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Media Briefing Note: PRIPs Hearing a Step Forward, Says Hogan Lovells

21 November 2013

LONDON and ROME, 21 November 2013 - The European Parliament this week held a plenary session, from 18 to 21 November, at which it considered the European Commission's proposal for a regulation on "key investor information documents" (KIIDs) for packaged retail investment products (PRIPs).

Commenting on the week's proceedings, Hogan Lovells' Financial Institutions partner, Jeffrey Greenbaum, said:

"The PRIPS hearings have been a step forward in creating a more level playing field among investment products.  The compromise text is a recognition that one size does not fit all for disclosure purposes. 

"In any case, the impact of PRIPS may vary from Member State to Member State.  PRIPS is likely to have the greatest effect in jurisdictions where investors are more active in the buying of investment product. 

"Additional, clearer disclosure helps the consumers where clients rely more on the documents, rather than the advice provided to them by salespeople.    In countries like Italy, where the process is more sales driven, MIFID 2 and IMD 2 are likely to have a far greater influence for investors".  


On 3 June 2013, the Presidency of the Council of the European Union published a draft compromise proposal, dated 28 May 2013, on the European Commission's proposal for a regulation on key information documents (KID) for investment products for packaged retail investment products (PRIPs). This applies to:

  • investment (or mutual) funds (whether closed-ended - such as investment trusts, or open-ended, including UCITS);
  • all structured products, whatever their form (e.g. packaged as insurance policies, funds, securities or banking products)
  • investments packaged as life insurance policies;
  • retail structured securities;
  • structured term deposits.

The PRIPs consultation is focused on "product transparency" which is to be achieved through the delivery of a "key investor information document" (KIID) to retail investors prior to a purchase commitment being made by such investors in relation to a PRIP.

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