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

    BIS Examines Use of Big Data and Machine Learning at Central Banks

    BIS published a paper that provides an overview on the use of big data and machine learning in the central bank community.

    March 04, 2021 WebPage Regulatory News
    News

    APRA Finalizes Reporting Standard for Operational Risk Requirements

    APRA finalized the reporting standard ARS 115.0 on capital adequacy with respect to the standardized measurement approach to operational risk for authorized deposit-taking institutions in Australia.

    March 03, 2021 WebPage Regulatory News
    News

    ECB Publishes Guide for Determining Penalties for Regulatory Breaches

    ECB published a guide that outlines the principles and methods for calculating the penalties for regulatory breaches of prudential requirements by banks.

    March 02, 2021 WebPage Regulatory News
    News

    MAS Sets Out Good Practices to Manage Operational Risks Amid COVID

    MAS and The Association of Banks in Singapore (ABS) jointly issued a paper that sets out good practices for the management of operational and other risks stemming from new work arrangements adopted by financial institutions amid the COVID-19 pandemic.

    March 02, 2021 WebPage Regulatory News
    News

    ACPR Announces New Data Collection Application for Banks and Insurers

    ACPR announced that a new data collection application, called DLPP (Datalake for Prudential), for collecting banking and insurance prudential data will go into production on April 12, 2021.

    March 02, 2021 WebPage Regulatory News
    News

    BCB Maintains CCyB at 0%, Initiates First Cycle of Regulatory Sandbox

    BCB announced that the Financial Stability Committee decided to maintain the countercyclical capital buffer (CCyB) for Brazil at 0%, at least until the end of 2021.

    March 02, 2021 WebPage Regulatory News
    News

    EIOPA Launches Study on Non-Life Underwriting Risk in Internal Models

    EIOPA has launched a European-wide comparative study on non-life underwriting risk in internal models, also kicking-off of the data collection phase.

    March 01, 2021 WebPage Regulatory News
    News

    SRB Publishes Overview of Resolution Tools Available in Banking Union

    SRB published an overview of the resolution tools available in the Banking Union and their impact on a bank’s ability to maintain continuity of access to financial market infrastructure services in resolution.

    March 01, 2021 WebPage Regulatory News
    News

    EBA Consults on Pillar 3 Disclosure Standards for ESG Risks Under CRR

    EBA is consulting on the implementing technical standards for Pillar 3 disclosures on environmental, social, and governance (ESG) risks, as set out in requirements under Article 449a of the Capital Requirements Regulation (CRR).

    March 01, 2021 WebPage Regulatory News
    News

    ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting

    ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting

    March 01, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6655