What changed between the draft committee report and the plenary report

Removed:We suggest that the tool also contains information relating to performances, in order for investors to be able to compare value for money of the different investment options; and the costs of the PRIIP (those relating to the wrapper) that do not relate to its investment options, in order to have a comprehensive view of the total costs. Additionally, information about investment cost is also a key aspect of the investment decision and it should be provided by default rather than on an optional basis.

Added:(7) To ensure that retail investors make an informed investment decision at all times, the key information document should be kept up to date. Draft regulatory technical standards should specify the conditions under which the key information document should be revised, distinguishing between PRIIPs that are still made available to retail investors and PRIIPs that are no longer made available. Keeping the key information document updated should be without prejudice to the fact that manufacturers should comply with the pre-contractual information contained in the key information document provided to retail investors before their investment.

Change 2

Changed:(8) Regulation (EU) No 1286/2014 should therefore be amended accordingly.

Change 3

Removed:Article 1 – paragraph 1 – point 4, Article 6 – paragraph 3 – point b: (b) Retail investors have easy access to the pre-contractual information documentation relating to the underlying investment assets backing the investment options;

Added:(9) Sufficient time needs to be provided to European Supervisory Authorities to draft specifications for key elements of the amended rules and for the PRIIPs manufacturers to familiarise themselves with these specifications. Therefore, the date application of this Regulation should be deferred,

Removed:For PRIIPS that offer a range of options for investment, it is necessary to distinguish between the wrapper of the product, the investment options and the underlying asset backing these options.

Added:HAVE ADOPTED THIS REGULATION:

Change 4

Changed:Amendments to Regulation (EU) No 1286/2014

Change 5

Removed:Article 1 – paragraph 1 – point 4, Article 6 – paragraph 3 – point c: (c) PRIIPs manufacturers provide investors in good time before retail investors are bound by any contract or offer to invest in a given investment option, the complete costs of the PRIIP including that investment option.

Added:Regulation (EU) 1286/2014 is amended as follows:

Removed:Regulation (EU) No 1286/2014

Added:(1) Article 2(2) is amended as follows:

Removed:Article 1 – paragraph 1 – point 5 – point a, Article 8 – paragraph 3 – point aa: deleted / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted)

Added:(a) point (d) is replaced by the following:

Removed:The ‘Product at a glance’ section aims at summarizing a document that wraps up essential information about a product in a 3-page format. The content is redundant with those of the PRIIPS KID and will use space in a document that is already very dense. This addition does not concur to the much-needed simplification of PRIIPs.

Added:‘(d) securities as referred to in Article 1(2), points (b) to (e), and point (g) of Regulation (EU) 2017/1129 of the European Parliament and the Council*;’;

Removed:Regulation (EU) No 1286/2014

Added:(b) the following point (h) is added:

Removed:Article 1 – paragraph 1 – point 5 – point c, Article 8 – paragraph 3 – point c – point (ii) – point 1: (1) a description of the underlying investment assets or reference values;

Added:‘(h) pension products that are annuities and do not have an accumulation phase (immediate annuities)’;

Removed:Regulation (EU) No 1286/2014

Added:* Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market, and repealing Directive 2003/71/EC (OJ L 168, 30.6.2017, p. 12).;

Change 6

Changed:Article 1 – paragraph 1 – point 5 – point c a (new), Article 8 – paragraph 3 – point c – point iii: (ca)(2) in paragraphArticle 3, point (c), pointparagraph (iii)1 is replaced by the following: / “(iii) appropriate information onfollowing performance;”;:

Change 7

Removed:(32014R1286)

Added:‘1. Where PRIIPs manufacturers subject to this Regulation are also subject to Regulation (EU) 2017/1129, this Regulation and Regulation (EU) 2017/1129 shall both apply.’;

Removed:The current functioning of performance scenarios is detrimental to retail investors: they provide misleading information to investors as they overstate recent market moves for certain products and they contradict information on past performance provided in other documents. ESAs and the Commission had to take several corrective measures, signaling that the current framework needed to be adapted. This amendment will allow manufacturers to provide information on performance that is best suited to the type of product concerned and to the interest of retail investors.

Added:(3) Article 4 is amended as follows:

Removed:Regulation (EU) No 1286/2014

Added:(a) in point (1), the following text is added after the last sentence:

Removed:Article 1 – paragraph 1 – point 5 – point e a (new), Article 8 – paragraph 5 – subparagraph 2: (ea) in paragraph 5, the second subparagraph is replaced by the following: / “When developing the draft regulatory technical standards, the ESAs shall take into account the various types of PRIIPs, the differences between them and the capabilities of retail investors as well as the features of the PRIIPs so as to allow the retail investor to select between different underlying investments or other options provided for by the product, including where this selection can be undertaken at different points in time, or changed in the future. Where appropriate, in order to provide information which is fair, clear and not misleading to retail investors, different approaches may be taken between different types of products.”;

Added:“, except if those fluctuations are only attributed to the inclusion of a make whole clause as defined in Article 4(1)(44a) of Directive 2014/65/EU.”

