BETA


2021/0219(COD) Undertakings for collective investment in transferable securities (UCITS): the use of key information documents

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)
Lead committee dossier:
Legal Basis:
TFEU 053-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 609 votes to 6, with 73 abstentions, a legislative resolution on the proposal for a directive of the European Parliament and of the Council 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).

The European Parliament's position adopted at first reading under the ordinary legislative procedure amends the Commission 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.

As things stand, as of 1 July 2022 retail investors in UCITS would receive both a key information document in accordance with Regulation (EU) No 1286/2014 and key investor information in accordance with Directive 2009/65/EC.

In order to avoid a situation where retail investors receive two different pre-contractual disclosure documents in respect of the same UCITS from 1 January 2023 and 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 until 31 December 2022 (instead of 30 June 2022).

For investors other than retail investors, investment companies and management companies should continue to draw up key investor information in accordance with Directive 2009/65/EC, unless they decide to draw up a key information document as set out in Regulation (EU) No 1286/2014. In such cases, investment companies and management companies should not be required by competent authorities to provide the key investor information, and only the key investor document should be provided to those investors.

Member States should communicate to the Commission the text of the main measures of national law which they adopt in the field covered by this Directive.

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 directive of the European Parliament and of the Council 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).

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

As things stand, as of 1 July 2022 retail investors in UCITS would receive both a key information document in accordance with Regulation (EU) No 1286/2014 and key investor information in accordance with Directive 2009/65/EC. It is desirable to avoid a situation where retail investors receive two different pre-contractual disclosure documents in respect of the same UCITS.

Therefore, in order to avoid this situation and 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 until 1 January 2023 (instead of 1 July 2022).

Lastly, the report proposes that Member States should communicate to the Commission the text of the main measures of national law which they adopt in the field covered by this Directive.

Documents
2021/10/29
   EP - Vote in committee, 1st reading
2021/10/14
   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 amend Directive 2009/65/EC as regards the use of key information documents by management companies of undertakings for collective investment in transferable securities (UCITS).

PROPOSED ACT: Directive 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: according to Directive 2009/65/EC , each undertaking for collective investment in transferable securities (UCITS) must provide ‘key investor information’ to help investors understand the essential characteristics of the UCITS and make informed investment decisions.

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 are temporarily exempted from the requirement to provide retail investors with a key information document. The arrangement currently applies until 31 December 2021.

The Commission presented a proposal for a Regulation to extend the transitional arrangement provided for in Regulation (EU) No 1286/2014 until 30 June 2022. This will give stakeholders time to prepare for the end of the transitional arrangement and to implement the other proposed measure [which provides for amendments to Delegated Regulation (EU) 2017/653] from 1 July 2022.

As things stand, as of 1 July 2022 retail investors in UCITS would receive both a key information document in accordance with Regulation (EU) No 1286/2014 and key investor information in accordance with Directive 2009/65/EC. It is desirable to avoid a situation where retail investors receive two different pre-contractual disclosure documents in respect of the same UCITS.

The proposed measures are necessary to reduce the consequences of parallel application of Directive 2009/65/EC and Regulation (EU) No 1286/2014.

CONTENT: this proposal inserts a new article in Directive 2009/65/EC which lays down in a clear, precise and unconditional manner that, where a key information document is drawn up, provided, revised and translated for a UCITS pursuant to Regulation (EU) No 1286/2014, it should be considered as satisfying the requirements applicable to key investor information for the purposes of that Directive.

Documents

Votes

Organismes de placement collectif en valeurs mobilières (OPCVM): utilisation de documents d'informations clés - Undertakings for collective investment in transferable securities (UCITS): the use of key information documents - Verwaltungsgesellschaften von Organismen für gemeinsame Anlagen in Wertpapieren (OGAW): Verwendung von Basisinformationsblättern - A9-0301/2021 - Jonás Fernández - Proposition de la Commission et amendements #

2021/11/23 Outcome: +: 609, 0: 73, -: 6
DE IT PL FR ES RO NL HU CZ BE BG AT SE EL SK FI DK PT HR LT IE LV SI EE MT LU CY
Total
93
75
52
79
54
33
28
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: ID ID
68

Czechia ID

2

Austria ID

3

Finland ID

2

Denmark ID

For (1)

1

Estonia ID

For (1)

