On 12 November 2026, the European Parliament rejected the provisional agreement on the Omnibus Directive of the Retail Investment Strategy (RIS). This brings the adoption of the main component of the RIS package to a temporary halt. The separate amendment to the PRIIPs Regulation (Packaged Retail and Insurance-based Investment Products) was, however, approved at first reading.
The vote marks a significant change of course. Following the political agreement reached between the European Parliament and the Council in December 2025 and its endorsement by the Parliament’s Committee on Economic and Monetary Affairs (ECON) in June 2026, the RIS texts had been expected to receive formal approval before the end of 2026.
However, in the plenary vote, 286 Members of the European Parliament voted in favour of the Omnibus Directive, 300 voted against and 23 abstained.
Why was the agreement rejected?
The vote reflects differing views on how Europe can better protect retail investors while encouraging greater participation in capital markets.
For some MEPs, the compromise did not go far enough in terms of investor protection, transparency and the prevention of conflicts of interest. Others considered the regulatory framework too complex and insufficiently aligned with the objective of making investment more accessible.
What does this mean for insurance distribution?
The rejected Omnibus Directive contained a substantial part of the proposed RIS reforms, including amendments to the Insurance Distribution Directive (IDD) and the Markets in Financial Instruments Directive II (MiFID II).
For insurance brokers, the proposed new rules concerning insurance-based investment products (IBIPs) were particularly relevant.
These included:
- Value for Money: new requirements for assessing costs, performance and the value that investment products deliver to customers.
- Remuneration and inducements: additional conditions for assessing remuneration and ensuring compliance with the client’s best interests.
- Advice and client information: amendments to the rules on suitability, appropriateness and disclosure requirements.
- Product governance: additional requirements concerning product design, assessment and distribution.
Following the rejection, these proposed amendments cannot be introduced through the legislative process originally envisaged.
Value for Money: more than a comparison of costs
One of the key areas of attention remains how the value of a product should be assessed.
The underlying principle of Value for Money is that customers should receive appropriate value for the costs they pay. The challenge lies in how this is assessed in practice.
Comparing costs and performance can provide useful information, but it does not necessarily capture all the characteristics that matter to an individual customer.
The quality of professional advice is also relevant. Advice helps customers not only compare products but also assess their financial needs, risk tolerance and long-term objectives.
An overly standardised assessment risks failing to account sufficiently for these differences. This could affect product diversity and the ability to offer solutions tailored to individual customer needs.
PRIIPs Regulation approved at first reading
This reform modernises the Key Information Document, KID for packaged retail and insurance-based investment products. It aims, among other things, to provide clearer product information, revised performance scenarios and improved accessibility through digital channels.
The text still requires formal adoption by the Council and can therefore proceed through the legislative process separately from the Omnibus Directive.
What happens to the Level 2 work?
In our previous communication, we noted that attention was shifting towards the practical implementation of RIS, particularly the development of more detailed Level 2 rules.
The European Commission had asked EIOPA to develop technical advice on several aspects of the proposed IDD amendments, including Value for Money, product governance, inducements and simplification of the customer journey.
Following the rejection of the provisional agreement on the Omnibus Directive, the future of these implementing measures has also become uncertain. Without adopted primary legislation, the corresponding new obligations cannot take effect according to the timetable originally envisaged.
What happens next?
The rejection does not mean that the Omnibus Directive has been definitively abandoned. The European Parliament may consider new amendments and hold another vote on the text. Its final content and the legislative timetable remain uncertain.
Nevertheless, the underlying European ambition remains as relevant as ever. In its 2027 Work Programme, the European Commission also confirms the Savings and Investments Union (SIU) as a priority: mobilising more household savings for long-term investment, economic growth and European competitiveness.
The question is how regulation can best support this objective. Alongside investor protection, accessible and diverse products, high-quality advice and room for innovation are also essential.
Becobra will continue to monitor developments together with BIPAR, with particular attention to proportionality and the practical implications of new rules for insurance distribution.
