Con­su­mer infor­ma­tion

PRIIPs review: A com­pre­hen­sive review of con­su­mer infor­ma­tion is necessary

EIOPA has rejected a draft with targeted technical amendments to the PRIIPs key information document (PRIIPs KID). GDV welcomes this decision. The German insurers had pointed out early that piecemeal changes would not be sufficient.

The Board of Supervisors of the EIOPA has rejected a draft with targeted technical amendments to the PRIIPs key information document (PRIIPs KID). EIOPA justified its decision by stating that a partial revision of the technical provisions is not appropriate at this stage, prior to a planned comprehensive review of the PRIIPs Regulation. The GDV welcomes this decision. The German insurers had pointed out early that piecemeal changes would not be sufficient. Now the time should be used to develop solutions that will effectively improve consumer understanding in a carefully planned comprehensive review of the PRIIPs Regulation.

The rejected amendments would have significantly increased the complexity of the PRIIPs KID and could even have led to misleading information. This would have counteracted the objective of creating comparability between different investment products.

In future proposals, it must be ensured that the information really does help consumers in their decision-making and supports product selection in line with their demands and needs. However, the information on past performance should not be included in the PRIIPs KID, since it is misleading for consumers. For this reason, the legislator has also explicitly decided not to include past performance in favour of future performance scenarios when introducing the PRIIPs KID. The regulator should refer to well-functioning concepts for future-performance scenarios instead.

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