Regulation (EU) No 1286/2014 of the European Parliament and of the CouncilShow full title

CHAPTER I U.K. SUBJECT MATTER, SCOPE AND DEFINITIONS

Article 1 U.K.

This Regulation lays down F1 ... rules on the format and content of the key information document to be drawn up by PRIIP manufacturers [F2 before PRIIPs are made available to retail investors in the United Kingdom] and on the provision of the key information document to retail investors [F3 in the United Kingdom] in order to [F4 enable them] to understand and compare the key features and risks of the PRIIP.

Textual Amendments

F1 Word in Art. 1 omitted (31.12.2020) by virtue of The Packaged Retail and Insurance-based Investment Products (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/403), regs. 1(2), 4(1)(a) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F2 Words in Art. 1 inserted (31.12.2020) by The Packaged Retail and Insurance-based Investment Products (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/403), regs. 1(2), 4(1)(b) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F3 Words in Art. 1 inserted (31.12.2020) by The Packaged Retail and Insurance-based Investment Products (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/403), regs. 1(2), 4(1)(c) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F4 Words in Art. 1 substituted (31.12.2020) by The Packaged Retail and Insurance-based Investment Products (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/403), regs. 1(2), 4(1)(d) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

Article 2 U.K.

[F5 1. This Regulation applies to—

(a) PRIIP manufacturers in relation to PRIIPs which are, or are to be, made available to retail investors in the United Kingdom; and

(b) persons advising on, or selling, PRIIPs.]

2. This Regulation shall not apply to the following products:

(a) non-life insurance products as listed in Annex I to Directive 2009/138/EC;

(b) life insurance contracts where the benefits under the contract are payable only on death or in respect of incapacity due to injury, sickness or infirmity;

(c) deposits other than structured deposits as defined in [F6 point (23) of Article 2(1) of the markets in financial instruments regulation];

[F7 (d) non-equity securities (as defined in point (c) of Article 2(1) of Directive 2003/71/EC) issued by—

(i) the United Kingdom, any part of the United Kingdom, or a third country;

(ii) a local authority in the United Kingdom or one of the regional or local authorities of a third country;

(iii) a public international body of which the United Kingdom or a third country is a member; or

(iv) the Bank of England, the European Central Bank or the central bank of a third country;

(da) shares in the capital of the Bank of England or of a central bank of a third country;

(db) securities (as defined in point (a) of Article 2(1) of Directive 2003/71/EC) unconditionally and irrevocably guaranteed by—

(i) the United Kingdom, any part of the United Kingdom, or a third country; or

(ii) a local authority in the United Kingdom or one of the regional or local authorities of a third country;

(dc) securities (as defined in point (a) of Article 2(1) of Directive 2003/71/EC) issued by associations with legal status or non-profit-making bodies recognised by the United Kingdom, any part of the United Kingdom, or a third country with a view to their obtaining the means necessary to achieve their non-profit-making objectives;

(dd) non-equity securities (as defined in point (c) of Article 2(1) of Directive 2003/71/EC) issued in a continuous or repeated manner (as defined in point (l) of Article 2(1) of that Directive) by credit institutions (as defined in point (g) of Article 2(1) of that Directive) provided that these securities—

(i are not subordinated, convertible or exchangeable;

(ii do not give a right to subscribe to or acquire other types of securities and are not linked to a derivative instrument;

(iii materialise reception of repayable deposits;

(iv are covered by the compensation scheme within the meaning of section 213(2) of FSMA or by a similar scheme in a third country;

(de) securities as referred to in points (g), (i) and (j) of Article 1(2) of Directive 2003/71/EC;]

(e) pension products which, under [F8 the law of the United Kingdom, any part of the United Kingdom, or a third country], are recognised as having the primary purpose of providing the investor with an income in retirement and which entitle the investor to certain benefits;

(f) officially recognised occupational pension schemes within the scope of Directive 2003/41/EC of the European Parliament and of the Council(1) or Directive 2009/138/EC [F9 or as defined in section 1(1) of the Pension Schemes Act 1993];

(g) individual pension products for which a financial contribution from the employer is required by [F10 the law of the United Kingdom, any part of the United Kingdom, or a third country] and where the employer or the employee has no choice as to the pension product or provider.

