ECON (European Parliament Economic and Monetary Affairs Committee) has voted 55 / 0 against the PRIIPS RTS (level 2) adopted and published on July 1st 2016.
The vote has been motivated by the use of future performances rather than past ones, the treatment of Multi-Options Products and legal uncertainty.
PRIIPS level 1 still valid.
Indeed, PRIIPS performances scenarios in the current RTS could lead to positive performances even in the unfavorable scenarios. The opposite can happen in the favorable scenario. These situations reflect the observed average returns from the time series used for the computations.
Multi-Options Products could lead to the production of high volume of KIDS and push the investors to confusion.
Finally, computed indicators across different manufacturers of the same product could introduce legal uncertainty.
TALEO Reporting, key provider believes that there still is a real possibility for PRIIPS to go live on January 1st, 2017. However, a 6 months minimum delay is expected for the authorities concerned to redraft and agree on new RTS.