The European Fund and Asset Management Association (EFAMA) has welcomed the decision by the European Parliament’s Economic and Monetary Affairs Committee to amend its proposal on the cross-border distribution of funds.
The committee’s vote confirmed important amendments to the commission’s original proposal, notably, the extension of the “premarketing” definition to established EU alternative investment funds and removing the numerical thresholds conditioning the de-notification of funds from host jurisdictions.
The European Commission is also set to delay extension to the Packaged Retail and Insurance-based Investment Products (PRIIPs) key investor document (KID) requirement to UCITS funds by two years.
It constitutes an acknowledgement that PRIIPs KID currently presents flaws that need to be corrected in an appropriate manner.
Consumers will continue to benefit from the well-functioning UCITS KID until the PRIIPs KID rules are appropriately designed to give accurate and clear information and allow investors to make informed investment decisions.
In a statement, EFAMA said: “Ahead of the trialogue discussions, EFAMA trusts that the council and the commission will agree this is the best outcome for the protection of the investors.”
It added: “EFAMA joins the European Parliament’s call on the European Commission to review the PRIIPs regulation as soon as possible and solve all outstanding problems, including the methodology for calculating transaction costs. EFAMA stands ready to provide further assistance in that respect.”
