September 25, 2020

Volume X, Number 269

September 24, 2020

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September 23, 2020

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September 22, 2020

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ESAs Notify the European Commission About the Outcome of the Review of the PRIIPS Key Information Document

On July 21, the European Supervisory Authorities (ESAs) (consisting of the European Securities and Markets Authority (ESMA), the European Insurance and Occupational Pensions Authority (EIOPA) and the European Banking Authority (EBA)) informed the European Commission in a letter of the outcome of the review conducted by the ESAs of the key information document (KID) for packaged retail and insurance-based investment products (PRIIPs).

This follows the ESAs’ consultation paper published on October 16, 2019 on draft regulatory technical standards (RTS) to amend the technical rules on the presentation, content, review and revision of KIDs (Delegated Regulation (EU) 2017/653 (PRIIPs Delegated Regulation)).

The ESAs’ review of the PRIIPs Delegated Regulation aimed to address the main regulatory issues that had been identified since the implementation of the KID, in particular regarding the information on performance and costs, and to allow the appropriate application of the KID by undertakings for collective investment in transferable securities.

Having reviewed a draft final report following the public consultation in June 2020, the three Boards of Supervisors of the ESAs determined that the report contained balanced and proportionate final proposals, which would allow the ESAs to meet their main policy objectives while remaining in line with the PRIIPs level 1 framework. The EBA and ESMA Boards adopted the draft RTS, but at the EIOPA Board it did not receive the support of a qualified majority, although a large number of members agreed with the draft.

As the draft RTS was not adopted by all three ESA Boards, the ESAs have confirmed that they are not in a position to formally submit an RTS to the European Commission. However, for transparency purposes, their draft final report is attached as an annex to the joint letter.

The letter is available here.

©2020 Katten Muchin Rosenman LLPNational Law Review, Volume X, Number 206


About this Author

Carolyn H. Jackson, International Attorney, Katten Muchin law firm

Carolyn Jackson is a partner in Katten Muchin Rosenman UK LLP and is a Registered Foreign Lawyer. She provides US financial regulatory legal advice to a broad range of market participants, including commercial banks, investment banks, investment managers, broker-dealers, electronic trading platforms, clearinghouses, trade associations and over-the-counter derivatives service providers.

Carolyn guides clients in the structuring and offering of complex securities, commodities and derivatives transactions and in complying with US securities and commodities laws...

+44 0 20 7776 7625
Nathaniel Lalone, Katten Muchin Law Firm, Financial Institutions Attorney
Senior Associate

Nathaniel Lalone, a partner at Katten Muchin Rosenman UK LLP, has a broad range of experience in the regulation of financial products and financial markets, and frequently provides regulatory and compliance advice to trading venues, clearing houses and buy-side firms active in the over-the-counter (OTC) derivatives, futures and securities markets. He is actively involved in advising clients on the implementation of MiFID 2 and MiFIR in the European Union as well as the international reach of US financial services regulation. He also has significant experience with structuring and documentation relating to OTC derivatives and structured products.

Prior to joining Katten, Nathaniel was a member of the US Regulatory and the Derivatives and Structured Finance practices at Allen & Overy LLP.

+44 0 20 7776 7629
Neil Robson, private equity fund managers counselor, Katten Law Firm, London

Neil Robson, a regulatory and compliance partner with Katten Muchin Rosenman LLP, focuses his practice on counseling hedge and private equity fund managers and other investment advisers on operational, regulatory and compliance issues. He regularly addresses Financial Conduct Authority (FCA) and EU authorization and compliance under both the EU Alternative Investment Fund Managers Directive (AIFM Directive) and MiFID, cross-border issues in the financial services sector, market abuse, anti-money laundering and regulatory capital requirements, formations and buyouts of...