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.
Keywords: Europe, EU, Insurance, Banking, Securities, PRIIPs, PRIIPs Regulation, Bonds, KID, Supervisory Statement, ESAs
Previous ArticleCFTC Proposes to Amend Margin Requirements for Uncleared Swaps
OSFI has set out the near-term priorities for federally regulated financial institutions and federally regulated private pension plans for the coming months until March 31, 2022.
Under the Italian G20 Presidency, BIS Innovation Hub and the Italian central bank BDI launched the second edition of the G20 TechSprint on the lookout for innovative solutions to resolve operational problems in green and sustainable finance.
EBA proposed the regulatory technical standards on a central database on anti-money laundering and countering the financing of terrorism (AML/CFT) in EU.
ECB published its response to the targeted EC consultation on the review of the bank crisis management and deposit insurance framework in EU.
ACPR published Version 1.0.0 of the RUBA taxonomy, which will come into force from the decree of January 31, 2022.
BCBS, CPMI, and IOSCO (the Committees) are inviting entities that participate in market infrastructures and securities markets through an intermediary as well as non-bank intermediaries to complete voluntary surveys on the use of margin calls.
ECB published Decision 2021/752 to amend Decision 2019/1311 on the third series of targeted longer-term refinancing operations or TLTRO III.
The Central Bank of Ireland published Version 2.7 of the draft credit data template and rules for monthly AnaCredit reporting by banks.
OSFI proposed revisions to the Basel Capital Adequacy Reporting (BCAR) and leverage requirements returns for the 2023 reporting, with the comment period ending on July 09, 2021.
EBA published a discussion paper on review of the standardized nonperforming loans (NPL) transaction data templates, along with the proposed revised NPL data templates.