ESMA_QA_1832

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1832

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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: Information on cost and charges

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Question

Submission Date: 03 October 2017

How should the cost disclosure be made regarding the respective figures that are to be disclosed in aggregated and itemized form (see Question 13/[Q&A 1825]) in case the respective costs or charges are zero?

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ESMA Answer

Answer Date: 03-10-2017

[ESMA 35-43-349 MiFID II Q&As on Investor protection Ch. 9, question 20] The firm should explicitly show a “zero” for the individual figure that is to be disclosed. As one of the purposes of the cost disclosure regime is comparability of products and services, it is important that clients receive explicit figures for every item to be disclosed, even if it is zero. The firm should therefore not leave out a cost component which value is zero as this might lead to misinterpretations.

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