Brussels, 9 March 2016 | Given the latest draft of the Regulatory Technical Standards (RTS) on the layout of the Key Information Documents (KIDs) introduced by the Regulation on Packaged Retail and Insurance-Based Investment Products (PRIIPs Regulation), it seems that the scope may have been unintentionally changed and is now affecting also energy markets. With this position paper, Europex would like to express its concerns regarding this new development. While we support the Commission’s objective of improving the ability of retail investors to compare products and understand their features, we would like to highlight that the laid out requirements are incompatible with wholesale energy products. As they are highly inadequate for energy market participants, we believe they risk hampering energy retail markets and the European energy market as a whole.
In this paper, we will explain why the final RTS should clarify that not all derivatives, and in particular not exchange traded commodity derivatives (ETCDs), qualify as “packaged retail investment products” (PRIPs). We think such a clarification is necessary because the draft RTS may be misconstrued, as if it brought into the scope of the PRIIPs Regulation all derivatives, not only those that fit the definition of a PRIP, as outlined in article 4 (1) of the PRIIPs Regulation.
Please find the position paper attached.