Deadlock on structured product risk ratings frustrates issuers

Technical discussion paper on Priips-KID risk indicators leaves firms uncertain about final methodology

Frustration over risk indicators
Some fear the methodologies are too complex for retail

European issuers are no closer to understanding how to create risk indicators for structured products under regulation likely to come in next year, as supervisors kept their options open in a technical discussion paper released on June 23.

The document issued by the European Supervisory Authorities (ESAs) deals with risk, performance scenarios and cost disclosures in key information documents (KIDs) required for the Packaged Retail and Insurance-based Investment Products (Priips) framework. It i

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