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Product release news – European ESG template (EET) v1.0

On March 14th, FinDatEx published the official EET Version 1.0.

LPA Voted Best RegTech at SRP 2022 Conference

Frankfurt am Main & London, 31 March 2022 – LPA, the capital market technology and advisory firm, is delighted to have won the award for best RegTech provider at the 2022 Structured Retail Products European annual conference.

UCITS/PRIIPs Distribution It’s Going to be a Nightmare

The FCA has completely buried the initial one-system objective with the formation of a UK version for PRIIP KIDs. Manufacturers of UCITS and PRIIPs that distribute their products to the EU and the UK will need to deal with three separate systems, an EU PRIIP KIDs for all PRIIPs distributed in the EU, a UCITS KIIDs for UCITS distributed in the UK and another UK PRIIP KIDs for PRIIPs (other than UCITS) distributed in the UK. Distributors will need to be very cautious about providing the right document for each combination of products and potential clients. The KI(I)Ds future turned uneven and complicated. The rest of 2022 is going to be very challenging for manufacturers and distributors as they now need to update their systems and disclosures to support the new regulatory amendments, and distributors need to train their personnel on the changes.

PRIIPs RTS v2: Concerns About Misleading Performance Scenarios

PRIIPs suffers lots of criticism around its methodology for Performance Scenarios. Both manufacturers and consumers claim the results are often too optimistic, since they are based on the last 5-year performances and these were positive. In an effort to solve these issues, the ESAs introduce in PRIIPs RTS v2 a new methodology for the calculation of the Favourable, Moderate and Unfavourable scenarios for most funds. Or more precisely, it applies to linear products, called Category 2 in PRIIPs terminology. The new methodology follows a back-testing approach over at least 10 years and the unfavourable scenario is based on the worst scenario found.

The end of the transition period is in sight. What particular challenges does the PRIIPs Regulation pose for real estate fund managers?

The end of the transition period is in sight. What particular challenges does the PRIIPs Regulation pose for real estate fund managers?

OTC Derivatives: How are they affected by the new PRIIPs RTS?

OTC Derivatives: How are they affected by the new PRIIPs RTS?

What are the new standards for PRIIPs KIDs, effective July 1st 2022?

What are the new standards for PRIIPs-KIDs effective July 1st 2022?

Comparison between UCITS SRRI and PRIIPs SRI

Comparison between UCITS SRRI and PRIIPs SRI

CRR II: A focus on greater transparency and enhanced standards for investment funds

CRR II: A focus on greater transparency and enhanced standards for investment funds

Increased transparency for PRIIPs KIDs: Holistic and automated reporting reduces costs and gives clients a more competitive edge

The regulatory dynamics on the capital market will remain high over the coming years. In 2022, following approval by the European Commission and the European Parliament, the new Regulatory Technical Standards (RTS) for Key Information Documents (KIDs) of Packaged Retail Investment and Insurance-based Products (PRIIPs) with a revised performance calculation and different methods for calculating transaction costs will come into force. At the same time, the second stage of the Sustainable Finance Disclosure Regulation (SFDR) will become effective with the required provision of pre-contractual and annual ESG documents. In order to meet all requirements and maintain a competitive edge in the dynamic regulatory environment despite increased reporting efforts, it is now time for asset managers and their service providers to holistically reconsider their data management and reporting.

A complex task for amendment Regulatory Technical Standards on KID approved by ESA

Until year end 2021 the manufacturers of structured products, OTC derivatives and UCITS funds and AIF are facing a lot of regulatory work. They are required to identify and implement amended regulatory technical standards (RTS) on the key information documents (KID) for packaged retail and insurance-based investment products (PRIIPs) approved by the European Supervisory Authorities (ESA) on 3 February 2021.

June 2020 Amended PRIIPs RTS: Performance Scenarios for Autocallables

In a previous article, we described the changes in the draft amended PRIIPs RTS applicable for structured products. The amended RTS proposal was finally approved by EIOPA’s board and now it is up to the Commission to determine the next step and whether this RTS becomes active by the end of this year.

EIOPA confirms new PRIIPs RTS. What to pay attention to now

Following the adoption of the revised RTS (Regulatory Technical Standards) for PRIIPs by ESMA and EBA, they have now also been endorsed by EIOPA. As a result, new PRIIPs KIDs with revised performance and transaction cost calculation methods are expected to arrive on January 1, 2022. acarda fully supports the calculation methods and can also prepare the new PRIIPs KIDs together with the SFDR documents that are also required. Contact us if you need more information.

Announcement of final report and draft RTS on disclosures under SFDR by European Supervisory Authorities

The Joint Committee of the three European supervisory authorities (EBA, EIOPA and ESMA) published the final report on the draft regulatory technical standards (RTS) on the content, methodology and presentation of disclosures under Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (SFDR) on February 4, 2021.

June 2020 Draft Amended PRIIPs RTS: What’s inside for Structured Products?

PRIIPs RTS solutions from LPA. Packaged Retail and Insurance-based Investment Products

PRIIPs methodology in light of COVID-19 pandemic – Does it deliver? PART 2

Comparing actual performances of several equity indices, equity ETFs and oil during the COVID-19 crisis with the PRIIP KIDs’ Stress Scenarios.

PRIIPs methodology in light of COVID-19 pandemic – Does it deliver?

PRIIPs regulation aims to help investors understand investment products behaviour and support comparison with other investment products.