On the 28th of November 2016, the Economic and Monetary Affairs (ECON) Committee of the European Parliament approved an amending Regulation to delay PRIIPs for 12 months (therefore moving the set date to January 2018 rather than 2017). This leaves just one final legal step before the process to formally delay the PRIIPs regulation until 2018 can be completed.
The European Commission already proposed a 12 month delay to the PRIIPs Regulation on the 9th of November, citing a need for more legal certainty and more time for firms to prepare for the rules.
The financial industry welcomed the announcement. However, formalising the delay depends on the other EU institutions being able to complete the legal process within a very tight timeframe.
This vote cleared the way for a Parliament plenary vote to formally delay PRIIPs until 31 December 2017.
Today, the EU MEPs voted, by 561 votes to 9 with 75 abstentions, to delay the introduction of a key explanatory document supplied by investment providers to consumers, while the EU Commission comes up with better proposals.
The Commission now has another year to come up with alternative proposals on the standards for the KID, and if these are agreed by Parliament and the Council, the KID could be introduced from 1 January 2018.