1
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: 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
Directive 2021/2261
url
https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=EN&numdoc=32021L2261
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
2021-12-15T00:00:00
docs
title: 00072/2021/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-9-2021-0462_EN.html title: T9-0462/2021
type
Text adopted by Parliament, 1st reading/single reading
body
EP
events/3/summary
  • The European Parliament adopted by 609 votes to 6, with 73 abstentions, a legislative resolution on the proposal for a directive of the European Parliament and of the Council 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).
  • The European Parliament's position adopted at first reading under the ordinary legislative procedure amends the Commission 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.
  • As things stand, as of 1 July 2022 retail investors in UCITS would receive both a key information document in accordance with Regulation (EU) No 1286/2014 and key investor information in accordance with Directive 2009/65/EC.
  • In order to avoid a situation where retail investors receive two different pre-contractual disclosure documents in respect of the same UCITS from 1 January 2023 and 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 until 31 December 2022 (instead of 30 June 2022).
  • For investors other than retail investors, investment companies and management companies should continue to draw up key investor information in accordance with Directive 2009/65/EC, unless they decide to draw up a key information document as set out in Regulation (EU) No 1286/2014. In such cases, investment companies and management companies should not be required by competent authorities to provide the key investor information, and only the key investor document should be provided to those investors.
  • Member States should communicate to the Commission the text of the main measures of national law which they adopt in the field covered by this Directive.
docs/2
date
2021-11-23T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2021-0462_EN.html title: T9-0462/2021
type
Text adopted by Parliament, 1st reading/single reading
body
EP
events/3
date
2021-11-23T00:00:00
type
Decision by Parliament, 1st reading
body
EP
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2021-0462_EN.html title: T9-0462/2021
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-9-2021-0301_EN.html title: A9-0301/2021
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 directive of the European Parliament and of the Council 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).
  • 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 presented a proposal for a Regulation to extend the transitional arrangement provided for in Regulation (EU) No 1286/2014 until 30 June 2022. This will give stakeholders time to prepare for the end of the transitional arrangement and to implement the other proposed measure (which provides for amendments to Delegated Regulation (EU) 2017/653).
  • As things stand, as of 1 July 2022 retail investors in UCITS would receive both a key information document in accordance with Regulation (EU) No 1286/2014 and key investor information in accordance with Directive 2009/65/EC. It is desirable to avoid a situation where retail investors receive two different pre-contractual disclosure documents in respect of the same UCITS.
  • Therefore, in order to avoid this situation and 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 until 1 January 2023 (instead of 1 July 2022).
  • Lastly, the report proposes that Member States should communicate to the Commission the text of the main measures of national law which they adopt in the field covered by this Directive.
docs/2
date
2021-11-03T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/A-9-2021-0301_EN.html title: A9-0301/2021
type
Committee report tabled for plenary, 1st reading/single reading
body
EP
events/2/docs
  • url: https://www.europarl.europa.eu/doceo/document/A-9-2021-0301_EN.html title: A9-0301/2021
events/2
date
2021-11-03T00:00:00
type
Committee report tabled for plenary, 1st reading
body
EP
procedure/stage_reached
Old
Awaiting committee decision
New
Awaiting Parliament's position in 1st reading
events/1
date
2021-10-29T00:00:00
type
Vote in committee, 1st reading
body
EP
procedure/Other legal basis
Rules of Procedure EP 159
docs/1
date
2021-10-14T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/ECON-PR-697633_EN.html title: PE697.633
type
Committee draft report
body
EP
forecasts
  • date: 2021-11-22T00:00:00 title: Indicative plenary sitting date
committees/0/shadows/5
name
GUSMÃO José
group
The Left group in the European Parliament - GUE/NGL
abbr
GUE/NGL
events
  • date: 2021-09-13T00:00:00 type: Committee referral announced in Parliament, 1st reading body: EP
procedure/dossier_of_the_committee
  • ECON/9/06883
procedure/stage_reached
Old
Preparatory phase in Parliament
New
Awaiting committee decision
committees/0
type
Responsible Committee
body
EP
committee_full
Economic and Monetary Affairs
committee
ECON
associated
False
rapporteur
name: FERNÁNDEZ Jonás date: 2021-09-01T00:00:00 group: Group of Progressive Alliance of Socialists and Democrats abbr: S&D
shadows
committees/0
type
Responsible Committee
body
EP
committee_full
Economic and Monetary Affairs
committee
ECON
associated
False
shadows
name: JURZYCA Eugen group: European Conservatives and Reformists Group abbr: ECR
committees/0/shadows
  • name: JURZYCA Eugen group: European Conservatives and Reformists Group abbr: ECR
commission
  • body: EC dg: Financial Stability, Financial Services and Capital Markets Union commissioner: MCGUINNESS Mairead
docs/0/summary
  • PURPOSE: to amend Directive 2009/65/EC as regards the use of key information documents by management companies of undertakings for collective investment in transferable securities (UCITS).
  • PROPOSED ACT: Directive 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: according to Directive 2009/65/EC , each undertaking for collective investment in transferable securities (UCITS) must provide ‘key investor information’ to help investors understand the essential characteristics of the UCITS and make informed investment decisions.
  • 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 are temporarily exempted from the requirement to provide retail investors with a key information document. The arrangement currently applies until 31 December 2021.
  • The Commission presented a proposal for a Regulation to extend the transitional arrangement provided for in Regulation (EU) No 1286/2014 until 30 June 2022. This will give stakeholders time to prepare for the end of the transitional arrangement and to implement the other proposed measure [which provides for amendments to Delegated Regulation (EU) 2017/653] from 1 July 2022.
  • As things stand, as of 1 July 2022 retail investors in UCITS would receive both a key information document in accordance with Regulation (EU) No 1286/2014 and key investor information in accordance with Directive 2009/65/EC. It is desirable to avoid a situation where retail investors receive two different pre-contractual disclosure documents in respect of the same UCITS.
  • The proposed measures are necessary to reduce the consequences of parallel application of Directive 2009/65/EC and Regulation (EU) No 1286/2014.
  • CONTENT: this proposal inserts a new article in Directive 2009/65/EC which lays down in a clear, precise and unconditional manner that, where a key information document is drawn up, provided, revised and translated for a UCITS pursuant to Regulation (EU) No 1286/2014, it should be considered as satisfying the requirements applicable to key investor information for the purposes of that Directive.