The PRIIPs MOPs Challenge: Multiple Options! …But Multiple Interpretations

Since the PRIIPs Regulation¹ ("the Regulation" from here on) was published on 9 December 2014, the concept of a multi-option product (MOP)—created by the European legislator to allow PRIIPs to refer to products which offer several investment options in a wrapped structure—has been one of the most discussed topics among the manufacturers of insurance-based investment products.²

The Regulation does not provide an official definition of investment option, which would be an element essential to defining a MOP. Although the Regulatory Technical Standards have helped shed some light on the topic, each manufacturer in Europe—belonging to, and selling in, insurance markets that may differ significantly—has his or her own opinion on what an investment option, and therefore what a MOP, really is.