Researchers from Charles University Publish Research in Legal Issues (European Protection of Retail Investors in Insurance-Based Investment Products: Product Interventions under PRIIPs): Legal Issues

2022 MAR 23 (NewsRx) -- By a News Reporter-Staff News Editor at NewsRx Policy and Law Daily -- Current study results on legal issues have been published. According to news reporting originating from Charles University by NewsRx correspondents, research stated, “The main goal of the Packaged Retail and Insurance-based Investment Products Regulation (PRIIPs) is to enhance investor protection standards for retail investors, in particular enabling them to better understand and compare the key features, risk, rewards and costs of different PRIIPs, through access to a short and consumer-friendly Key Information Document (KID).”

Our news reporters obtained a quote from the research from Charles University: “The regulation does not regulate advertisement information and does not aim to intervene in the measures associated with particular products otherways than in connection with the investment component. However, it contains authorisation for both EIOPA and the national regulators to set up remediation measures and restrict the distribution of particular products with investment component or particular types of financial activities. PRIIPs thus presents a kind of negative regulation of product development. The envisaged intervention mechanism is similar to those established in the framework of MiFID II and MiFIR. The authors mainly use the research methods of legal comparison, critical analysis, synthesis and deduction. The objective of the study is to clarify the impact of the above-mentioned rights of the regulatory bodies to the autonomy of will and the freedom of contract.”

According to the news editors, the research concluded: “The result of this study implies that the restrictive measures envisaged by PRIIPs may be applied only ultima ratio and are associated with private law liability.”

For more information on this research see: European Protection of Retail Investors in Insurance-Based Investment Products: Product Interventions under PRIIPs. International Investment Law Journal, 2021,1(2):115-123. The publisher for International Investment Law Journal is ADJURIS - International Academic Publisher.

Our news journalists report that more information may be obtained by contacting Alexander Kult, Department of Financial Law and Financial Science, Faculty of Law, Charles University, Czech Republic. Additional authors for this research include Jan Skrabka.

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