ESA Joint Committee · priips-28 Final

What is the meaning of the term “underlying investments” in Annex II, Part 1, Points 4-6 for a PRIIP that is an Undertaking for Collective Investment (UCI)? In particular, do we need to look at the po

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

What is the meaning of the term “underlying investments” in Annex II, Part 1, Points 4-6 for a PRIIP that is an Undertaking for Collective Investment (UCI)? In particular, do we need to look at the portfolio of the UCI itself to determine which Category we should consider the PRIIP?

Answer

The determination of the PRIIPs’ Category addresses the PRIIP itself, and depends on the pay-off structure and the availability of data. If the pay-off of the UCI is linear, it would be classified as Category 2 provided there is enough data available for the calculation. If there is no data, it would be Category 1. If the pay-off is not linear (for example a structured UCITS), it would be a Category 3 product, provided the data history requirements are met.
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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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