FINANCIAL PRODUCTS : NEGOTIATIONS SET TO CONTINUE.

• Position: Brief article

Negotiations on regulating financial products will continue in the European Parliament and the Council on the three pieces of draft legislation put forward by the European Commission on 3 July 2012 and which mainly aim to increase consumer protection.

The first revises Directive 2009/65/EC on undertakings for collective investment in transferable securities (UCITS), investment funds widely used by retail investors. The text aims to strengthen the obligations and responsibility of depositaries, who are in charge of monitoring and supervising the legality of the UCITS' decisions. The second (regulation) concerns packaged retail investment products (PRIPs) and establishes the requirement of a key information document' (KID) for retail investors. The third revises the Insurance Mediation Directive (2002/92/EC), or IMD, which regulates access to, and exercise of, insurance and reinsurance mediation activities.

Finally, the European Parliament and Council will attempt to...