Banks and fund managers are still grappling with various new investor protection regimes due for implementation in January 2018.
The revised Markets in Financial Instruments Directive (Mifid II) shifts the burden of product governance requirements to issuers and manufacturers of various products. The Packaged Retail and Insurance-based Investment Products (Priips) regime, which is designed to complement Mifid II, centres on producing a generic pre-sale document known as a key information document (KID).
Priips was initially intended to become effective from January this year, but lawmakers chose to delay it – meaning firms are now working to implement both regimes simultaneously.
While they’re dragging the market in the same direction and there are overlaps between their respective requirements, they impact different parts of the business – where communication can be lacking.
“When I talk to colleagues in the mainstream bond space they say they...