Legal provisions of COM(2023)278 - Amendment of Regulation (EU) No 1286/2014 as regards the modernisation of the key information document - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2023)278 - Amendment of Regulation (EU) No 1286/2014 as regards the modernisation of the key information document. |
|---|---|
| document | COM(2023)278 |
| date | May 24, 2023 |
Article 1
Amendments to Regulation (EU) 1286/2014
Regulation (EU) 1286/2014 is amended as follows:
(1) Article 2(2) is amended as follows:
(a) point (d) is replaced by the following:
‘(d) securities as referred to in Article 1(2), points (b) to (e), and point (g) of Regulation (EU) 2017/1129 of the European Parliament and the Council*;’;
(b) the following point (h) is added:
‘(h) pension products, including immediate annuities without a redemption phase, which, under national law, are recognised as having the primary purpose of providing the investor with an income in retirement and which entitle the investor to certain benefits;’;
* Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market, and repealing Directive 2003/71/EC (OJ L 168, 30.6.2017, p. 12).;
(2) in Article 3, paragraph 1 is replaced by the following :
‘1. Where PRIIPs manufacturers subject to this Regulation are also subject to Regulation (EU) 2017/1129, this Regulation and Regulation (EU) 2017/1129 shall both apply.’;
(3) Article 4 is amended as follows:
(a) in point (1), the following text is added after the last sentence:
“, except if those fluctuations are only attributed to the inclusion of a make whole clause as defined in Article 4(1)(44a) of Directive 2014/65/EU.”
(b) The following point (7a) is inserted:
‘(7a) ‘electronic format’ means any durable medium other than paper;’;
(4) in Article 6 paragraph 3 is replaced by the following:
“3. By way of derogation from paragraph 2, where a PRIIP offers the retail investor a range of options for investments, such that all information required in Article 8(3) with regard to each investment option cannot be provided within a single, concise stand-alone document, the key information document shall provide a generic description of the underlying investment options, and the costs of the PRIIP other than the costs for the investment option, provided that:
(a) PRIIPs manufacturers provide investors with tools adapted to retail investors that facilitate research and comparison among the different investment options, including on costs;
(b) Retail investors have easy access to the pre-contractual information documentation relating to the investment products backing the underlying investment options;
(c) PRIIPs manufacturers provide investors, upon their request and in good time before retail investors are bound by any contract or offer to invest in a given investment option, the complete costs of the PRIIP relating to this investment option.”
(5) Article 8 is amended as follows:
(a) in paragraph 3, point (aa) is added:
‘(aa) under a section titled ‘Product at a glance’ a dashboard with summarised information about all of the following:
(i) the type of the PRIIP, as referred to in point (c)(i);
(ii) the summary risk indicator referred to in point (d)(i);
(iii) the total costs of the PRIIP;
(iv) the recommended holding period referred to in point (g)(ii);
(v) whether the PRIIP offers the insurance benefits referred to in point (c) (iv);’
(b) in paragraph 3, point (b) is deleted.
(c) in paragraph 3, point (c), point (ii) is replaced by the following:
“(ii) the PRIIP’s financial objectives and the means for achieving those objectives, and in particular whether those objectives will be achieved by means of direct or indirect exposure to the underlying investment assets, including all of the following information:
(1) a description of the underlying instruments or reference values;
(2) a specification of the markets the PRIIP invests in;
(3) information about how the return is determined;’;
(d) the following point (ga) is inserted:
‘(ga) for PRIIPs on which financial market participants are to disclose pre-contractual information pursuant to Regulation (EU) 2019/2088 of the European Parliament and of the Council** and Commission Delegated Regulation 2022/1288***, under a section titled ‘How environmentally sustainable is this product?’, the following information:
(i) the minimum proportion of the investment of the PRIIP that is associated with economic activities that qualify as environmentally sustainable in accordance with Articles 5 and 6 of Regulation (EU) 2020/852 of the European Parliament and of the Council****;
(ii) the expected greenhouse gas emissions intensity associated with the PRIIP pursuant to Delegated Regulation 2022/1288;’;
(e) Paragraph 4 is deleted.
