The EU might be gearing up to change some of the rules regulating retail and insurance-based investment products (PRIIP), but MirrorWeb warns that financial firms should worry more about the rules already in place.
“In this post-crisis era where regulators are more likely to introduce new legislation than leave matters in the hands of the regulated firms, we could well be set for further changes to KIDs under the PRIIP regulations,” the RegTech firm wrote in a new blog. “As ever, it’s impossible to try and comply with regulations before it’s exactly known what they will ask. In the meantime, before more information is made available, firms need to ensure they are complying with existing regulations as best they can and therefore – when PRIIPs are involved – including a KID on their website that is readily accessible.”
And as MirrorWeb explained in the blog, there are plenty of things to already get right. For instance, understanding what constitute PRIIPs – mutual funds, insurance-based investment products, structured products and deposits, convertible bonds, derivatives and products issued by SPV – can be tricky enough.
MirrorWeb also stated that the EU issued a consultation into changes of the regulations. The consultation closed in January 2020. The new changes are set to introduced as early as 2022, according to MirrorWeb.
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