CESR, CEBS and CEIOPS have published a joint report on packaged retail investment products ("PRIPs"). PRIPs are comparable to complex financial products. Examples of PRIPs are: investment funds, unit-linked investment insurance, structured securities and structured deposits. PRIPs differ according to tax treatment and form in which they are offered, but they also have some characteristics in common. They represent investments in various underlying financial assets, they are used for accumulating capital (although some provide capital protection), they intend to yield medium- or long-term income, and they are marketed directly to retail investors in particular. The European Commission wants to create uniform rules for provision of information about and the sale of PRIPs. These rules will have to be in line with existing European law, including the Prospectus Directive, the MiFID and the UCITS Directive. The joint report contains advice to the European Commission and addresses the following subjects:

  • the scope of the PRIP rules
  • the form and content of the information to be provided to investors before they invest in a PRIP
  • the rules to be followed when selling PRIPs