Europe: Modernisation of the PRIIPs KID Considered by European Parliament
By: Áine Ní Riain and Shane Geraghty
On 20 March 2024, the European Parliament’s Committee on Economic and Monetary Affairs (ECON) voted in favour of draft modernisation measures for the PRIIPs Key Information Document (KID).
Amongst the proposed amendments to the PRIIPs Regulation contained in the latest draft regulation are a change in the length of the PRIIPs KID, from a three-page document to a four-page document. If adopted, the new rules would add a new “Product at a glance” section to the KID and, for funds disclosing pursuant to Article 8 and Article 9 of the Sustainable Finance Disclosure Regulation (SFDR), a new section, “How environmentally sustainable is this product?” The proposed rules would also see the development of an online comparison tool for PRIIPs developed by European Securities and Markets Authority (ESMA) and European Insurance and Occupational Pensions Authority (EIOPA) in cooperation with National Competent Authorities (NCAs).
The latest version of the draft regulation updating the PRIIPs Regulation (Regulation (EU) No 1286/2014) was published by ECON on 25 March in its Report on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 1286/2014 as regards the modernisation of the key information document (the Report). The Report included some amendments by ECON to the draft regulation received from the European Commission. The legislative proposal will next be discussed and voted upon by the European Parliament and Parliament will take its first reading position.