The European Commission has announced it will delay the application date of the Insurance-Based Investment Products (PRIIPs) regulation.

This follows the decision of the European Parliament to reject the secondary legislation (Regulatory Technical Standards, RTS) on the PRIIPs Key Information Document (KID).

Hugh Savill, ABI director of regulation, said: “The ABI is pleased with the announcement to delay the implementation of the PRIIPs Regulation by one year. This will give insurers the much needed time to implement the complex requirements.

“The ABI has continuously engaged with EU and UK policymakers on this and we welcome that they have recognised the need for a delay.

“While this situation should not have arisen in the first place, we now hope that the right changes are made to RTS. Otherwise, the KID will not be a useful and meaningful document for UK consumers.

“We will continue to work with the FCA and EIOPA to ensure that the consumer-friendly objectives of the Regulation can be met.”