The European Commission announced on November 9th that it will take the necessary legal steps to postpone the PRIIPs Regulation for 12 months. The announcement aligns the dates of application of PRIIPs with MiFID II.
The European Fund and Asset Management Association (EFAMA) stated in a press release that they very much welcome the proposal by the Commission to delay the application date of the PRIIPs Regulation by 12 months.
In order to do so, the European Commission will publish its proposals in an amending draft Regulation, which must be quickly passed by Parliament and Council if the existing 31 December 2016 application date is to be successfully pushed back by one year.
"There is only one reason why we considered a delay absolutely essential, and this is because it is materially impossible and simply unrealistic for product manufacturers and distributors to meet the original 31 December 2016 deadline."
A postponement therefore proved necessary and will now materialise in a more realistic timetable to comply with the Regulation.
They believe that this delay will allow companies to appropriately implement the new rules.
"Equally important is the fact that this postponement will also ensure more time is available for solutions to be found on the revised RTSs. Allowing past performance, and fixing the misleading methodology of transaction costs must absolutely be addressed. This remains a crucial part of ensuring the KIDs’ success." EFAMA concluded.