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EU to delay new rules on insurance, financial products

EU to delay new rules on insurance, financial products

EU to delay new rules on insurance, financial products The European Parliament and European Commission are expected to announce today the one-year postponement of new regulation on Packaged Retail and Insurance-based Investment Products (PRIIPs).
 
Lawmakers and the Commission had agreed to delay the implementation of the PRIIPs regulation following their discussions on Monday, according to German politician and Member of the European Parliament (MEP) Sven Giegold, as reported by the FT Adviser.
 
“In order to provide a robust framework and better orientation for consumers and product providers, the original application date of the PRIIPS regulation (December 31 2016) should be postponed for 12 months,” Giegold was quoted as saying in the report.
 
The new regulation will force banks and insurers to use a standard “key information document” (KID), which should accompany savings products, derivatives and life insurance policies.
 
The KID is supposed to be written on no more than three pages of jargon-free language to enable consumers to compare the products’ potential future performance and total costs.
 
The European Parliament blocked the regulation’s passage in September as lawmakers called the measure “flawed” and “misleading”.
 
According to FT Adviser, the implementation delay will enable the European Commission to take the proposals to its technical advisers in the European Securities and Markets Authority and the European Insurance and Occupational Pensions Authority.
 
The European Parliament will then again scrutinise the new proposals.
 
“Depending in how far the review takes into account the European Parliament’s concerns, MEPs could give green light to this update in Spring 2017,” Giegold said.
 
 
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