On 24 October 2019, the Joint Committee of European Supervisory Authorities (ESAs) published a joint supervisory statement on the application of the Regulation on key information documents for packaged retail and insurance-based investment products (PRIIPs) to bonds.
The ESAs state that uncertainty over the application of the PRIIPs Regulation to bonds has led to negative consequences for the functioning of bonds markets, and access to these markets by retail investors. Further, this uncertainty risks divergent applications by national competent authorities (NCAs) with negative consequences for achieving uniform levels of retail investor protection and a level playing field among product manufacturers and distributors within the EU.
To address this uncertainty and to promote a consistent application of the PRIIPs Regulation by NCAs, the ESAs have produced guidance on the practical application of the provisions determining the scope of the PRIIPs Regulation to different types of common bonds features. The guidance can be found in the annex to the statement.