According to the Point 37 of Annex VI ‘If the PRIIP manufacturer is unable to distinguish the relevant
implicit costs to be disclosed as referred to in Point 29 of this Annex using the difference betw

Question

According to the Point 37 of Annex VI ‘If the PRIIP manufacturer is unable to distinguish the relevant
implicit costs to be disclosed as referred to in Point 29 of this Annex using the difference between the
price and the fair value, it shall liaise with the issuer of the different components of the product, or
the relevant body, in order to gather the relevant information on those costs’. Could you provide with
an example of such a situation?

ESA Joint Committee (EBA, ESMA, EIOPA) · Accepted Answer

This situation in particular occurs when a contractual arrangement between two entities (e.g. one being
the PRIIP manufacturer and the other the issuer of one or more derivative components used by the
PRIIP manufacturer to structure its PRIIP) is such that the PRIIP manufacturer is not aware of the amount
of hedging cost of a specific PRIIP.

According to the Point 37 of Annex VI ‘If the PRIIP manufacturer is unable to distinguish the relevant implicit costs to be disclosed as referred to in Point 29 of this Annex using the difference betw

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