Hogan Lovells has commented on the European parliament’s recent plenary session that considered the European Commission’s proposal for a regulation on ‘key investor information documents’ (KIIDs) for packaged retail investment products (PRIPs).
The law firm’s financial institutions partner, Jeffrey Greenbaum, said: ‘The PRIPs hearings have been a step forward in creating a more level playing field among investment products. The compromise text is a recognition that one size does not fit all for disclosure purposes.
‘In any case, the impact of PRIPs may vary from member state to member state. PRIPs is likely to have the greatest effect in jurisdictions where investors are more active in the buying of investment product.’
Greenbaum added that additional, clearer disclosure helps the consumers where clients rely more on the documents, rather than the advice provided to them by salespeople. ‘In countries such as Italy, where the process is more sales driven, MIFID 2 and IMD 2 are likely to have a far greater influence for investors,’ he said.