ESA Joint Committee · priips-89 Final

What is the meaning of ‘1 year’ and ‘> 1 year’ in the table in paragraph 18 of Annex IV of PRIIPs L2? Specifically, we wonder whether ‘1 year’ encompasses all Recommended Holding Periods (RHPs) under

Regulation
PRIIPs
Answered
2025-05-05
Answer provided by
ESAs (EBA, ESMA, EIOPA)
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Question

What is the meaning of ‘1 year’ and ‘> 1 year’ in the table in paragraph 18 of Annex IV of PRIIPs L2? Specifically, we wonder whether ‘1 year’ encompasses all Recommended Holding Periods (RHPs) under 1 year?

Answer

Stress scenarios should be established for the recommended holding period and intermediate holding periods if any, in accordance with point 2 of Annex IV of the PRIIPs Delegated Regulation setting out that, ‘the stress scenario shall show intermediate periods where those periods are shown for the performance scenarios under point 1(a) to (c) of this Annex.’ The rules governing intermediate holding periods are set out in points 32 to 38 of Annex IV of the PRIIPs Delegated Regulation. Therefore, the table mentioned above in point 18(a) of Annex IV of the PRIIPs Delegated Regulation should be used to calculate the formula described in point 18(c) of the same Annex, taking into account the holding period for which this calculation is intended, i.e. the recommended holding period and intermediate period(s) if any. The figures in the table below the label ‘1 year’ should be applied for the calculation of the stress scenario where the holding period is 1 year or less.
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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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