Investment Products for Retail Investors (PRIPS) (Regulation)
The Commission wishes to introduce uniform key information documents on investment products (PRIPS) in order to strengthen investor protection and to create a level playing field for investment product manufacturers. The key information documents must be provided to retail investors before the acquisition of an investment product (e.g. an investment fund) and must have a standardised structure.
Uniform key information documents can strengthen investor protection and help prevent distortion of competition. However, they should be prescribed for non-packaged investment products as well. The validity of the summary indicators in the key information documents on the risk profile and the costs of investment products is limited. Legal uncertainty is created because the PRIPS Regulation and the proposed Directives on alternative dispute resolution differ and because the compensation rules are very vague.