Mechanisms that are considered to be to the clients' advantage are those that provide a minimum return or that limit the volatility of the underlying. For the purposes of the moratorium, only the mechanisms described below are considered mechanisms that fulfil these criteria:
- a mechanism that provides for a minimum fixed amount that is paid out whether on interim due dates or at maturity (minimum annual fixed coupon, repayment of the nominal amount at maturity);
- a mechanism that fixes the performance of the underlying, and this fixed performance constitutes the minimum basis for a payment, whether on interim due dates or at maturity;
- an observation value established on the basis of an arithmetic average performance over a specific period or on the basis of the minimum value during a specific period (initial value) or of the maximum value during a specific period (closing value). Where the closing value is established on the basis of an average, the latter may not be calculated for a period exceeding one-third of the product's lifetime (calculated between the date of issue and the date of maturity);
- a mechanism that gives the client the absolute value of the performance of the underlying.
The following do not fall within this category: a multiplier, memory coupon, 'best of' features, magnet effect or air bag.