On 7 June 2023, the Association for Financial Markets in Europe (AFME) published updated guidelines on MiFID II product governance (PG) and Packaged retail investment and insurance products (PRIIPs) Regulation regimes: An approach for the equity-linked markets.

The guidelines set out an approach for the equity-linked (convertible and exchangeable bond) markets (i.e. syndicated cross border convertible and exchangeable bond issuance), to the PG and PRIIPs regimes, which came into effect on 1 January 2018. The approach in this paper does not purport to be exhaustive or exclusive, but is anticipated to be useful to the extent transaction parties wish to minimise deal/syndicate-level deliberations, to maximise execution efficiency and speed.

The guidelines have been updated to reflect changes to the EU product governance regime effective from 22 November 2022, as reflected in amendments to the MiFID II Delegated Directive and European Securities and Markets Authority’s guidelines on the EU MiFID II product governance obligations. It replaces the February 2021 version, including all schedules thereof.