On July 21, the European Supervisory Authorities (ESAs) (consisting of the European Securities and Markets Authority (ESMA), the European Insurance and Occupational Pensions Authority (EIOPA) and the European Banking Authority (EBA)) informed the European Commission in a letter of the outcome of the review conducted by the ESAs of the key information document (KID) for packaged retail and insurance-based investment products (PRIIPs).

This follows the ESAs’ consultation paper published on October 16, 2019 on draft regulatory technical standards (RTS) to amend the technical rules on the presentation, content, review and revision of KIDs (Delegated Regulation (EU) 2017/653 (PRIIPs Delegated Regulation)).

The ESAs’ review of the PRIIPs Delegated Regulation aimed to address the main regulatory issues that had been identified since the implementation of the KID, in particular regarding the information on performance and costs, and to allow the appropriate application of the KID by undertakings for collective investment in transferable securities.

Having reviewed a draft final report following the public consultation in June 2020, the three Boards of Supervisors of the ESAs determined that the report contained balanced and proportionate final proposals, which would allow the ESAs to meet their main policy objectives while remaining in line with the PRIIPs level 1 framework. The EBA and ESMA Boards adopted the draft RTS, but at the EIOPA Board it did not receive the support of a qualified majority, although a large number of members agreed with the draft.

As the draft RTS was not adopted by all three ESA Boards, the ESAs have confirmed that they are not in a position to formally submit an RTS to the European Commission. However, for transparency purposes, their draft final report is attached as an annex to the joint letter.

The letter is available here.