About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

PRIIPs Compliance Deadline Uncertain as Regulatory Technical Standards Rejected

Subscribe to our newsletter

The European Union’s upcoming regulation on Packaged Retail Investment and Insurance Products (PRIIPs), which requires banks and insurers to provide a Key Information Document (KID) to retail investors, has hit a bump in the road following the rejection of Level 2 Regulatory Technical Standards (RTS) for the regulation by the Economic and Monetary Affairs (ECON) Committee of the European Parliament.

While PRIIPS is due to come into force on 31 December 2016, the deadline could be compromised if the European Commission fails to provide amended RTS that meet the approval of the next European Parliament session taking place from September 12-15, 2016. Despite the uncertainty caused by the ECON Committee’s decision on the RTS, firms subject to the regulation are expected to continue to implement compliance solutions as the initial deadline is already very tight and any delay would provide breathing space and more development time, but no excess.

If RTS presented to the European Parliament later this month are again rejected, one possibility would be the introduction of the legislation without technical standards, although this is unlikely given scepticism among members of the European Parliament about how this could work. Alternatively, the legislation could be delayed until the RTS are agreed, but this would require the Commission to introduce new regulation, a process that some Commission representatives have said they do not want to trigger.

While there is speculation in the market about a delay to the PRIIPs KID deadline, solution providers say they, and their customers, are not slowing down their efforts to achieve compliance by December 31, 2016.

Phil Lynch, head of markets, products and strategy at SIX Financial Information, says: “There is no signal from the European Commission that it will move the deadline. We continue to feel a sense of urgency in getting our customers up and running. The vote on the RTS at the European Parliament later this month is an opportunity for more clarity, but our platform is ready to go and we can adjust it to meet the RTS when they are agreed.”

Silverfinch acknowledges the ECON Committee’s rejection of the RTS as ‘an honest realisation that what had been set out was inadequate’. It also notes that the December 31, 2016 deadline could mean PRIIPs manufacturers have to reduce the number of products they offer if they cannot match them up with KIDs before the deadline.

Ashley Smith, senior vice president of business development at Silverfinch, comments: “The rejection of the RTS doesn’t mean the regulation will be delayed, but it is a key piece and could cause a delay. Meantime, until we see if there will be a delay, Silverfinch and its clients are continuing to prepare for the regulation and our platform is in place. That said, there will be relief all round if there is a delay. The timeline is very tight and we should remember that it took the industry over a year to implement UCITS KIDs.”

Subscribe to our newsletter

Related content

WEBINAR

Upcoming Webinar: End-to-End Lineage for Financial Services: The Missing Link for Both Compliance and AI Readiness

8 October 2025 10:00am ET | 3:00pm London | 4:00pm CET Duration: 50 Minutes The importance of complete robust end-to-end data lineage in financial services and capital markets cannot be overstated. Without the ability to trace and verify data across its lifecycle, many critical workflows – from trade reconciliation to risk management – cannot be...

BLOG

A (Free) Practical AI Handbook for Capital Markets Professionals

Artificial Intelligence (AI) has swiftly transitioned from a promising concept into an operational reality across the capital markets. Senior executives, compliance leaders, and technology specialists are already well-acquainted with the potential of AI to streamline processes, enhance decision-making, and open new competitive opportunities. Yet, the current challenge isn’t about grasping AI’s transformative potential – it’s...

EVENT

AI in Capital Markets Summit London

The AI in Capital Markets Summit will explore current and emerging trends in AI, the potential of Generative AI and LLMs and how AI can be applied for efficiencies and business value across a number of use cases, in the front and back office of financial institutions. The agenda will explore the risks and challenges of adopting AI and the foundational technologies and data management capabilities that underpin successful deployment.

GUIDE

AI in Capital Markets: Practical Insight for a Transforming Industry – Free Handbook

AI is no longer on the horizon – it’s embedded in the infrastructure of modern capital markets. But separating real impact from inflated promises requires a grounded, practical understanding. The AI in Capital Markets Handbook 2025 provides exactly that. Designed for data-driven professionals across the trade life-cycle, compliance, infrastructure, and strategy, this handbook goes beyond...