Information documents

Under the European PRIIPs Regulation, manufacturers of packaged retail and insurance-based investment products (PRIIPs) have to publish key information documents (KIDs; see info box). Anyone who sells, or gives advice on, such products will have to provide retail investors with these information documents (PRIIPs KIDs) before committing themselves to a binding contract or offer. The Regulation specifies the form and content of the key information documents.

Regulatory standards on PRIIPs KIDs

At the beginning of April 2016, the Joint Committee of the three European Supervisory Authorities (ESAs), presented draft regulatory technical standards on the key information document for PRIIPs to the European Commission for approval. The European Commission initially approved the draft. However, since the European Parliament (EP) rejected the proposal, the Commission withdrew its approval and submitted to the ESAs proposed amendments on the basis of the criticisms raised by the EP. The ESAs were given six weeks to comment. The amended regulatory standards are now expected to be approved and enter into force in mid-2017. The original target date had been 31 December 2016. The application of the PRIIPs Regulation, which entered into force in December 2014, has been postponed to 1 January 2018 in an accelerated legislative process. In 2017, the ESAs are additionally planning to issue interpretive guidance for the above-mentioned regulatory standards. BaFin was actively involved in all the ESAs' legislative acts referred to here.

Other information documents at European level

In addition to the PRIIPs key information document, other information documents are being developed at the European level.

The Payment Accounts Directive (PAD)¹ requires the EBA to develop regulatory technical standards in order to define consistent terminology for the Union on the most representative national payment services as well as to develop implementing technical standards on the "fee information" and "statement of fees" documents.

The format and contents of these information documents will be governed by implementing technical standards, which provide specific instructions on how to prepare information documents and contain sample information documents.

The fee information document provides ex ante information on fees that will be charged for services in connection with the payment account. By contrast, the statement of fees lists all fees actually incurred individually for services in connection with the payment account in the specified period.

The deadline set in the Payment Accounts Directive for the preparation of the regulatory and implementing standards by 18 September 2016 was not met by the EBA. The consultation process for the EBA's proposed technical standards continued for several months at the end of 2016. Final versions of the technical standards are therefore expected in the first quarter of 2017 at the earliest.

In addition, Article 20 of the Insurance Distribution Directive (IDD)² specifies a standardised European product information document for property/casualty and private health insurance (insurance product information document – IPID). The European Insurance and Occupational Pensions Authority (EIOPA) approved an implementing technical standard (ITS) on the IPID and submitted it to the European Commission on 7 February 2017. It sets out rules on the layout, headings, sequence and graphics of the IPID. The requirements for the content of the product information document are specified in the IDD. They largely correspond to the existing German provisions of the Regulation on Information Obligations for Insurance Contracts (Verordnung über Informationspflichten bei Versicherungsverträgen).³

FinCoNet

In February 2016, BaFin joined the Financial Consumer Protection Network (FinCoNet). Established in 2013, FinCoNet is a registered association under French law. Its purpose is to promote the exchange of information on consumer protection issues in the financial sector at an international level among supervisory authorities and other government institutions. Within FinCoNet, members have the opportunity to help develop and enhance consumer protection standards and practices across the world.

Since November 2016, BaFin has also been represented on FinCoNet's Governing Council, where it can exert critical influence on how FinCoNet is managed and what it deals with. At present, FinCoNet is addressing, among other issues, online lending platforms for short-term, high-interest loans as well as supervisory practices and tools to be used to reduce risks for consumers in the digital age.

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