ESMA_QA_1817

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1817

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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: Information to clients on costs and charges

Subject Matter: Post-sale reporting

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Question

Submission Date: 06 June 2017

Does the PRIIPs calculation methodology cover product cost components that need to be disclosed under MiFID II cost disclosure?

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ESMA Answer

Answer Date: 06-06-2017

[ESMA 35-43-349 MiFID II Q&As Investor protection Ch.9, question 6] The PRIIPs calculation methodology is designed in such a way that it will capture all costs and charges incurred by a PRIIP. These costs relate to (i) one-off costs; (ii) ongoing costs, which include transaction costs incurred when trading and (iii) incidental costs, such as performance fees. With regard to transaction costs, the PRIIPs RTS provides for a detailed calculation methodology which ensures that both explicit and implicit transaction costs are captured. This would mean that PRIIPs manufacturers can provide all relevant information on an instrument’s cost components.

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