ESA Joint Committee · priips-49 Final

What is meant by unconditional protection of the capital (e.g. Point 24 of Annex II)?

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

What is meant by unconditional protection of the capital (e.g. Point 24 of Annex II)?

Answer

This means that irrespective of market movements the amount invested in the PRIIP is protected up to a prescribed level. The term refers only to market risk and therefore excludes losses in relation to the obligor's default (i.e. credit risk).
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.

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