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
The European Supervisory Authorities (ESAs) - EIOPA, ESMA and EBA - published the first set of Q&A related to the Key Information Document (KID).
The Q&A contains answers to questions which cover the following areas: Market risk assessment, Methodology for assessing credit risk, the Summary Risk Indicator, Performance Scenarios, Derivatives and Methodology for the cost calculations.
Additional questions from different stakeholders are welcome to be sent to [email protected]