EU Financial Regulatory Q&A Database

Some fees are paid from the fund/investors to the manager based on the narrowing of the share price to NAV discount on a closed-ended listed fund. Should this type of fee be classed as a performance f

PRIIPs

In the case of private Equity, infrastructure and other similar funds where the investments to be made by those funds are unknown at the date of creation/investment in the fund, how to anticipate cost

PRIIPs

Point 80 of Annex VI specifies that “the costs are assessed on an ‘all taxes included’ basis. Which types of taxes are referred to in this point?

PRIIPs

At what frequency must the Recurring costs and Incidental costs be calculated?

PRIIPs

Could you provide an example of the provisioned fees for specific treatment of gain and losses, which are referred to in Point 5 (d) of Annex VI?

PRIIPs

Should entry and exit costs under the table ‘Composition of costs’ of Annex VII be recalculated as an impact per year based on the recommended holding period instead of a RIY figure? No, the calculati

PRIIPs

For new funds with performance fees, is it possible to refer to an appropriate benchmark for estimating the relevant returns of a peer group as foreseen in Point 24(b)(ii) second subparagraph of Annex

PRIIPs

Are portfolio costs for traditional endowment insurances to be taken into account in the summary cost indicator of the KID?

PRIIPs

According to the Point 37 of Annex VI ‘If the PRIIP manufacturer is unable to distinguish the relevant implicit costs to be disclosed as referred to in Point 29 of this Annex using the difference betw

PRIIPs

What value should be input into portfolio transaction costs of PRIPs other than investment funds?

PRIIPs

Is it correct to say that for the purpose of the Points 36 and the following provisions, while the fair value of the product needs to be in line with accounting standards, it does not have to be neces

PRIIPs

What could be the ‘reference indexes’ mentioned in Point 21(c)(i) of the Annex VI of the Commission Delegated Regulation?

PRIIPs

According to Point 33 (b) of Annex VI, the costs of the underlying shall be taken into account in the list of costs of PRIPs other than investment funds. How should this requirement be understood in t

PRIIPs

Should transaction costs be calculated the same way in the ‘Composition of costs’ and the ‘Cost over time’ table? Yes, in both cases, transaction costs should be calculated according to Point 66 and t

PRIIPs

According to Point 21 of the Annex VI of the Commission Delegated Regulation for PRIIPs that have been operating less than 3 years transaction costs may be calculated as an average of the actual trans

PRIIPs

- Guidance on the methodology described in Point 21(c)(ii) to estimate transaction costs: 3. What could be the ‘comparable information’ mentioned in Point 21 (c) (ii) of the Annex VI of the Commission

PRIIPs

Are we right to assume that the bootstrapping of equity baskets should also be based on a principal component decomposition (at least for baskets of more than two underlyings)? On which rule should th

PRIIPs

Could you provide an example of the ‘dividends served by the shares held in the portfolio of the funds, shall the dividends not accrue to the fund’ mentioned in Point 5 (r) of Annex VI?

PRIIPs

The principal component analysis of Annex II, Point 23 ensures the consistent simulation of curves. Is it mandatory to use this method also for PRIIPs that depend on only one interest rate underlying,

PRIIPs

For PRIIPs that allow for investment in underlying instruments of a different nature, which are classified in different groups for risk calculation, how should the Summary Risk Indicator (SRI) be calc

PRIIPs

For products with an automatic early-redemption feature, the holding periods might differ for each of the simulations. What value of T, related to the formula for the calculation of the MRM, the lengt

PRIIPs

Does the formula in Annex II Point 17 use the simulated value of the PRIIP divided by its initial value? Should the calculation of VEV post-issuance be based on the ratio of the simulated value divide

PRIIPs

The MRM class determination for Category 3 PRIIPs, as specified in Annex II, Point 16, states that the “[…] VaR shall be the value of the PRIIP at the 97.5% confidence level […]”. Since the formula in

PRIIPs

If the recommended holding period (RHP) of the PRIIP is less than one year, how should performance and cost figures be presented in the KID? Point 45 of Annex IV and point 76a of Annex VI of the Deleg

PRIIPs

Is the provision in Annex II, Part 1, Point 14 (b) applicable where a fund has sufficient history?

PRIIPs

Could you specify which types of costs of capital guarantee provided by a third party guarantor are those mentioned in Point 5 (i) of Annex VI?

PRIIPs

While financing costs related to borrowing (provided by related parties)” are recognised as a recurring cost in Point 5(h) of Annex VI, could you confirm that overdraft charges on a bank account opera

PRIIPs

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

PRIIPs

Does Point 53 of Annex VI apply inter alia to insurance-based investment products (unit-linked products as well as non-unit-linked products) in which the capital provided by investors is invested in U

PRIIPs

Will it be possible for the manufacturer to include certain products, such as leveraged products, voluntarily in “Category 1” for the purposes of the market risk assessment?

PRIIPs

It appears that unit-linked insurance products without guarantees would fall into Category 2.

PRIIPs

Clarification is necessary on the specific currency risks which will be covered by Element C of Annex III of the Commission Delegated Regulation. Clarification is necessary for PRIIPs distributed simu

PRIIPs

The main difference between Category 2 and Category 3 is whether the condition of “constant multiple” is fulfilled in Annex II, Part 1, Point 5. Would it be correct to treat unit-linked insurance prod

PRIIPs

Are PRIIPs with unconditional capital protection categorised as Category 2 or Category 3?

PRIIPs

Would a hedge fund that meets the following criteria be considered a Category 1 or Category 3 PRIIP?

PRIIPs

Independence of management boards and supervisory functions - Group links, independence and cooling-off periods

Undertakings for Collective Investment in Transferable Securities Directive (UCITS) Directive 2009/65/EC

Speculative immovable property financing

Regulation (EU) No 575/2013 (CRR) · Art. 4, 128

Use of bona fide estimates for the determination of the size of a corporation

Regulation (EU) No 575/2013 (CRR) · Art. 153, 162

Systemic risk buffer requirement calculation

Directive 2013/36/EU (CRD) · Art. 133

Contingent liabilities within the Merchant Services Industry

Regulation (EU) No 575/2013 (CRR) · Art. 99

Short positions in financial institution capital instruments

Regulation (EU) No 575/2013 (CRR) · Art. 36, 45

Written Credit Derivatives Add-On MR/NR Netting

Regulation (EU) No 575/2013 (CRR) · Art. 429d

CVA Standardised Method for Securities Financing Transactions (SFTs)

Regulation (EU) No 575/2013 (CRR) · Art. 384

Private ownership of a bridge institution or an asset management tool

Directive 2014/59/EU (BRRD) · Art. 40, 42

O-SII buffer / Capital conservation buffer application

Directive 2013/36/EU (CRD) · Art. 131, 141a

Calculation of the Countercyclical Capital Buffer

Directive 2013/36/EU (CRD) · Art. 140

Reporting of assets lending on an unsecured basis

Regulation (EU) No 575/2013 (CRR) · Art. 425

Information on cost and charges

Markets in Financial Instruments Directive II (MiFID II) Directive 2014/65/EU- Investor Protection and Intermediaries

Information on cost and charges

Markets in Financial Instruments Directive II (MiFID II) Directive 2014/65/EU- Investor Protection and Intermediaries

Information on cost and charges

Markets in Financial Instruments Directive II (MiFID II) Directive 2014/65/EU- Investor Protection and Intermediaries