European regulators are being asked to revise a proposed new point-of-sale disclosure regime for packaged retail securities, and insurance-based investment products, to ensure better investor protection.
In a letter published Thursday, the European Commission has asked European Supervisory Authorities (ESAs) to consider changes to the proposed new regime, which was supposed to take effect in January 2017, but has now been delayed until 2018.
The EU letter to the ESAs, which encompasses the European Banking Authority (EBA), European Securities and Markets Authority (ESMA) and European Insurance and Occupational Pensions Authority (EIOPA), comes after the European Parliament requested changes.
Among other things, policymakers are calling for changes to the disclosure that would alert investors to the fact that they could lose money on their investment by disclosing a future performance scenario under stressed market conditions, and for simpler cost disclosure.