Textual Amendments

F5 Art. 2(1) substituted (31.12.2020) by The Packaged Retail and Insurance-based Investment Products (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/403), regs. 1(2), 4(2)(a) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F6 Words in Art. 2(2)(c) substituted (31.12.2020) by The Packaged Retail and Insurance-based Investment Products (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/403), regs. 1(2), 4(2)(b)(i) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F7 Art. 2(2)(d)-(de) substituted for Art. 2(2)(d) (31.12.2020) by The Packaged Retail and Insurance-based Investment Products (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/403), regs. 1(2), 4(2)(b)(ii) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F8 Words in Art. 2(2)(e) substituted (31.12.2020) by The Packaged Retail and Insurance-based Investment Products (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/403), regs. 1(2), 4(2)(b)(iii) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F9 Words in Art. 2(2)(f) inserted (31.12.2020) by The Packaged Retail and Insurance-based Investment Products (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/403), regs. 1(2), 4(2)(b)(iv) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F10 Words in Art. 2(2)(g) substituted (31.12.2020) by The Packaged Retail and Insurance-based Investment Products (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/403), regs. 1(2), 4(2)(b)(v) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

[F11 Article 3 U.K.

1. Where PRIIP manufacturers subject to this Regulation are also subject to the provisions of FSMA and any rules or regulations made under FSMA which were relied on immediately before IP completion day to implement Directive 2003/71/EC, both this Regulation and those provisions apply.

2. Where PRIIP manufacturers subject to this Regulation are also subject to the provisions of FSMA and any rules or regulations made under FSMA which were relied on immediately before IP completion day to implement Directive 2009/138/EC, both this Regulation and those provisions apply.]

Textual Amendments

F11 Art. 3 substituted (31.12.2020) by The Packaged Retail and Insurance-based Investment Products (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/403), regs. 1(2), 4(3) (as amended by S.I. 2020/1301, regs. 1, 3, Sch. para. 26(b)) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

Article 4 U.K.

For the purposes of this Regulation, the following definitions apply:

(1)

‘packaged retail investment product’ or ‘PRIP’ means an investment, including instruments issued by special purpose vehicles as defined in point (26) of Article 13 of Directive 2009/138/EC or securitisation special purpose entities as defined in point (an) of Article 4(1) of the Directive 2011/61/EU of the European Parliament and of the Council(2), where, regardless of the legal form of the investment, the amount repayable to the retail investor is subject to fluctuations because of exposure to reference values or to the performance of one or more assets which are not directly purchased by the retail investor;

(2)

‘insurance-based investment product’ means an insurance product which offers a maturity or surrender value and where that maturity or surrender value is wholly or partially exposed, directly or indirectly, to market fluctuations;

(3)

‘packaged retail and insurance-based investment product’ or ‘PRIIP’ means a product that is one or both of the following:

(a)

a PRIP;

(b)

an insurance-based investment product;

(4)

‘packaged retail and insurance-based investment product manufacturer’ or ‘PRIIP manufacturer’ means:

(a)

any entity that manufactures PRIIPs;

(b)

any entity that makes changes to an existing PRIIP including, but not limited to, altering its risk and reward profile or the costs associated with an investment in a PRIIP;

(5)

[F12 ‘selling a PRIIP’ means—

(a)

offering a PRIIP contract to a retail investor in the United Kingdom; or

(b)

concluding a PRIIP contract with a retail investor in the United Kingdom;

(5A)

‘advising on a PRIIP’ means advising a retail investor in the United Kingdom on a PRIIP;]

(6)

‘retail investor’ means:

(a)

[F13 a client (as defined in point (7) of Article 2(1) of the markets in financial instruments regulation) who is not a professional client;

(b)

a customer, where that customer would not qualify as a professional client;]

