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CSSF: Joint ESA Supervisory Statement – application of scope of the PRIIPs Regulation to bonds

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Last Updated on June 3, 2025 by Arnaud Collignon

Understanding the Joint ESA Supervisory Statement on PRIIPs Regulation

The Joint European Supervisory Authorities (ESAs) have released a supervisory statement regarding the application of the Packaged Retail and Insurance-based Investment Products (PRIIPs) regulation to bonds. This statement aims to clarify how the PRIIPs regulation applies to various types of bonds, ensuring that investors receive the necessary information to make informed decisions.

Key Highlights of the Supervisory Statement

  • Scope of PRIIPs Regulation: The regulation applies to a wide range of investment products, including bonds, but there are specific considerations for different types of bonds.
  • Transparency Requirements: Issuers of bonds must provide clear and comprehensible information to investors, ensuring transparency in the investment process.
  • Risk Assessment: The statement emphasizes the importance of assessing the risks associated with bond investments, which must be communicated effectively to potential investors.
  • Investor Protection: The ESAs stress the need for adequate investor protection measures, particularly for retail investors who may be less familiar with complex financial products.

Implications for Bond Issuers

Bond issuers must take note of the following implications stemming from the supervisory statement:

  • Ensure compliance with the PRIIPs regulation when offering bonds to retail investors.
  • Provide a Key Information Document (KID) that meets the regulatory requirements, offering clear insights into the product.
  • Regularly review and update the information provided to investors to maintain compliance and transparency.

Conclusion

This supervisory statement serves as a crucial guideline for bond issuers and investors alike, promoting a better understanding of the PRIIPs regulation and enhancing investor protection. By adhering to these guidelines, issuers can foster trust and transparency in the bond market.

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