ESMA_QA_1814
Status: ✅ Answer Published
Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1814
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: Information to clients on costs and charges
Subject Matter: Post-sale reporting
Question
Submission Date: 16 December 2016
To what extent does the cumulative effect of the costs on the return need to be graphically displayed?
ESMA Answer
Answer Date: 16-12-2016
[ESMA 35-43-349 MiFID II Q&As on Investor protection Ch 9, question 2] Based on Article 24(4) MiFID II and Article 50(10) of the MiFID II Delegated Regulation, firms have to provide clients with an illustration to show the cumulative effect of the costs on the return. The format of the illustration is not prescribed. This means that the illustration required can take multiple forms, among others a graph, a table or a narrative. However, it is required that (i) the illustration shows the effect of the overall costs and charges on the return of the investment, (ii) the illustration shows any anticipated spikes or fluctuations in the costs (where applicable), (iii) and that the illustration is accompanied by a description of the illustration.
This document was automatically extracted from the ESMA EMIR Q&A database.