ESMA published the results of its study of the EU market in structured retail products, from an investor protection perspective. The results were published as a part of the ESMA report on trends, risks, and vulnerabilities in EU. The research breaks down the EU market geographically into national retail markets and found a high degree of heterogeneity in the types of product sold.
The report identified that, although a wide array of structured products are available to retail investors across EU, each national market is concentrated around a small number of common types—namely capital protection products, yield enhancement products, and participation products. The analysis was performed both at an EU-wide level and also specifically in the French, German, and Italian retail markets. The analysis suggests that the search for yield has been a common driver of several changes in the distribution of product types. These products are a significant vehicle for household savings, although they remain complex and the net performance warrants a closer examination.
Keywords: Europe, EU, Securities, Investor Protection, Structured Products, TRV Reports, ESMA
Previous ArticleFASB Proposes Improvements for the 2019 US GAAP Reporting Taxonomy
BoE published a statistical notice (Notice 2020/9) explaining the approach for treatment of payment holidays on the profit and loss return or Form PL.
BoE updated the known issues document for the statistical reporting Forms AS and FV.
FED announced individual capital requirements for 34 large banks and these requirements go into effect on October 01, 2020.
SRB published a set of documents to give operational guidance to banks on implementation of the bail-in tool.
BIS published an update on the G20 TechSprint Initiative, which was launched in April 2020 and aims to highlight the potential for technologies to resolve regulatory compliance (regtech) and supervisory (suptech) challenges.
OSFI published a letter that provides an update on the milestones for the implementation of the IFRS 17 standard on insurance contracts.
EBA updated the report on the implementation of selected COVID-19 policies.
The Financial Stability Institute (FSI) of BIS published a brief note that examines the supervisory challenges associated with certain temporary regulatory relief measures introduced by BCBS and prudential authorities in response to the COVID-19 pandemic.
BCBS is consulting on the principles for operational resilience and the revisions to the principles for sound management of operational risk for banks.
BoE updated the reporting template for Form ER as well as the Form ER definitions, which contain guidance on the methodology to be used in calculating annualized interest rates.