ESAs provide additional guidance on the practical application of the PRIIPs Regulation on bonds

News

ESAs provide additional guidance on the practical application of the PRIIPs Regulation on bonds

29 October 2019

Regulatory News Alert

On 24 October 2019, the European Supervisory Authorities (ESAs) issued a Supervisory Statement targeting bond manufacturers and distributors within the European Union in order to advocate a level playing field of retail investor protection in the EU and promote an harmonized application by national competent authorities (NCAs) of the scope of the Regulation for packaged retail and insurance-based investment products (PRIIPs Regulation), regarding the determination of the type of bonds for which it is necessary to draw up a Key Information Document (KID).

The European Supervisory Authorities set up a guidance for national competent authorities to rely on, when supervising compliance with the requirements in Chapter I of the PRIIPs Regulation, as part of their risk-based supervision, to avoid divergent applications by the NCAs.

The ESAs recommend NCAs to monitor:

  • Whether PRIIP manufacturers draw up and publish KIDs on their website for bonds that fall within the scope of the PRIIPs Regulation;
  • Whether persons selling such bonds comply with the requirements in Article 13 of that Regulation. 

NCAs are required to take appropriate measures when identifying non-compliance with the above-mentioned requirements (including administrative steps).

 

Additional information

While the PRIIPs Regulation is being evaluated, the ESAs call for co-legislators to present amendments to the Regulation to clarify which financial instruments fall within the scope of the Regulation.

 

How can Deloitte help?

Deloitte’s advisory specialists and dedicated services will help you design and implement your business strategy in light of the future evolution of the regulatory framework and market trends.

With its broad array of services, our PRIIPs KID Reporting Services can help PRIIPs manufacturers comply with the upcoming PRIIPs requirements. Our experts can also advise on how assessing the implications of the new methodologies envisaged in this consultation paper.

With our Regulatory Watch Kaleidoscope service, Deloitte can also help you stay ahead of the regulatory curve to better manage and plan for upcoming regulations.

PDF - 163kb

Contacts

Xavier Zaegel
Partner – Capital Market/Financial Risk Leader
Tel : +352 45145 2748
xzaegel@deloitte.lu

Sylvain Crépin
Partner – Capital Markets/Financial Risk
Tel : +352 45145 4054
screpin@deloitte.lu

Pascal Martino
Partner – Banking Leader
Tel : +352 45145 2119
pamartino@deloitte.lu

 

 

Regulatory Watch Kaleidoscope service

Simon Ramos
Partner – IM Advisory & Consulting Leader
Regulatory Watch services co-Leader
Tel : +352 45145 2702
siramos@deloitte.lu

Jean-Philippe Peters
Partner – Risk Advisory
Regulatory Watch services co-Leader
Tel : +352 45145 2276
jppeters@deloitte.lu

Benoit Sauvage
Director – Regulatory Watch services coordinator
Tel : +352 45145 4220
bsauvage@deloitte.lu

Marijana Vuksic
Manager – Strategy, Regulatory & Corporate Finance
Tel : +352 45145 2311
mvuksic@deloitte.lu

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