OREANDA-NEWS. Draft legislation designed to protect retail investors was rejected by MEPs on Wednesday as so “flawed and misleading” that it could actually lose them money. Unusually, it will be returned to the EU Commission for revision.

MEPs passed a resolution calling for changes to legislation on “packaged retail and insurance-based investment products” (PRIIPs) -- a market worth up to €10 trillion in Europe - by 602 votes to 4, with 12 abstentions.

Retail investors typically use PRIPPs to generate funds to pay a mortgage or for their children’s education.