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 scope of the Packaged Retail and Insurance-based Investment Products (PRIIPs) regulation to bonds. This statement aims to clarify how the regulation applies to various types of bonds and the implications for both issuers and investors.
Key Highlights of the Supervisory Statement
- Scope of PRIIPs Regulation: The statement emphasizes that not all bonds fall under the PRIIPs regulation. It specifically addresses the criteria that determine whether a bond is classified as a PRIIP.
- Investor Protection: The ESAs stress the importance of ensuring that retail investors receive adequate information about the risks and features of bonds.
- Transparency Requirements: Issuers of bonds that qualify as PRIIPs must provide a Key Information Document (KID) to potential investors, detailing essential information in a clear and concise manner.
- Compliance Expectations: The statement outlines the expectations for compliance with the PRIIPs regulation, urging issuers to assess their products carefully.
Implications for Issuers and Investors
For issuers, this statement serves as a reminder to evaluate their offerings and ensure compliance with the PRIIPs regulation. For investors, it highlights the importance of understanding the nature of the bonds they are considering, particularly in terms of risk and return.
Conclusion
The Joint ESA Supervisory Statement is a crucial document for anyone involved in the issuance or investment of bonds. By clarifying the application of the PRIIPs regulation, it aims to enhance investor protection and promote transparency in the market.
External Links
- Joint ESA Supervisory Statement on PRIIPs Regulation
- European Securities and Markets Authority (ESMA)
- European Insurance and Occupational Pensions Authority (EIOPA)
- European Parliament
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