Question ID: 972
Regulation Reference: (EU) No 2015/2450 - templates for the submission of information to the supervisory authorities
Article: 35
Status: Final
Date of submission: 03 Feb 2017
Question
Common covered bonds and Covered bonds subject to specific law are, according to EIOPA rules, assigned to CIC code category 2 - “Corporate bonds” and namely to CIC code 26 and 27 respectively. If a covered bond presents an optionality such as a callability or a make whole call provision should the bond be categorized still as a Corporate bond - CIC code category 2, or rather as a Structured note - CIC code category 5?
EIOPA answer
Please see Q&A 562.
In fact callable bonds without any structured feature besides the early redemption option should be classified as bonds, and not as structured products.