Q&A · ESMA
Product governance
Answered
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Only bonds whose sole embedded derivative is a make-whole clause, or instruments distributed exclusively to eligible counterparties, are exempt from MiFID II product governance under Article 16a; plain vanilla bonds and bonds with other embedded derivatives (with or without a make-whole clause) remain in scope, as ESMA's table shows.
Details
| Reference | ESMA_QA_1126 |
|---|---|
| Issuer | ESMA |
| Published | 19 Nov 2021 |
| Answered | 19 Nov 2021 |
| Submitted | 19 Nov 2021 |
| ESMA topics | Product governance |
Provisions it relates to
- Article 16a MiFID II · Exemptions from product governance requirementsInferred · 95%
- MiFID II (whole act)Explicit reference