are temporarily exempted from the requirement to provide retail investors with a key information document. This arrangement currently applies until 31 December 2021.

In order to meet this need to give the parties concerned sufficient time to prepare for the obligation to produce a key information document, the Regulation as amended extends the duration of the transitional regime by twelve months, i.e. until 31 December 2022 (instead of 30 June 2022).

A new recital clarifies that the urgent need for a broader review of Regulation (EU) No 1286/2014 remains unchanged with a view to eliminating the current imperfections concerning, inter alia : (i) the need for a clearer definition of retail investors, (ii) the scope of products covered by the PRIIPs Regulation, (iii) the elimination of paper as the default option where a PRIIP is offered on a face-to-face basis, (iv) the concept of ‘successive transactions’ and (v) the provision of pre-contractual information to professional investors.

On the basis of this review, the Commission should submit a report to the European Parliament and the Council as a matter of urgency, accompanied, if appropriate, by a proposal to address the existing limitations with a view to improving retail investor confidence in financial markets.

Documents
2021/11/03
   EP - Committee report tabled for plenary, 1st reading
Details

The Committee on Economic and Monetary Affairs adopted the report by Jonás FERNÁNDEZ (S&D, ES) on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 1286/2014 as regards the extension of the transitional arrangement for management companies, investment companies and persons advising on, or selling, units of undertakings for collective investment in transferable securities (UCITS) and non-UCITS.

As a reminder, Article 32 of Regulation (EU) No 1286/2014 provides for a transitional arrangement whereby management companies, investment companies and persons advising on, or selling, units of UCITS and non-UCITS within the meaning of Directive 2009/65/EC of the European Parliament and of the Council are temporarily exempted from the requirement to provide retail investors with a KID. This arrangement currently applies until 31 December 2021.

The Commission proposes to extend the transitional regime under Regulation (EU) No 1286/2014 until 30 June 2022. This will give stakeholders time to prepare for the end of the transitional regime and to implement the other proposed measure (which provides for amendments to Delegated Regulation (EU) 2017/653).

In order to meet this need to give the parties concerned sufficient time to prepare for the obligation to produce a key information document, the competent committee proposes to extend the duration of the transitional regime by twelve months, i.e. until 31 December 2022 (instead of 30 June 2022).

Members introduced a new recital stating that the need for a broader review of Regulation (EU) No 1286/2014 and its urgency remains unchanged with a view to eliminating existing limitations including, inter alia, the need for a clearer definition of retail investors, the product scope of the PRIIPs Regulation, the elimination of paper by default where a PRIIP is offered on a face-to-face basis, the concept of successive transactions, the provision of pre-contractual information to professional investors.

On the basis of this review, the Commission should, in accordance with Regulation (EU) No 1286/2014, submit as a matter of urgency a report to the European Parliament and the Council, accompanied, where appropriate, by a proposal to address the existing limitations.

Documents
2021/10/25
   EP - Vote in committee, 1st reading
2021/10/07
   EP - Committee draft report
Documents
2021/09/13
   EP - Committee referral announced in Parliament, 1st reading
2021/09/01
   EP - FERNÁNDEZ Jonás (S&D) appointed as rapporteur in ECON
2021/07/15
   EC - Legislative proposal
Details

PURPOSE: to extend the transitional arrangement for management companies, investment companies and persons advising on, or selling, units of undertakings for collective investment in transferable securities (UCITS) and non-UCITS.

PROPOSED ACT: Regulation of the European Parliament and of the Council.

ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.

BACKGROUND: Regulation (EU) No 1286/2014 enables retail investors to better understand and compare packaged retail and insurance-based investment products (PRIIPs) and make better-informed investment decisions. To meet its objectives, Regulation requires PRIIPs manufacturers to comply with a uniform set of product disclosure requirements and provide retail investors with a key information document (KID) on each PRIIP they offer.

Article 32 of Regulation (EU) No 1286/2014 provides for a transitional arrangement whereby management companies, investment companies and persons advising on, or selling, units of UCITS and non-UCITS within the meaning of Directive 2009/65/EC of the European Parliament and of the Council are temporarily exempted from the requirement to provide retail investors with a KID. This arrangement currently applies until 31 December 2021.

Commission Delegated Regulation (EU) 2017/653 supplements Regulation (EU) No 1286/2014 by laying down regulatory technical standards with regard to the presentation, content and standard format of the key information document.

