The chairman of the European Fund and Asset Management Association (Efama) said changes to the packaged retail and insurance-based investment products regulation, known as Priips, are needed and its implementation should be delayed.
Alexander Schindler cited the possibility of problems for consumers caused by factors such as the exclusion of past performance figures of a Priips product despite the fact that future scenarios are based on them.
He also said that retail investors will be provided with too much prescriptive narrative under Priips that would inhibit detailed explanation of the actual product. In essence, Schlinder is saying that more time is needed to get the rules right and implement them properly.
Speaking with Funds Europe, Schindler said that with 56,000 investment funds in Europe, it was essential that regulators got things right.
But he also said regulators were now more conducive to working with industry groups. For example, the European Securities and Markets Authority is consulting bodies such as Efama when designing regulations.
However, the issue of “gold-plating” directives to suit national supervisors persists, Schlinder said. “Why have different risk parameters in Germany and Italy for CRD IV [Capital Requirements Directive]?”
He added that the real loser when countries gold-plate directives is the end consumer, as they bear the extra costs involved in complying with changes a national supervisor makes.
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