Financial services

Packaged Retail Investment Products (PRIPs)

The European Commission proposes to address the regulatory playing-field between various types of investment products, referred to as Packaged Retail Investment Products (PRIPs).

The intention of PRIPs is to achieve consistent and effective standards for investor protection across a wide range of investments, and ensure there is a level-playing field for distributors and providers of investment products.

While there is a considerable body of European legislation in place to protect investors, the Commission recognises that rules can differ dependent on the type of product and its distribution. Only a few Member States, including the UK, have in effect established a level-playing field already through their national implementation of major pieces of market reform such as the Markets in Financial Instruments Directive (MiFID). In the UK, MiFID rules were applied across the universe of core investment business, investment-backed life insurance and structured deposits.

To increase consistency across Member States, the Commission will rectify the current patchwork of regulation by taking a ‘horizontal’ approach to the treatment of PRIPs. This will involve defining rules relating to pre-contractual disclosure and selling practices to support investor understanding and protection.

In November 2010, the European Commission published a consultation on PRIPs. For more information, please see:

Packaged Retail Investment Products (PRIPs): Commission consultation (PDF) (opens in new browser window)

Packaged Retail Investment Products (PRIPs)

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