The Commission adopted Commission Delegated Regulation amending Delegated Regulation (EU) 2017/653 to make it easier for management companies, investment companies, and persons advising on, or selling, units of UCITS and non-UCITS. However, the date of application of Delegated Regulation has been set on 1 July 2022 to give those management companies, investment companies, and persons advising on, or selling, units of UCITS and non-UCITS sufficient time to prepare for the end of the transitional arrangement and thus for the obligation to draw up a key information document.

This proposal is accompanied by a proposal amending Directive 2009/65/EC as regards the use of key information documents by management companies of undertakings for collective investment in transferable securities (UCITS).

CONTENT: the Commission proposes to extend the transitional arrangement provided for in Regulation (EU) No 1286/2014 until 30 June 2022 . This will give stakeholders sufficient time to prepare for the end of the transitional arrangement and implement the other proposed measure (which provides for amendments to Delegated Regulation (EU) 2017/653).

Under this proposal, Regulation (EU) No 1286/2014 would apply to management companies, investment companies and persons advising on or selling units of UCITS and non-UCITS on the same date as the amendments to Directive 2009/65/EC and Delegated Regulation (EU) 2017/653, i.e. from 1 July 2022 .

Documents

Votes

Produits d’investissement packagés de détail et fondés sur l’assurance (PRIIP): documents d'informations clés. Prorogation du régime transitoire - Packaged retail and insurance-based investment products (PRIIPs): key information documents. Extension of the transitional arrangement - Verpackte Anlageprodukte für Kleinanleger und Versicherungsanlageprodukte (PRIIP): Basisinformationsblatt. Verlängerung der Übergangsregelung - A9-0297/2021 - Jonás Fernández - Proposition de la Commission et amendements #

2021/11/23 Outcome: +: 608, 0: 51, -: 29
DE IT PL ES RO NL FR HU CZ BE BG AT SE EL SK FI DK PT HR LT IE LV SI EE MT LU CY
Total
93
75
52
54
33
28
79
21
21
20
17
19
21
18
14
14
14
18
12
11
13
8
8
7
6
6
6
icon: PPE PPE
176

Hungary PPE

1

Denmark PPE

For (1)

1

Latvia PPE

2

Estonia PPE

For (1)

1

Malta PPE

2

Luxembourg PPE

2
2
icon: S&D S&D
138

Czechia S&D

For (1)

1

Greece S&D

For (1)

1

Lithuania S&D

2

Latvia S&D

2

Slovenia S&D

2

Estonia S&D

2

Luxembourg S&D

For (1)

1

Cyprus S&D

2
icon: Renew Renew
97

Italy Renew

3

Poland Renew

1

Hungary Renew

2

Austria Renew

For (1)

1
3

Finland Renew

3

Croatia Renew

For (1)

1

Lithuania Renew

1

Ireland Renew

2

Latvia Renew

For (1)

1

Slovenia Renew

2

Estonia Renew

3

Luxembourg Renew

2
icon: Verts/ALE Verts/ALE
72

Poland Verts/ALE

For (1)

1

Spain Verts/ALE

3

Netherlands Verts/ALE

3

Czechia Verts/ALE

3

Belgium Verts/ALE

3

Austria Verts/ALE

3

Sweden Verts/ALE

3

Finland Verts/ALE

3

Denmark Verts/ALE

2

Portugal Verts/ALE

1

Lithuania Verts/ALE

2

Ireland Verts/ALE

2

Latvia Verts/ALE

1

Luxembourg Verts/ALE

For (1)

1
icon: ECR ECR
63

Germany ECR

1

Romania ECR

1

Bulgaria ECR

2
3

Greece ECR

1

Slovakia ECR

For (1)

1

Croatia ECR

1

Lithuania ECR

1

Latvia ECR

2
icon: NI NI
36

Germany NI

Abstain (1)

2

Netherlands NI

1

Greece NI

Against (1)

3

Slovakia NI

2

Croatia NI

Abstain (1)

2

Lithuania NI

1
icon: ID ID
68

Czechia ID

For (1)

Abstain (1)

2

Austria ID

3

Finland ID

2

Denmark ID

For (1)

1

Estonia ID

For (1)

1
icon: The Left The Left
38

Netherlands The Left

Abstain (1)

1

Czechia The Left

Abstain (1)

1

Belgium The Left

Against (1)

1

Sweden The Left

Against (1)

1

Finland The Left

Abstain (1)

1

Denmark The Left

Abstain (1)

