26. What is the meaning of 'formula' in the definition of structured product given in the moratorium?

The moratorium defines a structured product as an investment product (investment instrument, unit issued by a UCI, insurance contract or deposit) that includes a derivative component and the repayment or yield of which, calculated by means of a formula, depends on the performance of one or more underlyings.

A formula means that one or more payments are made on the basis of one or more calculations on specific dates. This clarification makes it possible to distinguish structured products within the meaning of the moratorium from other products which, although they may contain a derivative, give the individual investor a return or yield that is completely analogous to that of a direct investment in the underlying asset. The repayment of such a product may be requested at the initiative of the investor, in principle at the then prevailing value of the underlying asset and, in the absence of a repayment formula, at any time whatsoever.