ESA Joint Committee · priips-124 Final

Could you provide an example of the ‘dividends served by the shares held in the portfolio of the funds, shall the dividends not accrue to the fund’ mentioned in Point 5 (r) of Annex VI?

Regulation
PRIIPs
Answered
2017-07-04
Answer provided by
ESAs (EBA, ESMA, EIOPA)
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Question

Could you provide an example of the ‘dividends served by the shares held in the portfolio of the funds, shall the dividends not accrue to the fund’ mentioned in Point 5 (r) of Annex VI?

Answer

An example would be the following unit link contract. The unit link is based on the performance of a single stock. The insurer owns the stock and is receiving the dividends. The client has initially purchased the unit link at the market value of the stock. The claim of the client is subsequently valued as the current value of the stock (without reinvestment of the dividends).
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This Q&A is published by ESA Joint Committee (EBA, ESMA, EIOPA) and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

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