Consumer Protection in Financial Services - Towards Greater Transparency with a Key Information Document for Packaged Retail Investment Products
As the European Commission emphasizes, important problems have been identified in the EU retail investment market. Product information about investments is often considered as weak and difficult to use, conflicts of interest bedevil the distribution of products, and the regulation of the market is fragmentary and inconsistent. Therefore, retail confidence in the credibility of financial services has collapsed following the financial crisis. The three legislative proposals published on 3 July 2012 are designed to enhance consumer protection in financial services. The first of the proposals (UCITS V) is a draft Directive which amends the UCITS IV Directive currently in force, and focuses on strengthening the obligations and responsibilities of depositaries. The second legislative proposal seeks to recast the Insurance Mediation Directive that regulates access to and the exercise of insurance and reinsurance mediation activities. The third proposal is a draft Regulation on a New Key Information Document for Investment Products; it concerns packaged retail investment products (PRIPs) and establishes the requirement of the aforementioned key information document (KID). (fragment of text)
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