EU Financial Regulatory Q&A Database

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

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

Is a look-through only required for underlying investments above a certain threshold within the portfolio of the fund of fund? When dealing with fund of fund or other multi-layer instruments, does the

PRIIPs

Using the ‘reference indexes’ mentioned in the question above, how should the ‘average bid-ask spreads’ mentioned in Point 21(c)(i) of the Annex VI of the Commission Delegated Regulation be estimated?

PRIIPs

How would the benefits from securities lending (compared to the costs as mentioned in Point 5 (b) (v) of Annex VI) be presented in the KID?

PRIIPs

Point 3 (d) of Annex VI indicates that subscription fee includes taxes. Would this include the following types of taxes: VATs, FTTs, stamp duties?

PRIIPs

Can a PRIIP manufacturer supplement the information described in Annex IV, point 30, of the Commission Delegated Regulation for the pay-off graph to ensure that it is comprehensible and meaningful for

PRIIPs

Can non-ETDs use the same treatment as ETDs?

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

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

Is it possible for an insurance company to satisfy the criteria in Point 47 of Annex II, Part 2?

PRIIPs

Is it fair to assume that a EU-regulated UCITS fund will always meet the requirements under Annex II Point 46 (a) and (b) and thus the CRM for a UCITS fund will always be equal to 1. If not under what

PRIIPs

Please clarify the requirement in Point 38 of Annex II, part II: where a credit assessment is not available under both (a) and (b), i.e. there is not both a credit assessment assigned to the PRIIP and

PRIIPs

How should derivatives be weighted when applying Point 40 of Annex II?

PRIIPs

In case a PRIIP is a fund of funds, where the underlying investment is a fund which is in turn investing in another fund, should we consider the funds in which the PRIIP is investing in directly as th

PRIIPs

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.

PRIIPs

For a PRIIP with an MRM of 6, the aggregate SRI will always be 6. Therefore, is it still necessary to assess the credit risk for a PRIIP with an MRM of 6?

PRIIPs

In which situations does the credit risk of the underlyings of a PRIIP need to be assessed? In particular, a) what approach should be taken for stocks and UCITS investing in stocks? And b) If a positi

PRIIPs

A fully protected product can be allocated to MRM 1. Is this still the case if the underlying assets do not have the required minimum historical data, or is the product automatically allocated to MRM

PRIIPs

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

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

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 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

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

[Question deleted] (Revised 21 December 2022) 9. [Question deleted] (Revised 21 December 2022) 10. How should I calculate the transaction costs associated with an IPO or other offering of primary sec

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

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

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

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

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

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

Post-sale reporting

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

Post-sale reporting

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

Post-sale reporting

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