ESA Joint Committee · priips-23 Final

Will it be possible for the manufacturer to include certain products, such as leveraged products, voluntarily in “Category 1” for the purposes of the market risk assessment?

Name: Will it be possible for the manufacturer to include certain products, such as leveraged products, voluntarily in “Category 1” for the purposes of the market risk assessment?: ESA Joint Committee Q&A — EU Financial Regulatory Q&A
Creator: ESA Joint Committee (EBA, ESMA, EIOPA)
License: https://creativecommons.org/licenses/by/4.0/

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

More Q&As on this regulation →

⚠

Joint Committee Q&As are published in consolidated PDF documents without explicit question/answer delimiters. Section boundaries below are identified automatically and may occasionally be imprecise.

Question

Will it be possible for the manufacturer to include certain products, such as leveraged products, voluntarily in “Category 1” for the purposes of the market risk assessment?

Answer

It is not possible to voluntarily include a PRIIP in any Category. The analysis of the appropriate categorisation must be done. For example, leveraged products that could lead retail investors to lose more than their initial investment would be Category 1. Other types of leveraged products, for example those that track a reference value that cannot fall below zero, may be Category 2 or 3.

View original on ESA Joint Committee (EBA, ESMA, EIOPA) ↗

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.

Similar Q&As

For PRIIPs that allow for investment in underlying instruments of a different nature, which are classified in different groups for risk calculation, how should the Summary Risk Indicator (SRI) be calc

Answered 2017-07-04

It appears that unit-linked insurance products without guarantees would fall into Category 2.

Answered 2017-07-04

If the PRIIP is an AIF investing into linear products yet the leverage on investments changes throughout time (therefore leverage factor is non-constant but underlying exposures are linear), would thi

Answered 2021-12-17

Key information document (KID), Packaged retail and insurance-based investment products (PRIIPs)

Answered 2025-12-02

According to point 16 (a) of Annex IV, the assessment of the appropriateness of a benchmark or proxy depends, inter alia, on the risk-return profile where the benchmark or proxy and the PRIIP fall int

Answered 2025-12-05

📋 Track EU financial regulation continuously

Forseti monitors EU financial regulation and delivers personalised alerts anchored to verified official sources.

Start free trial → Learn more

14-day free trial. No credit card required.