Irish regulator updates guidance on decrement, back-testing

The Central Bank of Ireland (CBI) has released new supervisory guidance to investment firms to clarify aspects of the relevant Mifid 2 investor protection requirements and the expectations set out by the regulator in the SRP Letter on Mifid 2 structured retail products last year. These relate to how the warnings on use of a decrement index should appear, and the presentation of back-testing. The use of decrement indices – ‘where a fixed dividend is periodically deducted from the un