ESA Joint Committee · priips-55 Final

Where the investor has access to a compensation scheme for the investment amount of the KID, is it correct to assume that credit risk is zero? It is not correct to assume that there is no credit risk.

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

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Question

Where the investor has access to a compensation scheme for the investment amount of the KID, is it correct to assume that credit risk is zero? It is not correct to assume that there is no credit risk. A compensation scheme is not included in the CRM assessment. However, a narrative below the SRI (element J) indicates whether a compensation scheme is applicable and cross-refers to the section "What happens if [the name of the PRIIP manufacturer] is unable to pay out?

Answer

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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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