Priips delay welcomed

The rejection of the ‘Priips’ retail investment regulations has been welcomed and one regulatory-watcher says a delay of a year could follow. The European Parliament’s committee on economic and monetary affairs last week rejected the regulatory technical standards for Priips – or the Packaged Retail and Insurance-based Investment Products regulations – which may reduce the chance of the rules coming into effect at the start of 2017. John Dowdall, managing director of Silverfinch, a regulatory technology firm, said: “The delay to the implementation of Priips is something that the retail sector, investment managers, and manufacturers will welcome as an honest realisation that what had been set out was inadequate.” The delay means there is “little chance” of the Priips rules coming into effect at the start of 2017. Instead, they are likely to be delayed by as much as a year, Dowdall said. He added that “many in the industry” had feared that the short timeframe between now and January meant that manufacturers would reduce the number of investments on offer due to the data collection burden.  “The extended timeframe will hopefully allow those who were in that situation to keep a full range of products,” Dowdall added. Andrew Glessing, head of compliance and regulation at asset management consultancy Alpha FMC, said: “With any piece of incoming regulation, it is crucial to regulated firms that the surrounding legislation is clear, accurate and can be relied on to work in practice. “Concerns have been raised, from asset managers to insurers, that Priips legislation and new-style KIDs [key investor documents] would not enhance investor communication as envisaged.” ©2016 funds europe

Executive Interviews

CEO INTERVIEW: Munro gains three-year track record

Mar 16, 2017

Aviva Investors’ annual results this month were the third set since Euan Munro took over as CEO. Nick Fitzpatrick speaks to him about the ‘Aims’ fund at the heart of the firm’s outcome strategy.

DISTRIBUTION INTERVIEW: Tales of the unexpected

Mar 16, 2017

Laurence Terryn, a fund selector at Candriam, tells David Stevenson how the twists and turns of the past year’s macro environment flavoured her approach to fund selection.

Roundtables

ASSET SERVICING ROUNDTABLE: Under pressure

Mar 07, 2017

Funds Europe speaks to leading Luxembourg industry figures about the growing regulatory demands on asset servicers and how to remain profitable in spite of major investments in technology.

SEC LENDING ROUNDTABLE: Both a borrower and a lender be

Jan 11, 2017

Industry heavyweights, including agent lenders, discuss issues affecting the securities lending sector such as regulation and the types of collateral being used.