1. Procedural issues and consultation of interested parties

According to the ESAs' Regulations, the ESAs conduct analysis of costs and benefits when drafting RTS, unless such analyses are disproportionate in relation to the scope and impact of the draft RTS concerned or in relation to the particular urgency of the matter.

The analysis of costs and benefits is undertaken according to an Impact Assessment methodology. This impact assessment document presents the key policy questions and the associated policy options considered in developing this amending RTS.

The RTS is based on the empowerments in Articles 8(5) and 10(2) of the PRIIPs Regulation. Since the provision in the RTS under the empowerment in Article 10(2) is only a minor consequential change, this impact assessment addresses primarily the impact of the provisions drafted under the empowerment in Article 8(5).

During this review the ESAs contributed to a consumer testing exercise undertaken by the European Commission which assessed retail investors' understanding and decision making regarding the presentation of performance scenarios and information on past performance (see Section 3 for further details). In relation to the performance scenarios methodology, the ESAs undertook extensive quantitative analysis to analyse the results obtained using different methodologies across a range of different PRIIPs (see Section 4.3 for further details). The results of these studies are also referred to in this impact assessment.