{"id":4967,"date":"2016-07-28T13:26:52","date_gmt":"2016-07-28T10:26:52","guid":{"rendered":"https:\/\/fzmayuxbif.wpdns.site\/?p=4967"},"modified":"2023-08-04T13:27:08","modified_gmt":"2023-08-04T10:27:08","slug":"esma-guidelines-on-complex-debt-instruments-and-structured-deposits","status":"publish","type":"post","link":"https:\/\/www.kyprianou.com\/he\/esma-guidelines-on-complex-debt-instruments-and-structured-deposits\/","title":{"rendered":"ESMA guidelines on complex debt instruments and structured deposits"},"content":{"rendered":"<div class=\"ed_body\">\n<p>The European Securities and Markets Authority (ESMA) has issued guidelines, applicable from 3 January 2017, regarding the criteria for the assessment of (i) debt instruments with a structure that makes it difficult for the client to understand the risk involved and (ii) structured deposits with a structure that makes it difficult for the client to understand the risk of return or the cost of exiting the product before term.<\/p>\n<p>These guidelines also clarify the concept of \u201cembedded derivatives\u201d, thus providing an overall framework for the application of Article 25(4)(a) of MiFID II in relation to debt instruments.<\/p>\n<p>The purpose of these guidelines is to strengthen investor protection and to promote greater convergence in the classification of &quot;complex&quot; or &quot;non-complex&quot; financial instruments or structured deposits for the purposes of the appropriateness test\/execution-only business in accordance with Article 25(3) and 25(4) of MiFID II.<\/p>\n<p>Cyprus Securities and Exchange Commission (CySEC) has recently confirmed that it will implement the said guidelines in Cyprus\u2019 national regulations.<\/p>\n<p>You can read the guidelines by\u00a0<a href=\"https:\/\/www.esma.europa.eu\/sites\/default\/files\/library\/2015-1787_-_guidelines_on_complex_debt_instruments_and_structured_deposits.pdf\" target=\"_blank\" rel=\"noopener\">following this link<\/a>.<\/p>\n<p>The material contained in this update is for information purposes only. In case you require any further information regarding this matter please feel free to contact us.<\/p>\n<\/div>\n<div class=\"share-blo\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The European Securities and Markets Authority (ESMA) has issued guidelines, applicable from 3 January 2017, regarding the criteria for the assessment of (i) debt instruments with a structure that makes it difficult for the client to understand the risk involved and (ii) structured deposits with a structure that makes it difficult for the client to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","_seopress_analysis_target_kw":"","site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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