“A GREAT DEAL OF DISCONTENT”

German Ministry of Finance publishes results of public consultation on MiFID II and PRIIPs

The German Ministry of Finance has published the results of a consultation of investment firms, investors and other market participants one year after the application of MiFID /MiFIR. Asked to share their experiences with the new regulation, the feedback wasn’t positive;

  • Respondents strongly criticised the breadth of the provisions of the regulation
  • The implementation costs and short times for implementation post publication of level 2 provisions was also strongly criticised
  • Insufficient coordination of MiFID II and PRIIPs rules was highlighted as a specific area of discontent

In the area of structured products the publication proposes a number of future changes;

  • Clarification that make-whole clauses in plain vanilla bonds should not bring the products within the scope of PRIIPs
  • Addition of a client classification of “semi-professional” to differentiate between inexperienced and experienced retail clients
  • A review of product governance rules in relation to IPO’s and execution only distribution
  • Clarification around extra territoriality of MiFID scope
  • Harmonisation of MiFID and PRIIPs costs and charges disclosure
  • Adaption of PRIIPs performance scenarios to avoid the practice of disclaiming prescribed results

For details of the full German Ministry of Finance statement please click here.

Mark Aldous
Head of inSPire

inSPire provides a unique range of tools to support structured products manufacturers through the issuance process, including platform management, legal and regulatory advice, product governance and issuance and lifecycle support.

Want to know more? Contact us if you would like to find out how inSPire can help support and grow your structured products business.