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Topic: Retail

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Joint consultation paper concerning amendments to the PRIIPs KID

On 8 November 2018, the Joint Committee of the European Supervisory Authorities published a consultation paper setting out proposed amendments to the PRIIPs Delegated Regulation (Commission Delegated Regulation (EU) 2017/653 of 8 March 2017). The amendments relate to the empowerment in Article 8(5) of the PRIIPs Regulation concerning the presentation and content of the key … Continue Reading

ESA letter to Commission on PRIIPS KID requirements

On 1 October 2018, the European Supervisory Authorities (ESAs) co-published a response to the European Commission’s request to develop guidance on facilitating the production and distribution of information on investment funds as of 1 January 2020. The ESAs state that they are still of the view that an approach whereby retail investors will receive both … Continue Reading

ESMA extends prohibition on binary options

The European Securities and Markets Authority (ESMA) has announced that it is renewing the prohibition on the marketing, distributing or sale of binary options to retail clients. The prohibition has been in effect since 2 July 2018, and will extend for a further 3-month period from 2 October 2018. However, ESMA has agreed to two … Continue Reading

ESAs publish further guidance on the KID for PRIIPs

On 20 July 2018, the European Supervisory Authorities published further guidance on the Key Information Document (KID) requirements for Packaged Retail and Insurance-based Investment Products (PRIIPs). The guidance consists of: additional Questions and Answers; and updates to the Flow diagrams for the risk and rewards calculations (New calculation example for Category 3 PRIIPs stress performance … Continue Reading

Commission issues an evaluation roadmap on the Consumer Credit Directive

The European Commission has published an evaluation roadmap of the Consumer Credit Directive (CCD).  The evaluation of the CCD is expected to conclude in 2019. The evaluation will gather evidence regarding the functioning of the CCD in its totality and in particular, regarding the following aspects: design and distribution phases of credit products; cross-selling of … Continue Reading

Study on the distribution systems of retail investment products

On 24 April 2018, the European Commission published a study that has been produced for it which provides facts and figures on the current features and functioning of European markets for retail investment products. The study identifies obstacles that consumers face in the EU when buying investment funds, investor-driven life insurance or private pension. By … Continue Reading

Commission proposes a new deal for consumers

On 11 April 2018, the European Commission issued legislative proposals for a new deal for consumers to ensure that EU consumers fully benefit from their rights under EU law. In summary the new deal seeks to strengthen consumer rights online and give consumers the tools to enforce their rights and get compensation. In terms of … Continue Reading

CPMI cross-border retail payments

The Committee on Payments and Market Infrastructures (CPMI) has published a report on cross-border retail payments. The report aims to present a holistic view of cross-border retail payments, covering the various cross-border retail payment types and the processes behind clearing and settlement of cross-border retail payments. For the purposes of the report, cross-border retail payments … Continue Reading

ESMA statement of preparatory work relating to CFDs and binary options offered to retail clients

The European Securities and Markets (ESMA) has issued a statement to provide an update on its work in relation to the provision of contracts for differences (CFDs), including rolling spot forex and binary options to retail clients. ESMA has been concerned about the provision of speculative products such as CFDs, including rolling spot forex and … Continue Reading

Commission adopts Delegated Regulation on RTS on strong customer authentication and common and secure communication under PSD2

Article 98(4) of the revised Payment Services Directive (PSD2) empowers the European Commission (Commission) to adopt, following submission of draft standards to the European Banking Authority (EBA), and in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010, delegated acts specifying the requirements of strong customer authentication, the exemptions from its application and … Continue Reading

Joint Committee of ESAs updates Q&A on PRIIPs KID

The Joint Committee of the European Supervisory Authorities has published updated Q&As on the key information document (KID) requirements for packaged retail and insurance-based investment products as laid down in Commission Delegated Regulation (EU) 2017/653. The updated document includes new Q&As on the following: market risk assessment; performance scenarios; derivatives; multi-option products. The section on … Continue Reading

BaFin publishes draft circular on product oversight and governance arrangements for retail banking products

The German Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) has published a new draft circular on product oversight and governance arrangements for retail banking products with the objective of strengthening consumer protection in relation to financial products offered in the market. The draft circular shall govern how financial institutions are expected to control and manage the … Continue Reading

Joint Committee of ESAs technical advice on PRIIPs with environmental or social objectives

