PRIIPs – Commission formally proposes delay to RTS to 1 January 2023

It has been an open secret for some time that the application date of the amendments to the current PRIIPs Level 2 RTS on the form and content of the PRIIPs KID was going to be put back.

Even so, it is good finally to see something in black and white.

What’s new?

The European Commission has now put forward a formal ‘quick fix’ proposal to delay amendments to the PRIIPs Level 2 RTS so these will now apply from 1 January 2023 rather than 1 July 2022 as originally envisaged.
As a reminder, the amendments to the PRIIPs Level 2 RTS are set out in the Delegated Regulation of December 2021, and this ‘quick fix’ would:

• bring the start date of the amended RTS in line with that of both
  • the end of the UCITS exemption and
  • the rule whereby Member States must allow provision of a PRIIPs KID to comply with the requirement to provide a UCITS KIID; and
• end the current transitional provision allowing provision of a UCITS KIID (laid down in Article 14(2) of the PRIIPs Level 2 RTS) on 31 December 2022.

Next steps?

Formally, the European Parliament and Council of the EU will need to endorse the Commission’s proposal but neither body is expected to have any issues in doing so.