This paper responds to the Commission’s PRIPS initiative, concluding that the initiative has the potential to substantially improve the experience of consumers when buying retail financial products.
Across the EU, citizens need to save more, especially for retirement income. The evidence is that many consumers are not comfortable making investment decisions. They must be helped. The Commission’s PRIPS initiative is an important measure which has the potential to give consumers much better outcomes. To succeed, the initiative must cover all substitutable products, regardless of legal form. Rules on disclosure and on the nature and cost of advice and distribution must produce identical outcomes for the consumer. In addition, nothing should be done to damage the welcome diversity of product and distribution methods available to consumers.
The PRIPs initiative should be judged against four criteria:
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