Restricted access to US ETFs for ordinary EU retail investors
Question for written answer E-004745/2021
to the Commission
Eugen Jurzyca (ECR)
Since 2018, ordinary investors in the European Union cannot invest in US exchange-traded funds (US ETFs). This is because rules came into force in 2018 requiring providers of investment products to supply retail investors with a ‘key information document’ (KID) to help them better understand the product they are buying. US ETFs do not provide such a document.
According to certain views, US issuers cannot develop KIDs for their US ETFs. One reason for this is the fact that PRIIPs require disclosure of likely future performance under four different scenarios, and US issuers cannot make such forecasts under US legislation.
An unintended consequence of PRIIPs for ordinary retail investors may therefore be that their ability to invest in US ETFs, which have significantly lower fees than European UCITS funds, may become restricted.
- 1.Does the Commission have information on the annual volume of US ETFs purchased by ordinary European retail investors between 2015 and 2020?
- 2.Will the assessment of the potential regulatory conflict between the EU and the US be included in the review and report which are to be presented by the Commission to Parliament in accordance with the PRIIPs Regulation?