Packaged retail and insurance-based investment products (PRIIPs) are increasingly being offered that target specific social or environmental objectives, and not only purely financial objectives. In light of this, article 8(3)(c) of the PRIIPs Regulation requires a section of the key information document (KID) entitled “What is this product?” to outline the nature and main features … Continue Reading

European Commission adopts Delegated Regulation on RTS on co-operation and exchange of information for passporting under PSD2

Article 28(5) of the revised Payment Services Directive (PSD2) empowers the European Commission (Commission) to adopt, following the submission of draft standards by the European Banking Authority (EBA), and in accordance with Articles 10 to 14 of Regulation No (EU) 1093/2010, delegated acts specifying the framework for cooperation and exchange of information between competent authorities … Continue Reading

EBA final guidelines on authorisation and registration under PSD2

The European Banking Authority (EBA) has published a final report on the EBA guidelines on the information to be provided by applicants intending to obtain authorisation as a payment institution (PI) or e-money institution (EMI), or to register as an account information service provider under the revised Payment Services Directive (PSD2). The guidelines have been … Continue Reading

European banking associations outline concerns about third party interactions under PSD2

The European Association of Co-operative Banks, European Banking Federation and the European Savings Bank Group have co-published a joint request to the European Parliament to reject certain aspects of the European Commission’s proposed amendments to the European Banking Authority’s draft regulatory technical standards on strong customer authentication and common and secure open standards of communication … Continue Reading

Final EBA guidelines on professional indemnity insurance under PSD2

The European Banking Authority (EBA) has published final guidelines under the revised Payment Services Directive (PSD2) on the criteria on how to stipulate the minimum monetary amount of the professional indemnity insurance (PII) or other comparable guarantee for payment initiation services (PIS) and account information services (AIS). The EBA also sets out the responses to … Continue Reading

ESAs publish Q&A on the PRIIPs KID

The European Supervisory Authorities (ESAs) have co-published their first set of questions and answers related to the key information document (KID) requirements for Packaged Retail and Insurance-based Investment Products (PRIIPs) laid down in European Commission Delegated Regulation (EU) 2017/653. The Q&A covers the following topics: market risk assessment; methodology for assessing credit risk; summary risk … Continue Reading

Guidelines on the application of the PRIIPs Regulation

The European Commission has adopted guidelines on the application of the Regulation on key information documents for packaged retail and insurance-based investment products (PRIIPs Regulation). The PRIIPs Regulation applies from 1 January 2018. The guidelines do not contain or create new legal rules. Rather it seeks to further facilitate the implementation of, and the coverage … Continue Reading

ESMA statement on preparatory work in relation to CFDs, binary options and other speculative products

The European Securities and Markets Authority (ESMA) has issued a statement updating on its work in relation to the sale of contracts for differences (CFDs), binary options and other speculative products to retail investors.… Continue Reading

EBA opinion on Commission’s intention to amend draft RTS on strong customer authentication and common and secure communication

The European Banking Authority (EBA) has published an opinion responding to the European Commission’s intention to amend the EBA’s draft regulatory technical standards (RTS) on strong customer authentication and common and secure communication under the revised Payment Services Directive (PSD2). The EBA disagrees with three of the four concrete amendments the Commission proposes on the … Continue Reading

EBA consults on central contact points under the PSD2

The European Banking Authority (EBA) has issued a consultation paper on draft regulatory technical standards on the criteria for determining the circumstances in which the appointment of a central contact point pursuant to Article 29(4) of the revised Payment Services Directive (PSD2) is appropriate and the functions of those central contact points.… Continue Reading

European Commission launches pan-EU private pensions product

The European Commission has published long-awaited legislative proposals on creating a pan-European Personal Pension’s Product (PEPP). The PEPP regime will provide the building blocks for the creation of a voluntary single personal pension product that can be marketed by providers on a pan-European scale. The new regime is intended to sit alongside existing national products … Continue Reading

ECON draft report on retail financial services action plan

The European Parliament’s Committee on Economic and Monetary Affairs (ECON) has published a draft report on the European Commission’s action plan on retail financial services. The draft report contains a motion for a European Parliament resolution on the action plan and an explanatory statement by the rapporteur, Olle Ludvigsson. In the explanatory statement the rapporteur … Continue Reading
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