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UK, other states seek delay in new EU insurance rules

UK, other states seek delay in new EU insurance rules

UK, other states seek delay in new EU insurance rules Britain and several other European Union member states want to postpone the implementation of new rules on packaged retail and insurance-based investment products (PRIIP).
 
Reuters reported that 23 of the 28 EU countries have released a joint statement urging the European Commission to delay by one year the application of the new rules, which are expected to come into force in January, 2017.
 
The new rules 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 delay calls followed the European Parliament’s rejection of the new rules last week. Lawmakers supported the view of the economic and monetary affairs committee, which called the PRIIP legislation “flawed” and “misleading.”
 
The EU states said a postponed implementation was needed “to provide sufficient time to clarify open questions,” Reuters reported.
 
They said the proposed law should remain unchanged, but there must be clarifications on the technical standards to apply it, the report added.
 
“The suggested postponement of PRIIPS by one year seems reasonable. The EU Commission should now abstain from introducing PRIIPs without binding technical standards,” Reuters quoted German EU lawmaker Sven Giegold as saying.
 
A spokeswoman for the European Commission said the body was not in favour of delays in the application of the new PRIIP rules.
 
“We need to wait for the Council to formally make its position known later this month,” the spokeswoman told Reuters.
 
“We will take the Council and the European Parliament's positions on board to ensure the best possible course of action for consumers,” she added.
 
 
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