The Association of British Insurers (ABI) has welcomed the one-year delay in the implementation of the new regulation on Packaged Retail and Insurance-based Investment Products (PRIIPs).
Hugh Savill, ABI director of regulation, said that postponing the application date of the PRIIPs regulation will give insurers much needed time to implement the complex requirements.
“The ABI has continuously engaged with the EU and UK policymakers on this and we welcome that they have recognised the need for a delay,” Savill said.
The PRIIPs regulation aims to improve the quality of information provided to consumers. It introduces a standardised factsheet, known as a Key Information Document (KID), which is designed to present the main features of an investment product in a simple and accessible manner.
The regulation forces banks and insurers to use KID, which will allow consumers to easily compare the potential risks and rewards of investment products, funds and investment-linked life insurance policies.
In September, the European Parliament rejected the regulation as lawmakers called it “flawed” and “misleading”.
According to Savill, insurers are now hoping that the right changes are made to the legislation.
“Otherwise, the KID will not be a useful and meaningful document for UK consumers,” he said.
Savill said the ABI will continue to work with the Financial Conduct Authority and European Insurance and Occupational Pensions Authority to ensure that the consumer-friendly objectives of the regulation can be met.
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