The Commission published a proposal for a Regulation on key information documents for packaged retail investment products (PRIPs) in July 2012. PRIPs include different types of investment products which are marketed to retail investors, including insurance based products and structured term deposits. There is currently no consistent regulation for pre-contractual product disclosures for these products.

The Commission has proposed a new disclosure instrument to regulate pre-contractual disclosures of PRIPs. This new disclosure instrument requires pre-contractual disclosure for all PRIPs sold in the retail market, applying the same principles in the UCITS Directive’s KIID. The Commission is also proposing rules on sales practices by extending the application of the MiFID sales rules to PRIPs which are not currently covered.

Timing: The proposal will be considered by the European Parliament and the Council of the EU in 2013. The Regulation is not likely to apply before mid 2015