Module 3 · Chapter 8

Professional Investors Only: PRIIPs, the MiFID II Target Market and Selling Restrictions

A first bond is often sold to professional investors only. A high smallest holding, printed warnings and the selling banks’ promises keep savers out, and spare the issuer the rules that protect them.

≈ 8 min read 8-question test

In this chapter

  • Why a first bond is sold only to professional investors, and what a retail bond would add
  • What the warnings at the front of the Prospectus do, and why they are there
  • Where, and to whom, the Notes may not be sold

8.1Who may buy the Notes, in one paragraph

Valkenrade sells the Notes only to professional investors, such as insurers, pension funds and bond funds. Retail investors, people who invest their own savings, are kept out. The smallest holding of €100,000 does most of that work. Warnings at the front of the Prospectus, called legends, and the Managers’ promises about where they sell do the rest.

Key point

The smallest holding is €100,000. That one figure keeps savers out, and with them most of the rules in this chapter.

Also in this chapter

  1. Why Valkenrade sells only to professional investors
  2. PRIIPs: the key information document Valkenrade avoids
  3. The target market: who the Notes are for
  4. Selling restrictions: where the Managers may not sell
  5. Your job

Preview

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