Featured Product

    ESAs Statement on Application of Scope of PRIIPs Regulation to Bonds

    October 24, 2019

    ESAs issued a supervisory statement to promote consistent application, by national competent authorities, of the scope of the regulation for packaged retail and insurance-based investment products (PRIIPs Regulation) to bond markets. The supervisory statement seeks to mitigate the risk of divergent application, by national competent authorities, for determining the type of bonds for which it is necessary to draw up a Key Information Document (KID). The Annex to the statement provides guidance on the practical application of the provisions determining the scope of the PRIIPs Regulation.

    In the view of ESAs, uncertainty over application of the PRIIPs Regulation to bonds has led to negative consequences for functioning of bond markets and for access to these markets by retail investors. There are also risks of divergent applications, by national competent authorities, with negative consequences for achieving uniform levels of retail investor protection and a level playing field among product manufacturers and distributors within the EU. To promote a consistent application of the scope of the PRIIPs Regulation to bond markets, ESAs recommend that national competent authorities apply the guidance set out in the Annex to the statement when supervising compliance with the requirements in Chapter I of the PRIIPs Regulation. To fully address the risk of divergent applications by national competent authorities, ESAs recommend that during the upcoming review of the PRIIPs Regulation, the co-legislators introduce amendments to the Regulation to more precisely specify which financial instruments fall within the scope of the regulation. The overall objective of this statement is to achieve a high, effective, and consistent level of regulation and national supervision while promoting a level playing field and the protection of retail investors. 

     

    Related Links

    Keywords: Europe, EU, Insurance, Banking, Securities, PRIIPs, PRIIPs Regulation, Bonds, KID, Supervisory Statement, ESAs

    Related Articles
    News

    EBA Analyzes Impact of Unwind Mechanism of Liquidity Coverage Ratio

    EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.

    November 19, 2020 WebPage Regulatory News
    News

    ECB Outlines Views on Possible Changes to AnaCredit Rule and TLTROs

    In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.

    November 19, 2020 WebPage Regulatory News
    News

    IASB Begins First Phase of Post-Implementation Review of IFRS 9

    IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Report Examines Progress in Resolvability of Systemic Institutions

    FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.

    November 18, 2020 WebPage Regulatory News
    News

    EBA Benchmarks National Insolvency Frameworks Across EU

    EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Reports Assess Impact of Pandemic on Financial Stability

    FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.

    November 17, 2020 WebPage Regulatory News
    News

    RBNZ Consults on Implementation of Capital Review Changes

    RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.

    November 17, 2020 WebPage Regulatory News
    News

    IASB Announces Andreas Barckow as the New Chair from July 2021

    The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.

    November 17, 2020 WebPage Regulatory News
    News

    HKMA Consults on Capital Rules for Bank Equity Investments in Funds

    HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.

    November 17, 2020 WebPage Regulatory News
    News

    ESRB Supports Extension of Macro-Prudential Measure by Swedish FSA

    ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).

    November 17, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6153