Efama raises Prips worries

European parliament2Members of the European Parliament have been told they risk delaying the introduction of a regulatory regime for packaged retail investment products (Prips).

The European Fund and Asset Management Association (Efama) has written to members saying discussions about the introduction of rules surrounding Prips are diverging from the original regulatory approach.

Further, Efama says the discussions are not based on impact assessments and also include areas that have not been consulted on with the industry.

These developments “threaten to undermine the feasibility of the whole initiative”, Efama says.

Some 700 proposed amendments to the regulation covering Prips have caused divergences in parliamentary debate, says the funds association, adding that this makes it unlikely that a compromise will be reached in a reasonable timeframe.

A spokesperson for the parliament was not immediately available for comment.

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