Regulation (EU) No. 1286/2014
 Regulation (EU) No. 1286/2014 |
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|---|---|
| Title: | Regulation (EU) No. 1286/2014 of the European Parliament and of the Council of 26 November 2014 on key information sheets for packaged retail investment products and insurance investment products (PRIIP) |
| Designation: (not official) |
PRIIP regulation |
| Scope: | EEA |
| Legal matter: | Securities law |
| Basis: | TFEU , in particular Article 114 |
| Procedure overview: |
European Commission European Parliament IPEX Wiki |
| To be used from: | December 31, 2016 |
| Reference: | OJ L 352 of 9.12.2014, pp. 1–23 |
| Full text |
Consolidated version (not official) basic version |
| Regulation has entered into force and is applicable. | |
| Please note the information on the current version of legal acts of the European Union ! | |
The Regulation (EU) no. 1286/2014 with long names Regulation (EU) no. 1286/2014 of the European Parliament and of the Council of 26 November 2014, key information documents for packaged investment products to retail investors and insurance investment products is an EU regulation to improve investor protection and thus to strengthen the confidence of small investors in the financial market . For the packaged retail and insurance-based investment products , the English term is packaged retail and insurance-based investment products ; its abbreviation PRIIP explains the short term PRIIP regulation , which is often used in German .
The ordinance came into force at the end of 2014 and has been applicable since January 1, 2018. The date of entry into force was postponed by one year at the request of the EU Commission by the EU Parliament .
For packaged and insurance-based investment products, small investors should receive the information they need to make an informed investment decision by means of standardized key information documents (BIB for short, KID for short). Furthermore, the comparability of such investment products with one another should be increased.
Details
The main packaged retail investment products and insurance investment products (PRIIP) include:
- Structured financial products, such as insurance , securities and banking products, in which warrants are included,
- Financial products whose value is derived from reference values such as shares or exchange rates ( derivatives ),
- Investment funds ( closed and open ),
- Insurance products with an investment character, such as capital-forming and unit-linked life insurance and hybrid products,
- Instruments issued by special purpose vehicles.
Basic information sheets (BIB) should only contain essential information about the financial product described, but they should remain legible for the customer and not be too extensive (maximum three A4 pages). In particular, it should contain:
- Information on the type and characteristics of the product and its target market
- Information about the possibility of capital loss
- Information on the cost and risk profile of the product
- Relevant information on performance
- Other specific information that may be necessary to understand the characteristics of individual product types.
The manufacturer of the financial product is responsible for creating a BIB.
With a view to investor protection in particular, the PRIIP regulation has corresponding provisions in the Financial Market Directive and the Financial Market Regulation .
Regulatory and technical standards
In accordance with Article 30, the European Commission publishes regulatory and technical standards (RTS) as delegated legal acts in order to further specify the contents of the key information sheets as well as the calculation and presentation methods. The proposed version of March 31, 2016 was rejected by the EU Parliament on September 14, 2016. The EU Commission then asked for the entry into force of the directive (Article 34) to be postponed.
Impact and Criticism
According to a study by the market watchdog at the Hamburg Consumer Center, responsible for insurance , the basic information sheets (BIB) for unit-linked pension insurance do not provide the consumer with sufficient guidance. In 2018, the consumer advocates examined a total of 26 BIBs on unit-linked pension insurance from various providers. You criticize inaccurate information and the lack of comparability of the BIB within a product segment.
Most noticeable for private investors is an indirect effect of the regulation, with the result that financial institutions are prohibited from allowing small investors to acquire funds from countries outside the EU, even in the context of execution-only transactions. Theoretically, such funds should only be traded if the provider provides a key information sheet, but providers outside the EU hardly ever do this due to a lack of economic interest. The trade press has therefore mainly understood the regulation as an economic development measure that has the effect that the European ETF market is strengthened against the US competition.
Individual evidence
- ↑ europa.eu
- ^ Minutes of the plenary session
- ↑ BaFin - Key Information Sheet: PRIIPs Regulation - New EU-wide standard for product information for consumers. In: www.bafin.de. Retrieved April 18, 2016 .
- ^ Regulatory Technical Standards on the content and presentation of the KIDs for PRIIPs - European Banking Authority. In: www.eba.europa.eu. Retrieved April 18, 2016 .
- ↑ MiFID II and PRIIPS. In: www.cva-services.de. Retrieved April 18, 2016 .
- ↑ Final Draft RTS , JC 2016/21 of March 31, 2016.
- ^ RTS rejection
- ↑ marktwaechter.de: Market watchers examine basic information sheets from capital-forming insurance companies
- ↑ a b Cecile Vannucci: European Investors Are Now Blocked From Investing in One of the Most Popular ETFs. In: bloomberg.com . February 23, 2018, accessed January 8, 2020 .
- ↑ Dominique Riedl: ETFs from the USA: can no longer be bought from many online brokers. In: JustETF. March 1, 2018, accessed June 7, 2020 .
- ↑ Dominique Riedl: US-domiciled ETFs: why they are no longer available from many online brokers. In: JustETF. March 28, 2018, accessed June 7, 2020 .
Web links
- Regulation (EU) No. 1286/2014 - full text of the directive on EUR-Lex
