ESA Joint Committee · priips-135 Final

Is it correct to say that for the purpose of the Points 36 and the following provisions, while the fair value of the product needs to be in line with accounting standards, it does not have to be neces

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

Is it correct to say that for the purpose of the Points 36 and the following provisions, while the fair value of the product needs to be in line with accounting standards, it does not have to be necessarily equal to any accounting fair value (as accounting standards generally allow for provisions and adjustments to the fair value which are at book or portfolio level, rather at transaction level)?

Answer

Yes, as mentioned in Point 40 of Annex VI, the rules referred to in Point 39 of this Annex VI on fair value shall aim at outlining a valuation process that complies with the applicable accounting standards in relation to fair value and the principles outlined in Points 40 - 46 of the same Annex. This does not mean that the value should be necessarily equal to the accounting fair value.
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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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