ESAs Run Out of Options on PRIIPs KID as Draft RTS Has Been Submitted to the EU Commission
The ESAs (the trinity of the ECB, EIOPA & ESMA) relented to pressure from the EU Commission to submit the draft RTS on PRIIPs KID that failed ratification by EIOPA in July of 2020. The draft RTS (here) was submitted yesterday (February 3, 2021) in the face of a recent deadline issued by the Commission.
In July 2020, the ESAs had informed the Commission of the outcome of a review that had been carried out with respect to the PRIIPs KID. The review itself was in response to an ESA consultation paper on a draft RTS to improve the KID content, thus addressing some of the key criticisms of the document make-up. In July 2020, the draft RTS was adopted by the Boards of the EBA and ESMA, but did not receive a qualified majority in the Board of EIOPA.
On the 18th of December 2020, the Commission wrote to the ESAs (see letter here) inviting them “to jointly submit the draft RTS…amending the RTS laid down in the Delegated Regulation at the earliest opportunity, and at the latest within a period of six weeks“, referring to the need to make urgent amendments to European Commission’s Delegated Regulation (EU) 2017/653 (the “PRIIPs Regulation”).
The EIOPA Board of Supervisors subsequently re-considered the draft RTS. As explained in the ESA’s cover letter (here), while some national authorities continued to have reservations about the draft text, these concerns will be taken up in the broader review Level 1 review of PRIIPs Regulation. (See CSS’s earlier blog post here.)
With the ESAs submission of the draft RTS, the Commission can now adopt the Level 2 text. If adopted by the European Commission, the RTS would be subject to non-objection by the European Parliament and the Council of the European Union.
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