1

Portugal The Left

4

Ireland The Left

4

Cyprus The Left

2

History

(these mark the time of scraping, not the official date of the change)

events/6
date
2021-12-20T00:00:00
type
Final act published in Official Journal
docs
procedure/final
title
Regulation 2021/2259
url
https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=EN&numdoc=32021R2259
procedure/stage_reached
Old
Procedure completed, awaiting publication in Official Journal
New
Procedure completed
events/4
date
2021-12-09T00:00:00
type
Act adopted by Council after Parliament's 1st reading
body
EP/CSL
events/5
date
2021-12-15T00:00:00
type
Final act signed
body
CSL
procedure/stage_reached
Old
Awaiting Council's 1st reading position
New
Procedure completed, awaiting publication in Official Journal
docs/2
date
2021-11-23T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2021-0461_EN.html title: T9-0461/2021
type
Text adopted by Parliament, 1st reading/single reading
body
EP
events/3/summary
  • The European Parliament adopted by 608 votes to 29, with 51 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 1286/2014 as regards the extension of the transitional arrangement for management companies, investment companies and persons advising on, or selling, units of undertakings for collective investment in transferable securities (UCITS) and non-UCITS.
  • The European Parliament's position adopted at first reading under the ordinary legislative procedure amends the Commission's proposal as follows:
  • As a reminder, Regulation (EU) No 1286/2014 provides for a transitional arrangement whereby management companies, investment companies and persons advising on, or selling, units of UCITS and non-UCITS within the meaning of Directive 2009/65/EC of the European Parliament and of the Council are temporarily exempted from the requirement to provide retail investors with a key information document. This arrangement currently applies until 31 December 2021.
  • In order to meet this need to give the parties concerned sufficient time to prepare for the obligation to produce a key information document, the Regulation as amended extends the duration of the transitional regime by twelve months, i.e. until 31 December 2022 (instead of 30 June 2022).
  • A new recital clarifies that the urgent need for a broader review of Regulation (EU) No 1286/2014 remains unchanged with a view to eliminating the current imperfections concerning, inter alia : (i) the need for a clearer definition of retail investors, (ii) the scope of products covered by the PRIIPs Regulation, (iii) the elimination of paper as the default option where a PRIIP is offered on a face-to-face basis, (iv) the concept of ‘successive transactions’ and (v) the provision of pre-contractual information to professional investors.
  • On the basis of this review, the Commission should submit a report to the European Parliament and the Council as a matter of urgency, accompanied, if appropriate, by a proposal to address the existing limitations with a view to improving retail investor confidence in financial markets.
docs/3
date
2021-12-15T00:00:00
docs
title: 00071/2021/LEX
type
Draft final act
body
CSL
docs/2
date
2021-11-23T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2021-0461_EN.html title: T9-0461/2021
type
Text adopted by Parliament, 1st reading/single reading
body
EP
events/3
date
2021-11-23T00:00:00
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Decision by Parliament, 1st reading
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EP
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2021-0461_EN.html title: T9-0461/2021
forecasts
  • date: 2021-11-23T00:00:00 title: Vote in plenary scheduled
procedure/stage_reached
Old
Awaiting Parliament's position in 1st reading
New
Awaiting Council's 1st reading position
forecasts/0
date
2021-11-23T00:00:00
title
Vote in plenary scheduled
forecasts/0
date
2021-11-22T00:00:00
title
Indicative plenary sitting date
docs/2
date
2021-11-03T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/A-9-2021-0297_EN.html title: A9-0297/2021
type
Committee report tabled for plenary, 1st reading/single reading
body
EP
events/2/summary
  • The Committee on Economic and Monetary Affairs adopted the report by Jonás FERNÁNDEZ (S&D, ES) on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 1286/2014 as regards the extension of the transitional arrangement for management companies, investment companies and persons advising on, or selling, units of undertakings for collective investment in transferable securities (UCITS) and non-UCITS.
  • As a reminder, Article 32 of Regulation (EU) No 1286/2014 provides for a transitional arrangement whereby management companies, investment companies and persons advising on, or selling, units of UCITS and non-UCITS within the meaning of Directive 2009/65/EC of the European Parliament and of the Council are temporarily exempted from the requirement to provide retail investors with a KID. This arrangement currently applies until 31 December 2021.
  • The Commission proposes to extend the transitional regime under Regulation (EU) No 1286/2014 until 30 June 2022. This will give stakeholders time to prepare for the end of the transitional regime and to implement the other proposed measure (which provides for amendments to Delegated Regulation (EU) 2017/653).
  • In order to meet this need to give the parties concerned sufficient time to prepare for the obligation to produce a key information document, the competent committee proposes to extend the duration of the transitional regime by twelve months, i.e. until 31 December 2022 (instead of 30 June 2022).
