Featured Product

    ESAs Issue Advice on PRIIPs with Environmental or Social Objectives

    July 28, 2017

    The Joint Committee of the ESAs submitted a Technical Advice to the EC to set minimum requirements that “manufacturers” of packaged retail and insurance-based investment products with environmental or social objectives (EOS PRIIPs) should comply with, to ensure that they offer products meeting the needs of retail investors. ESAs also published a summary of comments on consultation paper (CP-17-002) on the EOS PRIIPs.

    The Technical Advice includes summaries of the responses received, the ESAs’ assessments of the responses, and sets out the final advice of the ESAs as a basis for the delegated acts to be adopted by the EC. The Technical Advice includes an impact assessment in view of different policy options that were considered by the ESAs in preparing the Technical Advice. The manufacturer of an EOS PRIIP is required to install specific governance measures to ensure that environmental or social objectives of the product are met on an ongoing basis. Furthermore, the product has to demonstrate to retail investors throughout the investment process the relevance of these objectives. In its Advice, the ESAs addressed four areas of PRIIPs with environmental or social objectives and recommended that a PRIIP manufacturer should:

    Target environmental or social objectives has to clearly specify these objectives, together with an appropriate and proportionate strategy on how to achieve them

    Disclose to the retail investors the objectives and how these will be achieved

    Install and document governance and monitoring measures, where the latter need to be proportionate to the objectives and strategy how to achieve the objectives

    Conduct regular reviews on the progress made in achieving the specified and disclosed objectives

    Acknowledging the cross-sectoral dimension and the need for the rigorous assessment to address potential gaps, the ESAs specified, for each of these four areas, the required regulatory outcome and an assessment of existing rules. The ESAs concluded that at this time the establishment of specific and detailed standalone obligations for PRIIPs targeting specific environmental or social objectives would not be proportionate. Existing sectoral measures offer already, or are already in the process of putting in place, a sufficiently stringent and flexible basis for the sound regulation of PRIIPs targeting environmental and social objectives.

     

    Related Links

    Technical Advice (PDF)

    Summary of Comments (PDF)

    Consultation on EOS PRIIPs (PDF)

    Keywords: Europe, EU, Insurance, EOS PRIIP, Technical Advice, ESAs

    Featured Experts
    Related Articles
    News

    SEC Adopts Rules and Amendments Under Regulatory Regime for Swaps

    SEC announced that it took a significant step toward establishing the regulatory regime for security-based swap dealers (SBSDs) by adopting a package of rules and rule amendments under Title VII of the Dodd-Frank Act.

    September 19, 2019 WebPage Regulatory News
    News

    APRA Revises Standard on Margin Rules for Uncleared Derivatives

    APRA revised CPS 226, which is the prudential standard on margin and risk mitigation requirements for non-centrally cleared derivatives.

    September 19, 2019 WebPage Regulatory News
    News

    BIS Formalizes Agreement to Set Up Innovation Hub in Hong Kong SAR

    BIS and HKMA signed the Operational Agreement on the BIS Innovation Hub Center in Hong Kong Special Administrative Region (SAR).

    September 18, 2019 WebPage Regulatory News
    News

    PRA Proposal on Probability of Default and LGD Estimation

    PRA proposed, via the consultation paper CP21/19, an approach to implementing EBA’s recent regulatory products relating to Probability of Default (PD) estimation, Loss Given Default (LGD) estimation, and the treatment of defaulted exposures in the internal ratings-based (IRB) approach to credit risk.

    September 18, 2019 WebPage Regulatory News
    News

    PRA Issues Consultation on Prudent Person Principle Under Solvency II

    PRA, via the consultation paper CP22/19, has set out its proposed expectations for investment by firms, in accordance with the Prudent Person Principle (PPP).

    September 18, 2019 WebPage Regulatory News
    News

    CFTC Extends Comment Period for Proposals on Cross-Border Clearing

    CFTC announced that it is extending, until November 18, 2019, the comment period for the proposal for an alternative compliance framework for derivatives clearing organizations (DCOs) that are organized outside of U.S. and that do not pose substantial risk to the U.S. financial system.

    September 18, 2019 WebPage Regulatory News
    News

    BNM Publishes Financial Stability Review for the First Half of 2019

    BNM published Financial Stability Review for the first half of 2019.

    September 18, 2019 WebPage Regulatory News
    News

    APRA Observations from Thematic Review on Recovery Plans of Insurers

    APRA issued a letter to general insurers and life insurers, outlining observations from a recent thematic review on recovery planning by insurers.

    September 18, 2019 WebPage Regulatory News
    News

    FASB Issues Summary of Tentative Board Decisions at September Meeting

    FASB published a summary of the tentative decisions taken at its Board meeting in September 2019.

    September 18, 2019 WebPage Regulatory News
    News

    EIOPA Forms Consultative Expert Group on Digital Ethics in Insurance

    EIOPA established the Consultative Expert Group on Digital Ethics in Insurance to assist EIOPA in the development of digital responsibility principles in insurance.

    September 17, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3848