Deadlock on structured product risk ratings frustrates issuers
New consultation proposes four different methods that firms can use to construct a crucial component of their key information document for structured products, with no clarity over which one will become the regulatory technical standard
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
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