(f) In paragraph 5, the third subparagraph is replaced by the following:
“The ESAs shall submit those draft regulatory technical standards to the Commission by … [PO please insert the date= one year after the date of entry into force of this amending Regulation].”
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** Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in the financial services sector (OJ L 317, 9.12.2019, p. 1).
*** Commission Delegated Regulation (EU) 2022/1288 of 6 April 2022 supplementing Regulation (EU) 2019/2088 of the European Parliament and of the Council with regard to regulatory technical standards specifying the details of the content and presentation of the information in relation to the principle of ‘do no significant harm’, specifying the content, methodologies and presentation of information in relation to sustainability indicators and adverse sustainability impacts, and the content and presentation of the information in relation to the promotion of environmental or social characteristics and sustainable investment objectives in pre-contractual documents, on websites and in periodic reports (OJ L 196, 25.7.2022, p. 1).
****Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (OJ L 198, 22.6.2020, p. 13).’;
(6) Article 10(2) is amended as follows:
(a) point (b) is replaced by the following :
‘(b) the conditions under which the key information document must be revised, distinguishing between PRIIPs that are still made available to retail investors and PRIIPs that are no longer made available;”
(b) the second and third subparagraphs are replaced by the following:
“The ESAs shall take into account situations where a PRIIP is no longer made available to retail investors. The ESAs shall submit those draft regulatory technical standards to the Commission by … [PO please insert the date = one year after date of entry into force of this amending Regulation].
Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010, of Regulation (EU) No 1094/2010 and of Regulation (EU) No 1095/2010.’;
(7) Article 14 is replaced by the following :
‘Article 14
(1) The person advising on, or selling, a PRIIP shall provide the key information document to retail investors free of charge. The information shall be provided in an electronic format, unless the retail investor has requested to receive the key information document on paper. The person advising on, or selling a PRIIP shall inform the retail investors about their right to receive the key information document on paper free of charge.
(2) The electronic format of the key information document may be provided by means of an interactive tool that enables the retail investor to generate personalised key information based on the information in the key information document or the information underlying it. That tool shall respect the following conditions:
(a) thee interactive tool, or its use, shall not alter the understanding of the key information document;
(b) all key information shall be presented;
(c) the key information document shall be easily accessible through a link next to the interactive tool, and the link shall be accompanied by the following message "It is recommended to download and store the key information document”;
(d) the interactive tool shall allow investors to simulate costs over the recommended holding period.
Where the key information document is provided in accordance with the first subparagraph, its format may be adapted compared to the presentation of the key information document referred to in Article 8.
(3) The ESAs shall develop draft regulatory technical standards specifying the modalities for personalising the information as referred to in paragraph 2, the first subparagraph, and the conditions for adapting the formatting of the information, as referred to in paragraph 2, the second subparagraph.
In addition to the modalities referred to in the first subparagraph, the regulatory technical standards shall include the conditions for personalising the key investor information in the following manners:
(a) the conditions for personalising the information to allow investors to simulate costs over a holding period that is different from the recommended holding period;
(b) the conditions for personalising the information to allow investors to compare different PRIIPs;
(c) the conditions for personalising the information to make it accessible to persons with disabilities.
(4) The key information document may be presented in a layered format. In that case, the dashboard referred to in Article 8(3), point (aa) shall appear in the first layer.
(5) The retail investor shall be notified electronically, or in written form, of the address of the website, and the place on the website where the key information document can be accessed.
(6) The key information document shall remain accessible on the website of the person advising or selling the PRIIPS, and shall remain capable of being downloaded and stored in a durable medium, for such period of time as the retail investor may need to consult it. Where the PRIIP manufacturer has revised the key information document as referred to in Article 10, the PRIIP manufacturer shall provide the retail investors with previous versions upon request.
Article 2
Entry into force and application
This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union. It shall apply from [PO please insert the date = 18 months after the date of entry into force of this amending Regulation].
This Regulation shall be binding in its entirety and directly applicable in all Member States.