ESA Joint Committee · priips-134 Final

According to Point 33 (b) of Annex VI, the costs of the underlying shall be taken into account in the list of costs of PRIPs other than investment funds. How should this requirement be understood in t

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

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Question

According to Point 33 (b) of Annex VI, the costs of the underlying shall be taken into account in the list of costs of PRIPs other than investment funds. How should this requirement be understood in the case of a structured product or derivative linked to the performance of a fund?

Answer

First, it should be noted that if these costs are already taken into account (e.g. through the estimate of costs embedded in the price), these costs should not be accounted twice in the summary cost indicators, according to Point 77 of Annex VI. In addition, the methodology set out in the case of investment funds in Points 5 (l), 5 (m) and 5 (n) should equally apply in the case of PRIPs other than investment funds (as well as in the case of insurance-based investment products which invest in funds).

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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