(6A)

[F14 ‘customer’ means a customer within the meaning of the provisions of FSMA and any rules or regulations made under FSMA which were relied on immediately before IP completion day to implement Directive (EU) 2016/97 of the European Parliament and of the Council of 20 January 2016 on insurance distribution ;

(6B)

‘professional client’ means a professional client as defined in point (8) of Article 2(1) of the markets in financial instruments regulation;]

(7)

‘durable medium’ means a durable medium as defined in point (m) of Article 2(1) of Directive 2009/65/EC;

(8)

[F15 ‘FCA’ means the Financial Conduct Authority;

(9)

‘third country’ means a country or territory outside the United Kingdom;

(10)

‘FSMA’ means the Financial Services and Markets Act 2000;

(11)

‘the markets in financial instruments regulation’ means Regulation (EU) No. 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012;

(12)

In this Regulation, a reference to a provision of rules made under FSMA is a reference to that provision as it has effect on IP completion day.]

Textual Amendments

F12 Art. 4(5) substituted (31.12.2020) by The Packaged Retail and Insurance-based Investment Products (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/403), regs. 1(2), 5(2) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F13 Words in Art. 4(6) substituted (31.12.2020) by The Packaged Retail and Insurance-based Investment Products (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/403), regs. 1(2), 5(3) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F14 Art. 4(6A)(6B) inserted (31.12.2020) by The Packaged Retail and Insurance-based Investment Products (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/403), regs. 1(2), 5(4) (as amended by S.I. 2020/1301, regs. 1, 3, Sch. para. 26(c)(i)) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F15 Art. 4(8)-(12) substituted for Art. 4(8) (31.12.2020) by The Packaged Retail and Insurance-based Investment Products (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/403), regs. 1(2), 5(5) (as amended by S.I. 2020/1301, regs. 1, 3, Sch. para. 26(c)(ii)) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

[F16 Article 4A U.K.

1. The FCA may make rules specifying whether or not a product, or category of product, falls within the definition of a PRIIP for the purposes of this Regulation.

2. The provisions of Part 9A of FSMA listed in paragraph 3 apply to rules made under this Article as they apply to rules made by the FCA under that Act, subject to the modifications in that paragraph (if any).

3. The provisions are—

(a) section 137T (general supplementary powers), as if—

(i) the reference in paragraph (a) to authorised persons were a reference to persons, and

(ii) paragraph (b) were omitted;

(b) section 138F (notification of rules), as if subsection (2) were omitted;

(c) section 138G (rule-making instruments);

(d) section 138I (consultation by the FCA), as if—

(i) subsection (1)(a) (and the “and” after it) were omitted,

(ii) in subsection (1)(b), “after doing so,” were omitted,

(iii) in subsection (2), paragraphs (c) and (d) were omitted, and

(iv) subsections (5)(b) and (10) were omitted;

(e) section 138L (consultation: general exemptions), as if—

(i) in subsection (1), for “Sections 138I(1)(b) and (2) to (5) and 138K do” there were substituted “ Section 138I(1)(b) and (2) to (5) does ”,

(ii) subsections (2) and (4)(b) were omitted,

(iii) in subsection (5)(a), “or 138J(2)(a)” were omitted, and

(iv) in subsection (5)(b), “or 138J(5)(a)” were omitted;

(f) section 141A (power to make consequential amendments of references to rules etc).]

Textual Amendments

F16 Art. 4A inserted (1.7.2021) by Financial Services Act 2021 (c. 22), ss. 38(2), 49(5) (with s. 38(3)); S.I. 2021/739, reg. 3(t)

(1)

Directive 2003/41/EC of the European Parliament and of the Council of 3 June 2003 on the activities and supervision of institutions for occupational retirement provision (OJ L 235, 23.9.2003, p. 10).

(2)

Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers and amending Directives 2003/41/EC and 2009/65/EC and Regulations (EC) No 1060/2009 and (EU) No 1095/2010 (OJ L 174, 1.7.2011, p. 1).