Important news on PRIIPs: EIOPA accepts RTS, EFAMA demands extended UCITS exemption
Despite some opposition within its ranks, at the Board of Supervisors meeting, the EIOPA adopted a draft amendment to the Regulatory Technical Standards (RTS) to the PRIIPs rules.
This action follows pressure from the European Commission to amend the RTS under the scrutiny procedure of the regulation.
The draft is now reviewed by the European Commission, and will be submitted for adoption by the EU Council and the European Parliament. If adopted, which seems probable, the revised KID will likely replace the UCITS KIID and must be presented to customers as from January 2022.
The timing is critical for all players, including the fund industry, who now have less than 11 months to implement “wide-ranging changes” on PRIIP. Because of this, the European Fund and Asset Management Association (EFAMA) insists on further 12-month extension of the UCITS exemption to ensure proper implementation and transition, as the current switch from UCITS KIID to the PRIIPs KID “would be too much of an operational undertaking in the timeframe provided.”
Additionally, there will likely be legal changes to the UCITS directive, which must happen this year to avoid the co-exist of two KI(I)Ds simultaneously.
SEQVOIA experts will continue to monitor developments closely. We have already prepared a transition plan to give our clients a smooth and easy conversion of UCITS KIID data and content into the PRIIPs KID framework. We will continue to provide you with in-depth feedback and analysis.
You may contact Nicolas Buck to discuss how we help our clients manage their obligations in an optimal way.