28. Does the methodology of the customized index for selecting and weighting the components of the customized index have to be based on a set of pre-determined objective criteria?

In line with point 4.1 of the moratorium, the customized index used as the underlying of a derivative component is considered accessible if the components of the customized index can be observed at the time of distribution.

This requires that the initial selection and weighting of the components, as well as any later changes thereto, be made on the basis of objective criteria that are determined at the time of distribution. The discretionary power of the index manager to determine the components is not consistent with this principle.