The European Commission has now published its final proposal for a Regulation on mandatory pre-sale disclosures for Packaged Retail Investment Products (PRIPs). The Regulation aims to close gaps and inconsistencies in current rules across Europe by introducing uniform rules on product disclosures. The Commission last consulted on these reforms in January 2010, so the draft Regulation has been a long time coming.
Our briefing summarises the new PRIPs Regulation and considers the interplay with disclosures required by the RDR and revised MiFID. This Regulation is likely to considerably increase the costs and resource already being expended in implementing related rules under the FSA's RDR and the Commission's review of MiFID (MiFID II). Estimated industry compliance costs are €171 million initially and €14 million per year thereafter.
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