Anthony Miranti, PRIIPsHub's Head of Business Development, was happy to speak at SRP's Nordic Structured Products & Derivatives Conference on 27 September 2017.
Anthony was part of one of the panels, What Strategies Have Exchanges Adopted For The Furthering Of Structured Products, in which the following topics were discussed:
- How will MiFID 2 listing rules affect the listing of structured products?
- Providing a venue for the PRIIPs' Key Information Document.
- How can technology facilitate regulatory changes and requirements?
- Why aren't more products listed on exchange?
- Will single and multi-dealer platforms ever disintermediate exchanges?
- How to get better liquidity in secondary markets?
The conference provided an overall perspective on the state of play for structured markets, options and strategies for the future, as well as addressing the strategies for successfully implementing MiFID and PRIIPs, from a regulatory, technical and data perspective. Specific topics included a Global & Nordic market overview, where the focus was on the trends in product development, and how to create successful coordination between issuers and distributors.
The evening culminated with an Awards Dinner aimed at celebrating the industry's leaders.
The European Supervisory Authorities - EBA, ESMA and EIOPA - published further guidance on the Key Information Document (KID) requirements for Packaged Retail and Insurance-based Investment Products (PRIIPs).
The first set of questions was published on 4th July 2017 and contained 72 questions and answers. The updated Q&A contains 86 questions and answers.
The Q&A contains answers to questions covering the following areas: Market risk assessment, Methodology for assessing credit risk, Summary Risk Indicator, Performance Scenarios, Derivatives and Methodology for the calculation of costs.
The ESAs have published an additional document containing diagrams which explain the risk and reward calculations and also examples of calculations.
The European Supervisory Authorities (ESAs) have released the Technical Advice setting minimum requirements for manufacturers of Packaged Retail and Insurance-based Investment Products with Environmental or Social Objectives (EOS PRIIPs). In February 2017, the ESAs have published a consultation paper on the topic and the newly released technical advice takes into consideration the received responses.
In the newly released document, the ESAs address the following areas:
- Specific environmental or social objectives
- Disclosure of specific investment policy
- Governance procedures and controls
- Review of progress
Recommendations included in the Advice are the following:
- The PRIIP manufacturer targeting environmental or social objectives has to clearly specify these objectives, together with an appropriate and proportionate strategy for achieving them.
- The PRIIP manufacturer should disclose the objectives and how these will be achieved to retail investors.
- The PRIIP manufacturer should put in place governance and monitoring measures, the latter need to be proportionate to the objectives and strategy, and be well documented.
- The PRIIP manufacturer should conduct regular reviews on the progress.
European Securities and Markets Authority (ESMA) has released an updated Questions and Answers (Q&A) document on MiFID II/MiFIR.
There are two new questions included in the document, which are related to the following topics: recording the phone conversations & electronic communications and best execution.
Other topics in the document include:
- Suitability and appropriateness
- Record keeping
- Investment advice on an independent basis
- Underwriting and placing
- Inducements (research)
- Post-sale reporting
- Information on costs and charges
- Appropriateness / Complex Financial Instruments