European Commission Adopts Retail Investment Strategy Package With the Aim to Enhance Investor Protection – K&L Gates

No Comments

Premium Domain Names for Sale at CrocoDom.com
On 24 May 2023, the European Commission (Commission) adopted the Retail Investment Strategy as part of its 2020 capital markets union action plan. The primary objective is to reinforce investor protection within the European Union (EU), foster trust in the financial sector and promote participation in capital markets.
Investor protection rules are currently established across various pieces of EU legislation. Accordingly, the Commission has put forth an Omnibus Directive, proposing amendments to the provisions of the following sectors: 
The package also encompasses a proposal to amend the Packaged Retail and Insurance-based Investment Products Regulation (PRIIPs) (Regulation (EU) No 1286/2014).
The Omnibus amending directive (Amending Directive) is organised into five main sections, each corresponding to one of the amended directives. The amending regulation for PRIIPs (Amending Regulation) focuses on revisions to the general product disclosure rules. 
The Amending Directive aims to:
The Amending Directive introduces a standardised format for advising investors, particularly under MiFID II and IDD. In order to enhance the transparency of financial instruments, the Commission mandates national competent authorities (NCAs) to enforce the utilisation of ‘risk warnings’ for high-risk products. The European Securities and Markets Authority (ESMA) and the European Insurance and Occupational Pensions Authority (EIOPA), the two relevant competent agencies within the EU, will further define the concept of ‘particularly risky products’ in forthcoming guidelines. 
The proposal also includes amendments to investment firms’ regulatory disclosure on costs, charges and associated payments. Undertakings will be required to provide this information in an electronic format using a standardised structure. Additionally, investment firms will have to set out annual statements with information on costs and charges, as well as products’ performance. 
The Commission also emphasises the need for clear communications employed by financial and insurance undertakings to promote their products. Investment firms will need to adopt sound and effective internal policies on marketing communications and practices, which are defined, approved and supervised by their management bodies. Insurance intermediaries are not subject to the same level of organisational requirements, as the IDD does not provide for them.
Marketing communications from both investment firms and insurance intermediaries will need to provide essential product characteristics in a clear, fair and straightforward manner. The Commission will adopt a delegated act to specify the definition and design of an essential product characteristic. 
According to the Commission’s proposal, investment firms, insurance undertakings, alternative investment funds and UCITS management companies will need to establish an integrated pricing process disclosing costs and charges to investors. These requirements apply to both the manufacturer and the distributor levels. 
Businesses and NCAs will have to report to ESMA and EIOPA the data on costs, charges and performance of PRIIPs. Building on this reporting obligation, the Commission mandates the two authorities to develop benchmarks for cost and performance. The overall aim of these amendments is to clarify the costs borne by investors and ensure the acquisition of value-for-money investments.
The current rules addressing conflicts of interests differ under MiFID II and IDD. The Commission introduces new provisions under both frameworks, in particular regarding the payment of commissions (Inducements). The proposal will extend the existing ban on Inducements under MiFID II to insurance-based products in IDD, and will continue to prohibit Inducements for non-advised sales. 
Nevertheless, where investment firms or insurance undertakings provide advice to clients, the Commission proposes to apply a new test that replaces the ‘quality enhancement’ test under MiFID II and the ‘no detriment’ test under IDD. Advisors will need to (i) recommend an appropriate range of financial products; (ii) recommend the most cost-efficient investment; and (iii) offer at least one alternative financial product not necessary to the achievement of the client’s investment objectives, allowing the comparison with other potential options. 
The Commission’s proposal also amends MiFID II and IDD to reinforce supervision and enforcement in financial markets. Considering the significant expansion of digital channels and the cross-border provision of services, the Commission aims to ensure that NCAs can cooperate and coordinate their enforcement actions effectively. 
The objective is to enhance supervisory efficiency between IDD and MiFID II, while fostering the protection of consumers and retail investors across the EU digital capital market. The Commission aims to expedite cooperation among competent authorities, facilitating communication during supervision and easing the conditions under which they can take action (e.g. restricting access to websites that pose a threat to investor protection). 
The Amending Regulation proposes changes to the PRIIPs regulation. It introduces several amendments to the requirements of the key information document (KID), an information file that provides investors with a concise overview of crucial elements of each investment product (e.g. costs, risks, potential returns). 
It also establishes a summary dashboard (‘product at a glance’), providing more visibility to key elements on costs and risks of investment products. The presentation of multi-option products is also adapted to include key information, facilitating the research and comparison among the different investment options. 
The Amending Regulation aims to modernise the provisions in relation to the KIDs’ design, specifying the conditions for the use of layering (i.e. expanding the text of the investment sections of interest) under an electronic format. More substantially, KIDs will include an assessment of the sustainability level of the investment; this section will be structured on the basis of existing sustainability disclosures. 
The Commission invited stakeholders and interested parties to submit their feedback on the proposals until 31 July 2023. 
The Commission’s proposals will now need to go through the European Parliament and the Council of the European Union (the Co-Legislators) for approval. The imminent European Parliament elections in June 2024 may incentivise EU Co-Legislators to rapidly engage on the files or, on the contrary, significantly delay the finalisation and the implementation of the strategy. 
The Economic and Financial Affairs Council will discuss the strategy at the next Council of the EU meeting on 16 June 2023. Economic and financial ministers will have the opportunity to express their views and provide their initial reaction to the package.
This publication/newsletter is for informational purposes and does not contain or convey legal advice. The information herein should not be used or relied upon in regard to any particular facts or circumstances without first consulting a lawyer. Any views expressed herein are those of the author(s) and not necessarily those of the law firm’s clients.
Global Counsel Across Five Continents.  Our office locations can be viewed here.
We welcome your email, but please understand that if you are not already a client of K&L Gates LLP, we cannot represent you until we confirm that doing so would not create a conflict of interest and is otherwise consistent with the policies of our firm. Accordingly, please do not include any confidential information until we verify that the firm is in a position to represent you and our engagement is confirmed in a letter. Prior to that time, there is no assurance that information you send us will be maintained as confidential. Thank you for your consideration.

