Parliament to vote on whether to return investor protection proposals to Commission
EU Commission proposals to protect consumers buying packaged financial products - a market worth up to €10 trillion - have been judged insufficient by the Economic Affairs Committee and could be sent back to the Commission if the Committee’s view is confirmed by Parliament as a whole in a vote on Wednesday.
The Economic and Monetary Affairs Committee described the measures, covering “packaged retail and insurance-based investment products” (PRIIPs), as “misleading” and flawed. It unanimously recommended that Parliament should return the proposals for revision.
A key criticism is that the proposed formulas for predicting investment performance, which are meant to help investors choose between different products, could produce overly rosy predictions which could in turn mislead consumers and result in their losing money.
If Parliament as a whole backs the draft resolution, the Commission will have to come up with new proposals. The PRIIP legislation is due to come into force on 31 December.
Note for editors
A plenary vote in favor of the draft resolution in accordance with Rule 105(3) of the Rules of Procedure would oblige the Commission to submit a new delegated act taking into account Parliament’s recommendations.
The delegated act concerns the draft regulatory technical standard which supplements Regulation (EC) no 1286/2014 on key information documents for packaged retail and insurance-based investment products (PRIIPs).
Procedure: Legislative resolution (Scrutiny of delegated acts)
Vote: Wednesday, 14 September