Changes from report parliamentary committee draft to plenary report

Added(fa) in paragraph 5, the following subparagraph is added:

Added“Five years after the date of application of Regulation (EU) .../... [OP Please introduce the number of this amending Regulation] and after having consulted ESMA and EIOPA, the Commission shall assess the degree of alignment between the pre-contractual disclosure of information referred to in paragraph 3, point (ca), of this Regulation and the pre-contractual disclosure framework contained in Articles 8 and 9 of Regulation (EU) 2019/2088. The Commission shall present a report on its main findings to the European Parliament, the Council and the European Economic and Social Committee. Where appropriate, the report shall be accompanied by a legislative proposal ensuring such alignment to the extent that it is compatible with the KIDs’ objectives."

Added(5a) Article 10(1) is amended as follows:

Added“1. 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.

AddedBy derogation from the first subparagraph, the requirement to review and revise the key information document shall cease to apply where the PRIIP is no longer open to new subscriptions and cannot be purchased on a secondary market.”;

Added(6) in Article 10(2), ▌point (b) is replaced by the following:

Added‘(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 open to new subscriptions and cannot be purchased on a secondary market;”

Added▌

Added(6a) Article 13 is amended as follows:

Added(a) paragraph 1 is replaced by the following:

Added“1. A PRIIP distributor 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. In any case where marketing communication about the PRIIP is provided by the financial adviser to the retail investor on paper or in a digital format, the key information document shall be provided to the retail investor at the latest at the same time, together with an explanation of the regulatory nature of such document.”;

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

Added“4. Where successive transactions regarding the same PRIIP are carried out on behalf of a retail investor in accordance with instructions given by that retail investor to the person selling the PRIIP prior to the first transaction, the obligation to provide a key information document under paragraph 1 shall apply only to the first transaction, and a detailed description shall be provided where the key information document has been revised in accordance with Article 10.

AddedAdditionally, prior to an additional subscription, the latest revised version of the key information document shall be provided to the retail investor upon request.”;

Added(7) Article 14 is replaced by the following :

Added‘Article 14

Added(1) The person advising on, or selling, a PRIIP shall provide the key information document to retail investors free of charge. The information shall be provided in an electronic format, unless the retail investor has requested to receive the key information document on paper. The person advising on, or selling a PRIIP shall inform the retail investors about their right to receive the key information document on paper free of charge. The content of the key information document in an electronic format and on paper must be the same, with adequate adaptations to guarantee access to all relevant information referred to therein.

Added(2) The electronic format of the key information document may be provided by means of an interactive tool to make the key information document more comprehensible and easier to read. The tool shall base the information on the key information document or the information underlying it and may allow information to be displayed based on personal preferences in an interactive way.

AddedThat tool shall respect the following conditions:

Added(a) thee interactive tool, or its use, shall not alter the understanding of the key information document;

Added(b) all key information shall be presented;

Added(c) the key information document shall be easily accessible through a link next to the interactive tool, and the link shall be accompanied by the following message "It is recommended to download and store the key information document”;

Added(d) the interactive tool shall allow investors to simulate costs over the recommended holding period.

Added(da) where the PRIIP manufacturer offers the retail investor a range of options for investments:

Added(i) the information provided shall reflect the combination of investment options that the retail investor is considering;

Added(ii) the pre-contractual information documentation relating to the underlying investment assets backing the investment options shall be easily accessible through a link next to the interactive tool.

AddedWhere the key information document is provided in accordance with the first subparagraph, its format may be adapted compared to the presentation of the key information document referred to in Article 8.

Added(3) After conducting consumer testing, the ESAs shall develop draft regulatory technical standards specifying the modalities for personalising the information as referred to in paragraph 2, the first subparagraph, and the conditions for adapting the formatting of the information, as referred to in paragraph 2, the second subparagraph.

AddedIn addition to the modalities referred to in the first subparagraph, the regulatory technical standards shall include the conditions for personalising the key investor information in the following manners:

Added(a) the conditions for personalising the information to allow investors to simulate costs over a holding period that is different from the recommended holding period;

Added(b) the conditions for personalising the information to allow investors to compare different PRIIPs;

Added(c) the conditions for personalising the information to make it accessible to persons with disabilities.

Added(4) The key information document may be presented in a layered format. In that case, the dashboard referred to in Article 8(3), point (aa) shall appear in the first layer.

Added(5) The retail investor shall be notified electronically, or in written form, of the address of the website, and the place on the website where the key information document can be accessed.

Added(6) The latest version of the key information document shall remain easily and publicly accessible to all retail investors on the website of the PRIIPs manufacturer and, with regard to the relevant PRIIPs that are sold or subject to investment advice, on the website of the PRIIPs distributor.

AddedThe key information document shall remain capable of being downloaded and stored in a durable medium, for such period of time as the retail investor may need to consult it.

AddedIf the key information document is not available on the website of the distributor, the distributor shall provide it to the retail investor upon request within 2 working days.

AddedWhere the PRIIP manufacturer has revised the key information document as referred to in Article 10, the PRIIP manufacturer shall provide the retail investors with previous versions of the document upon request.

Added(8) Article 16(2), point (c) is replaced by the following:

Added"(c) competent authorities have not taken action to address the threat, the actions that have been taken do not adequately address the threat, or the product concerned is marketed in multiple Member States making it difficult for the distribution authority of the home Member State to oversee product distribution issues and for competent authorities of the host Member State to oversee the manufacturing process.".

AddedEntry into force and application

AddedThis Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union. It shall apply from ... [PO please insert the date = 18 months after the publication in the Official Journal of the European Union of the delegated acts referred to in Article 10(2) of Regulation (EU) No 1286/2014 or the adoption by the Commission of the regulatory technical standards referred to in Article 8(5) of Regulation (EU) No 1286/2014, whichever happens last].

AddedThis Regulation shall be binding in its entirety and directly applicable in all Member States.

AddedDone at Brussels,

AddedFor the European Parliament For the Council

AddedThe President The President