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Title:EC Consultation PRIP's
Date of publishing:February 18, 2011
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EC Consultation PRIP's
February 18, 2011

The European Commission launched a consultation on the topic of Packaged Retail Investment Products (PRIPs) initiative, to which the AI CSRR responded: AI CSRR Response. The PRIP’s initiative is about the scope, the legislative approach & the content of a possible regime for product disclosure including ESG matters in retail investment. One paragraph is particularly interesting:

Labeling and enhanced transparency of PRIPs in relation to socially responsible investments
The European Commission recently announced, in the Single Market Act, a wide package of measures for ensuring prosperity and jobs.20 As part of this work, it is considering the possibility of a social business initiative, to look for measures to encourage and support social entrepreneurship. This may have some relevance for PRIPs KIIDs. For instance, these documents could be an important means for ensuring investors receive relevant information about the social and environmental impacts of the investments they contemplate. In addition, where a product is labeled by its manufacturer as 'green', 'ethical' or 'socially responsible' (or such other relevant labels or claims as may be relevant), an issue arises as to the transparency of such labels and the importance of ensuring they are not misleading. It might also be argued that a lack of consistency across the EU in the use of such labeling limits the development of the market in such investments. Options might be explored for raising transparency, comparability and consistency around the use by product manufacturers of labeling to denote socially responsible investments (e.g. 'green' 'ethical').

More information about the PRIP’s initiative and the consultation can be found on the EC website.