The Joint Committee of the ESAs has held its first Consumer Protection Day. It included a panel discussion on the proposal for a Regulation on the Key Information Document (KID) for packaged retail investment products (PRIPs) (KID Regulation) and sessions on consumer trends, sales incentives and product intervention. In his opening speech, Gabriel Bernardino, chairman of EIOPA, announced the creation of a Joint Sub-Committee on Consumer Protection and Financial Innovation comprising three sub-groups:
- PRIPs. This sub-group is already working on the level 2 measures foreseen in the KID Regulation proposal, such as on tailoring the KID to different products while retaining as much standardisation as possible for risks, costs and performance indicators.
- Product oversight and governance. This sub-group aims at producing best practice on financial institutions' product approval process.
- General consumer protection. This sub-group will extend EIOPA's guidelines on complaints-handling to the banking and securities sectors, and will carry out work on cross-selling.
Gabriel Bernardino also referred to regulatory, supervisory and enforcement consistency, and to the need to bring about a new paradigm on transparency and fairness towards consumers. (Source: Joint Committee of the ESAs Holds its First Consumer Protection Day and ESAs: Our Joint Effort in Enhancing Consumer Protection in Europe)