Summary title: Petition No 0394/2021 by Lee Nicholas (American) on exemption of US nationals from PRIIPS regulations due to FATCA
Petition number: 0394/2021
Topics: Constitutional Affairs, Consumer Rights, Economic and Monetary Affairs, Taxation
Country: United States, European Union
Name: Nicholas Lee
The petitioner denounces that due to the applicability of the extraterritorial "Foreign Account Tax Compliance Act" (FATCA) it is difficult for "US Persons", resident in European Union Member States to obtain access to numerous financial services or products. He points out that this situation is specially problematic in the context of MIFID II (Market in Financial Instruments Directive II) and PRIIPs (Packaged Retail and Insurance-based Investment Products) regulations that require all investment products sold to EU residents to contain a "Key Information Document", which, as he explains, to date no US domiciled funds have provided. Due to the lack of funds compliant with EU regulations, most US brokers refuse to sell responsible and safe investment products to a known EU resident.The petitioner calls on the European Parliament to permit US-based brokers to sell publicly traded and SEC-regulated investment products to EU residents, provided that they meet the definition of a "US person" under FATCA, as an exception to MIFID II / PRIIPs rules.