ESMA: Draft guidelines on complex debt instruments and structured deposits

This consultation sets out draft guidelines for the assessment of bonds, other forms of securitised debt and money market instruments incorporating a structure which makes it difficult for a client to understand the risk involved and structured deposits incorporating a structure which makes it difficult for a client to understand the risk of return or the cost of exiting the product before term. It also provides draft guidelines on the concept of embedded derivative for debt instruments. Responses are required by 15 June 2015. ESMA plans to publish final guidelines in Q4 2015.