Consultation Paper on draft guidelines on complex debt
instruments and structured deposits
Article 25(10) of Directive 2014/65/EU (MiFID II) requires ESMA
to develop guidelines for the assessment of the complexity of:
(i) Bonds, other forms of securitised debt and money market
instruments incorporating a structure which makes it difficult for
the client to understand the risk involved; and
(ii) Structured deposits incorporating a structure which makes
it difficult for the client to understand the risk of return or the
cost of exiting the product before term.
ESMA has developed draft guidelines on complex debt instruments
and structured deposits. The Consultation Paper also covers the
concept of embedded derivative for debt instruments. These
guidelines are intended to enhance investor protection and are
important for the correct classification of MiFID debt instruments
(bonds, securitised debt and money market instruments) and
structured deposits as either
