EU MiFID II product governance and PRIIPs: recap of developments in the eurobond market in Asia
In January 2018, two new European regimes aimed at enhancing the level of investor protection came into effect. MiFID II introduced new product governance obligations on MiFID Firms when they manufacture or distribute financial instruments. For more information on the product governance regime, please refer to our note on EU MiFID II product governance rules: Practical considerations for Asia-based DCM practitioners in the eurobond market dated December 2017.
The PRIIPs Regulation introduced the requirement for a "key information document" to be made available to retail investors in EEA Member States when any packaged retail and insurance-based investment products are issued. For more information on the PRIIPs regime, please refer to our note on PRIIPs and the Debt Capital Markets: Practical Considerations for DCM Practitioners dated February 2017.
The applicability of the two regimes will depend on the specific facts and circumstances of a bond issue. Market practice continues to develop but we set out below the latest positions that market participants have accepted over the last two months. A MiFID/PRIIPs matrix is also set out in Appendix 1.
Learn more about the developments in the Eurobond market in Asia.