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Mifid Prips regime should also apply to non-Prips

Wednesday 13 October 2010 - by Nicola York

Any changes to the conduct of business regime for Mifid financial instruments which are packaged retail investment products should also be introduced for non-Prip Mifid financial instruments too, according to the European level 3 committees.

In the task force’s report on Prips released today, CEBS, CEIOPS and CESR say they believe this is in the interests of harmonisation and to avoid the potential for regulatory arbitrage.

The report says: “It is recognised that the Prips regime would be easier to enforce if regulator competences and powers were harmonised across the European Union, so that all products are subject to equivalent regimes as regards their structure and their marketing.”

The committee concluded that pensions and annuities should be left out of the scope of Prips for the moment because other work is being undertaken by CEIOPS and the Commission at present.

Prips are grouped into four product families; investment or mutual funds, investments packaged as life insurance policies, retail structured securities and structured term deposits.


The task force stressed that insurance directives, the prospectus directive, the UCITS directive and Mifid should be taken into account in developing any common regime for Prips.


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