Poison for toxic products
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On 5 August 2014, EBA published a Consultation Paper on the draft technical advice about the factors warranting an intervention on structured deposits. Intervention powers include prohibition or restriction on the marketing, distribution or sale of structured deposits.
In its mandate letter, the Commission stressed the fact that the technical advice would need to closely align with the criteria set by ESMA concerning its intervention powers on financial products, since they are established by an identical framework in MiFIR.
Accordingly, EBA delivered a nearly identical twin and made no more than a few cosmetic changes. Nevertheless, the intervention powers are akin to a right of life or death on financial products, structured deposits and possibly on the issuer itself in the light of the particular stigma attached to the exercise of such powers.Contact Us