Removed:(32014R1286)

Added:(aa) point (5) is replaced by the following:

Removed:Without giving up on to the overarching aim of comparability between substitutable products, it should be possible to allow additional differentiation in how the rules apply to different types of products. It is necessary to slightly adapt the ESA’s Level II mandate to signal that the aim of comprehensibility should prevail over that of comparability. This would remove the rigidities of current rules which often prevent ESAs to adopt, in Level II, methodologies for certain families of products that would have been beneficial to retail investors' understanding and decision-making.

Added:‘(5) ‘PRIIP distributor’ means a person advising on, offering, selling or concluding a PRIIP contract with a retail investor;’;

Removed:Regulation (EU) No 1286/2014

Added:(b) The following point (7a) is inserted:

Removed:Article 1 – paragraph 1 – point 5 a (new), Article 10 – paragraph 1: (5a) in Article 10, paragraph 1 is replaced by the following: / “1. For as long as the PRIIP is open to new subscriptions, the PRIIP manufacturer shall review the information contained in the key information document regularly and shall revise the document where the review indicates that changes need to be made. The revised version shall be made available promptly.”

Added:‘(7a) ‘electronic format’ means electronic format as defined in Article 4, point (62a), of Directive 2014/65/EU;’;

Removed:(32014R1286)

Added:(4) ▌Article 6 is amended as follows:

Removed:The obligation to update the PRIIPS KID even after a product is closed to subscription is burdensome for manufacturers and does not fulfil its original purpose, which is to inform new investors about the main characteristics of the product. Instead of level II measures proposed by the Commission under article 10(2)(b), a level I provision which exempts products that are "closed to new investments" represents a more straightforward solution to clarify the issue.

Added:(a) paragraph 2 is replaced by the following:

Removed:Regulation (EU) No 1286/2014

Added:“2. The key information document shall be a stand-alone document, clearly separate from marketing materials. It shall not contain cross-references to marketing material or any investment recommendations. It may contain cross-references to other documents including a prospectus where applicable, but only where the cross-reference is related to the information required to be included in the key information document by this Regulation.”;

Removed:Article 1 – paragraph 1 – point 6 – point a, Article 10 – paragraph 2 – point b: (b) the conditions under which the key information document must be revised, distinguishing between PRIIPs that are still made available to retail investors and PRIIPs that are no longer made available and in relation to which payments or transfers are no longer possible;

Added:(b) paragraph 3 is replaced by the following:

Removed:This amendment aims at taking into account PRIIPs that are no longer made available but in relation to which payments, transfers or arbitrages may still be carried out. In such case, key information document should be revised and kept up-to-date.

Added:“3. By way of derogation from paragraphs 2 and 4, where a PRIIP manufacturer offers the retail investor a range of options for investment, the PRIIP manufacturer shall provide a generic description of the investment options and may provide the information required by Article 8(3) with regard to the different investment options in separate documents. The information provided relating to each underlying investment option:

Removed:Regulation (EU) No 1286/2014

Added:(a) may include only the costs for the underlying investment option, provided that the overall costs of the PRIIP relating to that investment option are separately included in the key information document to the retail investor;

Removed:Article 1 – paragraph 1 – point 6 – point b, Article 10 – paragraph 2 – subparagraphs 2 and 3: deleted / (deleted) / (deleted)

Added:(b) shall consist of no more than four sides of A4-sized paper when printed.

Removed:This issue can be dealt with directly in the Level I, without the need for a specific Level II empowerment – see previous amendments.

Added:In addition, PRIIP manufacturers shall facilitate comparison between different underlying investment options through the use of a summary table or other comparison tools, such as a filtering mechanism.”;

Removed:Regulation (EU) No 1286/2014

Added:(c) paragraph 4 is replaced by the following:

Removed:Article 1 – paragraph 1 – point 6 a (new), Article 13 – paragraph 1: (6a) in Article 13, paragraph 1 is replaced by the following: / “1. A person advising on, or selling, a PRIIP shall provide retail investors with the key information document in good time before those retail investors are bound by any contract or offer relating to that PRIIP. Where marketing communication about the PRIIP is provided to retail investors in paper or digital format, the key information document shall be provided at the same time, as well as an explanation on the regulatory nature of that document.”;

Added:“4. The key information document shall be a short document written in a concise manner and shall consist of no more than four sides of A4-sized paper when printed, which promotes comparability. It shall:

Removed:(32014R1286)