The European Commission (EC) will wait until 22 November to discuss whether to delay the introduction of controversial PRIIPs regulation, just over a month ahead of its official implementation date.
The move, announced in the Commission's latest agenda, has been widely anticipated by the industry since the European parliament rejected the regulatory technical standards (RTS) for PRIIPs Key Information Documents (KIDs) at the end of August.
But with PRIIPs legislation due to be implemented on 31 December 2016, just over a month after the meeting, product providers could be left to prepare for the directive with no official guidelines for their compliance if a delay is not announced.
A one-year delay to the directive has already been backed by more than 20 member countries of the European Union, including the United Kingdom, France, Germany, and Ireland.
The European Parliament overwhelmingly voted to reject the PRIIPs KID RTS following a last minute challenge to the rules by its Committee on Economic and Monetary Affairs (ECON).
ECON argued the KIDs could "mislead" retail investors, and claimed the methodology for the calculation of future performance scenarios under PRIIPs does not fulfill the requirement under Regulation (EU NO 1286/2014) to provide information which is "accurate, fair, clear and not misleading".
MEPs have warned the methodology does not in some cases inform investors they could lose money, even for products which have regularly led to losses over the recommended minimum holding period.
Despite the rejection being passed, several industry figures have argued the motion should be extended to address issues with the calculation of costs and charges under PRIIPs.
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