ESMA_QA_1805

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1805

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Regulatory Context

Regulation : MIF2

Level 1 Regulation: Markets in Financial Instruments Directive II (MiFID II) Directive 2014/65/EU- Investor Protection and Intermediaries

Level 2 Regulation: No information available

Level 3 Regulation: No information available

Topic: Reporting to clients

Subject Matter: Post-sale reporting

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Question

Submission Date: 06 June 2017

When fulfilling the obligation to report on a portfolio depreciating by the 10% threshold, how should a firm value on a daily basis, as requested by the answer to question 1, financial instruments within the portfolio for which there is no secondary market or daily price reference?

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ESMA Answer

Answer Date: 06-06-2017

[ESMA 35-43-349 MiFID II Q&As on Investor protection Ch. 8, question 5] Such financial instruments could be UCITS or AIFs for which managers do not calculate or publish a daily net asset value, unlisted securities, or shares of companies which are otherwise illiquid or subject to collective proceedings. For these types of financial instruments, investment firms should use appropriate methods to estimate what a fair value might be that should be consistent with the ones used for periodic statement provided to client under Article 60 MiFID II Delegated Regulation.

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This document was automatically extracted from the ESMA EMIR Q&A database.