Structured Products and Other

Reflecting the hybrid nature of structured products, ISDA often works jointly with securities-focused trade associations on issues that transcend wholesale and retail markets. The forum for this work is the Joint Associations Committee on Retail Structured Products (JAC), chaired by Tim Hailes of JP Morgan. 

Documents related to Islamic Finance derivatives agreements can be found here:

DateTitle / Document / DescriptionDownload
October 18, 2016
JAC letter to the European Commission on PRIIPs
On October 17, the Joint Associations Committee on Retail Structured Products (JAC) called on the European Commission to delay the application of the PRIIPs Regulation by one year to January 3, 2018 in order to allow proper time for the Level 2 text to be amended, agreed and consulted on, and to align the timing with MIFID II/R. The JAC letter was supported by ISDA, ICMA, the FIA and the GFXD arm of GFMA. The letter focuses on the technical reasons why this is the only viable course of action to safeguard the interests of retail investors and ensure proper market functioning.
JAC letter to the EU Commission on PRIIPs further to the rejection of th....pdf
September 26, 2016
JAC response to FCA consultation paper on PRIIPS
On September 19, 2016, the Joint Associations Committee on Retail Structured Products responded to the Financial Conduct Authority’s Consultation Paper CP16/18: Changes to disclosure rules in the FCA Handbook to reflect the direct application of the PRIIPs regulation. This JAC response was supported by ISDA, ICMA and GFMA and made several extensive points considered fundamental to the application of the PRIIPs regulation: highlighting the industry’s need for clarity on the scope of the PRIIPs regulation; and the need for tailoring certain of the requirements to accurately reflect the working of certain derivatives considered as PRIIPs and structured products so as not to mislead investors.
ISDA_JAC response to CP 16_18 - 19 9 16.pdf
June 22, 2016
Joint letter to the Bank of Italy regarding information reporting
On June 22, 2016, the Joint Associations Committee on Retail Structured Products (JAC), along with the International Capital Market Association (ICMA) and ISDA (with the support of the Associazione Italiana Intermediari Mobiliari (ASSOSIM)), wrote to the Bank of Italy with observations and questions relating to the Bank of Italy Circular entitled Information reporting as contemplated in Article 129 of the TUB relating to the issue and offer of financial instruments in Italy. The letter points to critical doubts concerning the interpretation of the Circular, and lists practical questions raised by several banks ahead of the new reporting requirements applicable as of October 1, 2016. Please also see an earlier letter dated July 14, 2014 further down this page.
Articolo 129 Position Paper 4 - Italian version (Finale co _logo) execut....pdf Article 129 Position Paper 4- English version (Final with logo) executed....pdf
May 17, 2016
PRIIPs letters from the JAC to the European bodies and response from the European Commission
The JAC held its Spring meeting on April 27, 2016 and discussed its February 17 letter to the European bodies and the response it received from the European Commission in April. Those letters focused on the key issues of scope, territoriality, secondary trading issues and grandfathering, and the possible gold-plating of the PRIIPs regulation. The JAC meeting also brought together various pieces of legislation on product governance and encouraged members to consider the ways in which it could work together to set industry alignment. The letters and materials discussed in the JAC Spring meeting can be found here.
February 17, 2016
JAC letters to European Authorities seeking clarity on PRIIPs Regulation
On February 17, 2016, the Joint Associations Committee on Retail Structured Products (JAC) sent two letters above to the European Authorities. The first letter sought to highlight the four very significant issues relating to the scope of the PRIIPs regulation which remained unclear: scope, territoriality, secondary trading issues and grandfathering and gold plating. The second letter sets out the detailed aspects of the regulation and RTS which the JAC felt required clarification prior to implementation.
JAC Letter to EC ESMA 17 February final.pdf JAC Letter to ESAs 17 February.pdf
February 2, 2016
JAC response to the ESMA consultation paper on PRIIPs key information documents
On November 10, the European Securities and Markets Authority (ESMA) published a consultation paper on packaged retail and insurance-based investment products (PRIIPs) key information documents (KIDs). The paper sought to establish regulatory technical standards on the presentation and content of the KID, including methodologies for the calculation and presentation of risks, rewards and costs within the document. ISDA has responded to this paper in partnership with ICMA and our members.
June 1, 2015
JAC responds to FCA thematic review on product development and governance of structured products
On March 5, 2015, the UK Financial Conduct Authority (FCA) published a thematic review on the product development and governance of structured products. Firms need to ensure they design products that have a reasonable prospect of delivering economic value to end clients and promote their features in a clear and balanced way. The thematic review highlights further areas that firms need to work on. Given the firms are replying in detail to the FCA, the Joint Associations Committee’s (JAC) letter focuses on high-level issues.
JAC Response to FCA Structured Products Thematic.pdf
May 14, 2015
JAC responds to EC consultation on the Prospectus Directive
On February 18, 2014, the European Commission published a consultation paper relating to the review of the Prospectus Directive. The paper sought to identify the needs of prospectus users with regards to scope, form, content, comparability, the approval process, liability and issuers. Feedback was also requested on aspects that unduly hinder access to capital markets, liability and sanctions. The Joint Associations Committee on Retail Structured Products response focuses on the questions that are of particular interest to the structured securities industry.
PDIII - JAC response form.pdf PDIII - JAC response letter.pdf
February 17, 2015
JAC response to the Discussion Paper on Key Information Documents for Packaged Retail and Insurance-based Investment Product (PRIIPs)
In November 2014 the three European Supervisory Authorities (ESAs) issued a discussion paper that set out their early thinking regarding the drafting of the Level 2 Regulatory Technical Standards (RTS) to support the EU PRIIPs Regulation (Regulation (EU) No 1286/2014). Past experience suggests that this will be an important opportunity to influence the outcome of this process. The Joint Association Committee has prepared a detailed response to the discussion paper. The JAC response covers areas of significant importance to the industry including issues such as the approaches to measuring and disclosing risk, costs and product performance in the KIID and the rules relating to review, revision and republication of the KIID. A further Discussion Paper on the more complex methodological aspects of the RTS is expected later this Spring followed by further Consultation Papers on the text of the draft RTS once this has been prepared by the ESAs.
PRIIPS Response - Feb 2015.pdf
December 22, 2014
JAC response to ESMA CP on prospectus-related issues
On December 18, the Joint Associations Committee on Retail Structured Products (JAC) responded to a European Securities and Markets Authority (ESMA) consultation paper (CP) on draft technical standards for prospectus-related issues under the Omnibus II Directive. This CP addresses the procedures for the approval of prospectuses, incorporation of information by reference, publication of prospectuses and dissemination of advertisements relating to offers to the public and admissions to trading.
Omnibus II Draft RTS on prospectus related issues - Responses to CP.pdf