Question ID: 487
Regulation Reference: (EU) No 2015/2450 - templates for the submission of information to the supervisory authorities
Article: 35
Template: S.06.02
Status: Final
Date of submission: 19 Jan 2016
Question
We have a question on classification of Investment funds in S.06.02 “List of Assets”. In column C0290 “CIC” it says “Identify the ISO 3166-1-alpha-2 country code where the asset is listed in. An asset is considered as being listed if it is negotiated on a regulated market or on a multilateral trading facility, as defined by Directive 2004/39/EC”.
However if the asset (e.g. Investment fund) is not listed on a stock exchange, the first two letters should be “XL”, despite that prices may be quoted on a daily basis by the fund management company. We would like to know if “Investment funds” can qualify as listed according to the Directive 2004/39/EC? If all Investment funds will have “XL” as first two letter, we will miss out on a lot of information on where the assets are listed or have its risk base?
EIOPA answer
Directive 2014/65/EU (that partly recast Directive 2004/39/EC) defines: “‘multilateral trading facility’ or ‘MTF’ means a multilateral system, operated by an investment firm or a market operator, which brings together multiple third-party buying and selling interests in financial instruments – in the system and in accordance with non-discretionary rules – in a way that results in a contract in accordance with Title II of this Directive’”
Insurance and reinsurance undertakings are responsible for assessing their investments and attribute the CIC. If the asset in question (collective investment undertaking or other) is exchanged in a market complying with the definition above then they should not be classified as “XL”. NAV prices published by entities that do not comply with the definition of MTF should not lead to consider that the asset, in this case the collective investment undertaking, is considered as listed.