Published: 28th February 2017

Of Relevance to:
Most firms providing investments or investment services to retail investors, including AIFMs, UCITS Management Companies and Authorised Fund Managers of NURS


A joint EBA/EIOPA/ESMA consultation paper (JC 2017 05) has been published concerning Packaged Retail and Insurance-based Investment Products (“PRIIPs”) with environmental or social objectives.

The PRIIPs – Joint Consultation paper arises from Article 8(4) of the PRIIPs Regulations which empowers the Commission to adopt acts which specify details of the procedures used to establish whether a PRIIP targets specific environmental or social objectives (“EOS PRIIPs”). The PRIIPs – Joint Consultation paper explains that where a Key Information Document states that a PRIIP targets such objectives, “the manufacturer must be able to demonstrate to stakeholders, and in particular to the potential retail investor, in supporting documentation to the KID, the relevance of these objectives for the whole value chain of the investment process”.

Chapter 4 provides draft ‘Technical Advice’ (page 20) the introduction to which, subject to consultation feedback, advises that the current product oversight and governance provisions for PRIIPs are sufficient for EOS PRIIPs but there would be benefit in another delegated act by the Commission to assist EOS PRIIPs manufacturers to understand what is expected.

It is noted from section 2.3 of JC 2017 05 that we are advised “As of the 1st January 2018 …. PRIIPs manufacturers will have to indicate whether or not a PRIIP targets EOS objectives”.

The consultation period ends 23 March 2017.