source
Premium Domain Names:

A premium domain name is a highly sought-after domain that is typically short, memorable, and contains popular keywords or phrases. These domain names are considered valuable due to their potential to attract more organic traffic and enhance branding efforts. Premium domain names are concise and usually consist of one to two words or two to four individual characters.

Top-Level Domain Names for Sale on Crocodom.com:

If you are looking for top-level domain names for sale, you can visit Crocodom.com. Crocodom.com is a platform that offers a selection of domain names at various price ranges. It is important to note that the availability of specific domain names may vary, and it’s recommended to check the website for the most up-to-date information.

Contact at crocodomcom@gmail.com:

If you have any inquiries or need assistance regarding the domain names available on Crocodom.com, you can reach out to them via email at crocodomcom@gmail.com. Feel free to contact them for any questions related to the domain names or the purchasing process.

Availability on Sedo.com, Dan.com, and Afternic.com:

Apart from Crocodom.com, you can also explore other platforms like Sedo.com, Dan.com, and Afternic.com for available domain names. These platforms are popular marketplaces for buying and selling domain names. Each platform may have its own inventory of domain names, so it’s worth checking multiple sources to find the perfect domain name for your needs.

#PremiumDomains #DomainInvesting #DigitalAssets #DomainMarketplace #DomainFlipping #BrandableDomains #DomainBrokers #DomainAcquisition #DomainPortfolio #DomainIndustry #DomainAuctions #DomainInvestors #DomainSales #DomainExperts #DomainValue #DomainBuyers #DomainNamesForSale #DomainBrand #DomainInvestment #DomainTrading

About us and this blog

We are a digital marketing company with a focus on helping our customers achieve great results across several key areas.

Request a free quote

We offer professional SEO services that help websites increase their organic search score drastically in order to compete for the highest rankings even when it comes to highly competitive keywords.

Subscribe to our newsletter!

There is no form with title: "SEOWP: MailChimp Subscribe Form – Vertical". Select a new form title if you rename it.

More from our blog

See all posts

Leave a Comment