  • Members introduced a new recital stating that the need for a broader review of Regulation (EU) No 1286/2014 and its urgency remains unchanged with a view to eliminating existing limitations including, inter alia, the need for a clearer definition of retail investors, the product scope of the PRIIPs Regulation, the elimination of paper by default where a PRIIP is offered on a face-to-face basis, the concept of successive transactions, the provision of pre-contractual information to professional investors.
  • On the basis of this review, the Commission should, in accordance with Regulation (EU) No 1286/2014, submit as a matter of urgency a report to the European Parliament and the Council, accompanied, where appropriate, by a proposal to address the existing limitations.
docs/2
date
2021-11-03T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/A-9-2021-0297_EN.html title: A9-0297/2021
type
Committee report tabled for plenary, 1st reading/single reading
body
EP
events/2/docs
  • url: https://www.europarl.europa.eu/doceo/document/A-9-2021-0297_EN.html title: A9-0297/2021
events/2
date
2021-11-03T00:00:00
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EP
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date
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Rules of Procedure EP 159
docs/1
date
2021-10-07T00:00:00
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url: https://www.europarl.europa.eu/doceo/document/ECON-PR-697630_EN.html title: PE697.630
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Committee draft report
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EP
docs/1
date
2021-09-23T00:00:00
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title: PE697.630
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Committee draft report
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  • date: 2021-11-22T00:00:00 title: Indicative plenary sitting date
docs/1
date
2021-09-23T00:00:00
docs
title: PE697.630
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Committee draft report
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GUSMÃO José
group
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abbr
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  • date: 2021-09-13T00:00:00 type: Committee referral announced in Parliament, 1st reading body: EP
procedure/dossier_of_the_committee
  • ECON/9/06884
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shadows
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committees/0/shadows
  • name: JURZYCA Eugen group: European Conservatives and Reformists Group abbr: ECR
committees/1/opinion
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  • name: European Economic and Social Committee
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  • body: EC dg: Financial Stability, Financial Services and Capital Markets Union commissioner: MCGUINNESS Mairead
docs/0/summary
  • PURPOSE: to extend the transitional arrangement for management companies, investment companies and persons advising on, or selling, units of undertakings for collective investment in transferable securities (UCITS) and non-UCITS.
  • PROPOSED ACT: Regulation of the European Parliament and of the Council.
  • ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.
  • BACKGROUND: Regulation (EU) No 1286/2014 enables retail investors to better understand and compare packaged retail and insurance-based investment products (PRIIPs) and make better-informed investment decisions. To meet its objectives, Regulation requires PRIIPs manufacturers to comply with a uniform set of product disclosure requirements and provide retail investors with a key information document (KID) on each PRIIP they offer.
  • Article 32 of Regulation (EU) No 1286/2014 provides for a transitional arrangement whereby management companies, investment companies and persons advising on, or selling, units of UCITS and non-UCITS within the meaning of Directive 2009/65/EC of the European Parliament and of the Council are temporarily exempted from the requirement to provide retail investors with a KID. This arrangement currently applies until 31 December 2021.
  • Commission Delegated Regulation (EU) 2017/653 supplements Regulation (EU) No 1286/2014 by laying down regulatory technical standards with regard to the presentation, content and standard format of the key information document.
  • The Commission adopted Commission Delegated Regulation amending Delegated Regulation (EU) 2017/653 to make it easier for management companies, investment companies, and persons advising on, or selling, units of UCITS and non-UCITS. However, the date of application of Delegated Regulation has been set on 1 July 2022 to give those management companies, investment companies, and persons advising on, or selling, units of UCITS and non-UCITS sufficient time to prepare for the end of the transitional arrangement and thus for the obligation to draw up a key information document.
  • This proposal is accompanied by a proposal amending Directive 2009/65/EC as regards the use of key information documents by management companies of undertakings for collective investment in transferable securities (UCITS).
  • CONTENT: the Commission proposes to extend the transitional arrangement provided for in Regulation (EU) No 1286/2014 until 30 June 2022 . This will give stakeholders sufficient time to prepare for the end of the transitional arrangement and implement the other proposed measure (which provides for amendments to Delegated Regulation (EU) 2017/653).
  • Under this proposal, Regulation (EU) No 1286/2014 would apply to management companies, investment companies and persons advising on or selling units of UCITS and non-UCITS on the same date as the amendments to Directive 2009/65/EC and Delegated Regulation (EU) 2017/653, i.e. from 1 July 2022 .