How should the requirement to use data of an appropriate benchmark/proxy be interpreted where there is no, or insufficient, price data for the PRIIP or the underlying value. For example: - Would an op

- Do you agree that Point 14 of Annex II may also be applied for new funds or funds with daily observation of return lower than 2 years. When insufficient price data for the PRIIP or its underlying asset are available, data of an appropriate benchmark or proxy should be used. Such a PRIIP should not be assigned to a different Category unless no appropriate benchmark or proxy exists, in which case it shall be classified as a Category 1 PRIIP and a default MRM (MRM 6) will be assigned. The availability of data has no bearing on the applicability of Point 14 of Annex II. The MRM of a PRIIP based on a newly issued stock should be computed using an appropriate benchmark or proxy if available, until there is enough real data of the new stock. The Category of such a product then will not change once sufficient data becomes available. More specifically, in relation to the sub-questions above: - No – it would be a Category 3 PRIIP, though the simulation would require using the returns of a suitable proxy. - No – it is a Category 3 PRIIP. - Yes Point 14 may be applicable, but it depends on the nature of the investment policies or strategies and not on the availability of data. Point 14 can apply to new funds (and equally to funds with sufficient data history), but the requirements regarding sufficient data history or the use of a suitable benchmark or proxy still apply.