The Rejected Draft RTS

 Rejected on 14 September 2016 by the European Parliament

To access the final draft regulatory technical standards (JC/2016/21) dated 31 March 2016 (the "Final Draft RTS"), please click here.

On 30 June 2016, the European Commission adopted the final draft RTS in slightly amended form. Please click here to access the provisional text and annexes. Immediate points to note are as follows:

  • Article 2(3) - target market - has been amended to fall in line with that required under MiIFD2 as follows:

“The description of the type of retail investor to whom the PRIIP is intended to be marketed in the section entitled ‘What is this product?’ of the key information document shall include information on the target retail investors identified by the PRIIP manufacturer, in particular depending on the needs, characteristics and objectives of the type of client for whom the PRIIPs is compatible. This determination shall be based upon the ability of the retail investors to bear investment loss and their investment horizon preferences, their theoretical knowledge of, and past experience with PRIIPs, the financial markets as well as the needs, characteristics and objectives of potential end clients.

  • Annex V, Part 2 - Template C, the graph for the presentation of performance scenarios for exchange-traded derivatives has been removed. Performance scenarios for Category 1 PRIIPs shall however still be shown in the form of payoff structure graphs.
  • The deletion of the following wording “and similar instruments issued as transferable securities” in Annex II, Part 1, paragraph 4(b) in relation to Category 1 PRIIPs.

The European Commission adopted the revised Delegated Regulation together with revised Annexes on 08 March 2017. The final Delegated Regulation was subsequently published in the Official Journal (OJ) on 12 April 2017, entering into force on 02 May 2017 and becoming effective on 01 January 2018 (with the exception of Article 14(2) that applies from 31 December 2019).

A corrigendum to the Delegated Regulation was published in the OJ in May 2017. The corrigendum amends certain formula that appear in Annex II and Annex IV to the Delegated Regulation.

This document (and any information accessed through links in this document) is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from any action as a result of the contents of this document.