It’s settled – the cart goes before the horse…for PRIIPs KID
The investment fund industry is eagerly awaiting the result of a new vote in EIOPA on Level 2 changes for PRIIPs KID. This is after the EU’s policy makers indicated they were not interested in Level 1 reform being demanded after ESAs pushed back on signing off on the L2 RTS last year. In fact, the EU Commission’s Financial Services commissioner Mairead McGuinness seems quite determined “that national competent authorities will be able to overcome the difficulties and will adopt the draft amending RTS” and that the Commission was prepared to “take all necessary steps” to drive home the agenda.
A determination on the extension of the UCITS KIID grandfathering period that ends on 31 December 2021 will only be taken after the RTS has been signed off. With the Level 1 review provisionally slated for H1 2022, the Commission is quite literally insisting the proverbial cart (Level 2 – review) will go before the horse (Level 1 – review).
The Commission’s stance is certainly seen by many as not in the spirit of how things are done with Better Finance and the CFA Institute issuing a joint statement yesterday here calling on the Commission to change course.
For more information on starting your UCITS KIID to PRIIPs KID transition now, check out the UCITS to PRIIPs resource centre. You can also email our Fund Reporting regulatory experts at email@example.com who can guide you and help put together a project plan and automate the document production and distribution process.