Shearman & Sterling LLP | Financial Regulatory Developments Focus | UK Regulations on Packaged Retail and Insurance-based Investment Products Published
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  • UK Regulations on Packaged Retail and Insurance-based Investment Products Published
    12/05/2017
    The Packaged Retail and Insurance-based Investment Products Regulations 2017 have been published and will enter into force on January 1, 2018.

    The Regulations implement in part the EU Regulation on key information documents for packaged retail and insurance-based investment products (PRIIPs Regulation). From January 1, 2018, the PRIIPs Regulation will introduce requirements on manufacturers of PRIIPs to produce a standardized Key Information Document in an official language of all EU countries into which offerings are made. It also requires those advising on or selling PRIIPs to provide retail investors with KIDs in good time before the investor enters into the investment.

    This legislation has major implications for many parts of the financial sector, since PRIIPs as defined are likely to include most financial instruments (other than shares). For example, for bonds and exchange traded derivatives, new selling restrictions or disclosures are needed for many financial products.

    The Regulations designate the Financial Conduct Authority as the competent authority for the purposes of the PRIIPs Regulation and confer enforcement powers on the FCA. The FCA will be empowered to make orders prohibiting persons from marketing PRIIPs or requiring them to suspend marketing. The FCA will also have the power to issue statements on contraventions of the PRIIPs Regulation and/or to impose penalties.

    View the Regulations (S.I. 2017 No 1127).

    View Correction Slip published on December 11, 2017.

    View the Explanatory Memorandum.