20.09.2016
Reuters
By Francesco Guarascio | BRUSSELS
Most European Union states want to postpone new EU rules meant to protect investors in life insurance, funds and other retail financial products because parts of the reform might be misleading.
In a joint statement, 23 of the 28 EU states have urged the European Commission to delay by one year the application of the new rules on so-called packaged retail and insurance-based investment products, or PRIIPs.
The new rules, due to come into force in January, cover a 10 trillion euro ($11.25 trillion) market and will force banks and insurers to use a standard "key information document", or KID.
The goal is to help consumers across the bloc for the first time to compare products in what are often national markets dominated by mutual funds.
The statement, which was dated Sept. 19 and distributed to journalists on Tuesday, came a week after the European Parliament rejected the new rules. Italy, Poland, Spain, Luxembourg and Slovakia did not sign it.
"We need to wait for the Council to formally make its position known later this month. We will take the Council and the European Parliament's positions on board to ensure the best possible course of action for consumers," said a Commission's spokeswoman.
But she added that the Commission was not in favor of delays in the application of the new rules.
The KID is supposed to be written on no more than three pages of jargon-free language and must accompany each savings product, derivatives and life insurance policy to show the buyer potential future performance and total costs.
European Parliament lawmakers said last week the proposed KID, which would replace a patchwork of documents given to customers for financial products, used an adverse scenario for a product's potential performance that was too optimistic.
The EU governments that signed the statement said a delay was needed "to provide sufficient time to clarify open questions". They want the proposed law to remain unchanged, but call for clarifications on the technical standards to apply it.
ALSO IN BUSINESS NEWS
Japanese stocks lift Asia, yen falls as BOJ overhauls policy
BOJ reboots policy to target interest rates, steps up inflation drive
"The suggested postponement of PRIIPS by one year seems reasonable. The EU Commission should now abstain from introducing PRIIPs without binding technical standards," said Sven Giegold, a German Green EU lawmaker. "This would risk legal uncertainty for financial providers."
EFAMA, which speaks for the mutual funds industry, and Insurance Europe representing insurers have both called for a postponement in the application date but not in the underlying law.
"Delaying implementation increasingly appears to be the only realistic option," said Cathy Pitt, an expert on investment funds at law firm CMS. "Implementation of the PRIIPs Regulation without the unifying technical standards would carry significant risk to both investors and firms," she added.
(Reporting by Francesco Guarascio; Editing by Richard Balmforth)
No comments yet.
- WHY IS THE U.S. STILL IN SYRIA? Iraq 21.09.2016
- DONALD TRUMP’S OPINION OF THE IRAQ WAR AS IT BEGAN WAS JUST LIKE THE AVERAGE AMERICAN’S Iraq 21.09.2016
- US, RUSSIA SAY SYRIA'S TRUCE NOT DEAD; MORE MEETINGS PLANNED Asia - Pacific 21.09.2016
-
IN MAIDEN UN SPEECH, MAY SAYS UK NOT TURNING AWAY FROM THE WORLD Europe - EU 21.09.2016
-
EU ACCEPTS BOSNIA AND HERZEGOVINA'S MEMBERSHIP APPLICATION The Balkans 21.09.2016
-
THE TRUTH WILL OUT -
Türk-Ermeni İlişkileri Üzerine Ömer Engin Lütem Konferansları 2023 -
Türk-Ermeni İlişkileri Üzerine Ömer Engin Lütem Konferansları 2022 -
RADİKAL ERMENİ UNSURLARCA GERÇEKLEŞTİRİLEN MEZALİMLER VE VANDALİZM -
PATRIOTISM PERVERTED -
MEN ARE LIKE THAT -
BAKÜ-TİFLİS-CEYHAN BORU HATTININ YAŞANAN TARİHİ -
INTERNATIONAL SCHOLARS ON THE EVENTS OF 1915 -
FAKE PHOTOS AND THE ARMENIAN PROPAGANDA -
ERMENİ PROPAGANDASI VE SAHTE RESİMLER -
Türk-Ermeni İlişkileri Üzerine Ömer Engin Lütem Konferansları 2021 -
A Letter From Japan - Strategically Mum: The Silence of the Armenians -
Japonya'dan Bir Mektup - Stratejik Suskunluk: Ermenilerin Sessizliği -
Türk-Ermeni Uyuşmazlığı Üzerine Ömer Engin Lütem Konferansları 2020 -
Anastas Mikoyan: Confessions of an Armenian Bolshevik -
Sovyet Sonrası Ukrayna’da Devlet, Toplum ve Siyaset - Değişen Dinamikler, Dönüşen Kimlikler -
Türk-Ermeni Uyuşmazlığı Üzerine Ömer Engin Lütem Konferansları 2019 -
Türk-Ermeni Uyuşmazlığı Üzerine Ömer Engin Lütem Konferansları 2018 -
Ermeni Sorunuyla İlgili İngiliz Belgeleri (1912-1923) - British Documents on Armenian Question (1912-1923) -
Turkish-Russian Academics: A Historical Study on the Caucasus -
Gürcistan'daki Müslüman Topluluklar: Azınlık Hakları, Kimlik, Siyaset -
Armenian Diaspora: Diaspora, State and the Imagination of the Republic of Armenia -
Ermeni Sorunu Temel Bilgi ve Belgeler (2. Baskı)
-
EU-TÜRKİYE COOPERATION IN CENTRAL ASIA AND SOUTH CAUCASUS: TOWARDS SUSTAINABLE ENGAGEMENT IN ENERGY AND CONNECTIVITY -
AVİM 2023 YILLIK RAPOR | ANNUAL REPORT -
ÇAĞDAŞ BATI AVRUPA AKADEMİ DÜNYASINDA IRKÇILIĞIN VE YABANCI DÜŞMANLIĞININ ARAŞTIRILMASININ ZORLUĞU: FRANSA ÖRNEĞİ
-
CONFERENCE TITLED “HUNGARY’S PERSPECTIVES ON THE TURKIC WORLD"