The European Supervisory Authorities (ESAs) have submitted their technical advice to the European Commission (the Commission) to set minimum requirements, which manufacturers of PRIIPs with environmental or social (EOS PRIIPs) objectives should comply with to ensure their products meet the retail investors’ needs.
The ESAs addressed four areas: (i) specific environmental or social objectives, (ii) disclosure of specific investment policy, (iii) governance procedures and controls and (iv) review of progress.
The technical advice recommends that:
- the PRIIP manufacturer targeting environmental or social objectives has to clearly specify these objectives, together with an appropriate and proportionate strategy on how to achieve them;
• the PRIIP manufacturer should disclose to the retail investors the objectives and how these will be achieved;
• the PRIIP manufacturer has to install and well document governance and monitoring measures, where the latter need to be proportionate to the objectives and strategy how to achieve the objectives; and
• the PRIIP manufacturer should conduct regular reviews on the progress made in achieving the specified and disclosed objectives.
The technical advice can be found here .