The European Parliament's Committee on Economic and Monetary Affairs (ECON) published a draft report (dated 20 December 2012) on the proposal for a regulation on key information documents (KIDs) for packaged retail investment products (PRIPs). The report contains a draft European Parliament legislative resolution on the proposed Regulation, suggesting amendments to the proposals. It contains an explanatory statement which includes that:
- The proposed Regulation should not be restricted to packaged investments or investments with a (partly) unknown return, but should cover all savings and investment products, including shares and interest rate-based savings products, including sovereign debt bonds, bank term accounts and life insurance.
- KIDs should contain supplementary information (which should be added by the product distributor) on applicable tax regime, costs and remuneration.
- The KID should be aligned with the UCITS KIID and the exemption for KIIDs should be reduced from five to three years.
- The powers of the European Supervisory Authorities (ESAs) should be strengthened. The European Parliament will consider the proposal at its plenary session 1 to 4 July 2013.