OFEP040200 – EPT Has Comprehension Alert

Is the instrument complex, does it require a comprehension alert under the PRIIPs regulation. If yes, the comprehension alert would read ‘You are about to purchase a product that is not simple and may be difficult to understand.’ According to Art. 25 (4)(a) of the MiFID II Directive 2014/65/EU from 15/05/14 or according to PRIIPs RTS Article 8(3)(b) of PRIIPs regulation (EU) No 1286/2014 :

1) Non-complex products are: - Shares admitted to trading on a regulated market - Bonds or other forms of securitised debt admitted to trading on a regulated market - Money-market instruments - Shares or units in UCITS - Structured deposits

2) Complex products are: - Shares in non-UCITS collective investment undertakings and shares that embed a derivative - Bonds that embed a derivative or incorporate a structure which makes it difficult for the client to understand the risk involved - Money-market instruments that embed a derivative or incorporate a structure which makes it difficult for the client to understand the risk involved - Structured UCITS as referred to in the second subparagraph of Article 36(1) of Regulation (EU) No 583/2010; - Structured deposits that incorporate a structure which makes it difficult for the client to understand the risk of return or the cost of exiting the product before term

//The correspondent PRIIP field introduced by the European Working Group with their PRIIPS Data Dictionary Template (EPT) is: EPT: 04020_Comprehension_Alert_Portfolio//

Allowed values

yes, no

Example

yes

FundsXML 4 mapping

FundsXML EPT block:

• RegulatoryReportings/…/EPTV2/Narratives/ComprehensionAlert

The field mapping table lists every field; openfunds to FundsXML explains the rules behind it.

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