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

Recorded Webinar: The roles of cloud and managed services in optimising enterprise data management

Cloud and managed services go hand-in-hand when it comes to modern enterprise data management (EDM), but how can the best solutions for the business be selected and implemented to ensure optimal data management based on accurate, consistent, and high-quality data, and delivering improved efficiency, better decisions and competitive advantage? This webinar will answer these questions,...

BLOG

Beyond Licence Fees: Key Considerations for Lowering TCO in Financial Data Management

By Neil Sandle, Chief Product Officer, Alveo. New technologies can significantly reduce the total cost of ownership (TCO) for financial data management platforms, with considerations going beyond the vendor licence fee and encompassing the full scope of TCO. Understanding your data management TCO requires evaluating key factors with solution providers, including the technology stack’s quality,...

EVENT

Data Management Summit London

Now in its 14th year, the Data Management Summit (DMS) in London brings together the European capital markets enterprise data management community, to explore how data strategy is evolving to drive business outcomes and speed to market in changing times.

GUIDE

Corporate Actions 2009 Edition

Rather than detracting attention away from corporate actions automation projects, the financial crisis appears to have accentuated the importance of the vital nature of this data. Financial institutions are more aware than ever before of the impact that inaccurate corporate actions data has on their bottom lines as a result of the increased focus on...