Priips needs structured product tailoring

Author: Lizzie Meager | Published: 22 Sep 2016

Proposed new rules for packaged retail and insurance-based investment products directive (Priips) have created a rift in Brussels and beyond, with the structured product industry claiming it’s just not a case of one-size-fits-all.

It’s the first time the European Parliament has ever voted to reject draft legislation. MEPs described it as 'so flawed and misleading’ that it could actually lose them money.

The Parliament’s Economic and Monetary Committee also earlier rejected the proposals by 55 votes to 0. The new rules were originally due to be effective from December 31 this year.

Zak de Mariveles, chairman of the UK Structured Products Association and a managing director at Société Générale said the rejection of the regulatory technical standards (RTS), and rumours of no quick fix, have created an additional layer of uncertainty and confusion.

"Although it somewhat reassuringly supports what the structured product industry has been saying for...