ESMA_QA_1837
Status: ✅ Answer Published
Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1837
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
Question
Submission Date: 28 March 2019
What terminology should firms use in costs and charges disclosure material?
ESMA Answer
Answer Date: 28-03-2019
[ESMA 35-43-349 MiFID II Q&AS on Investor protection Ch. 9 , question 25] To take an informed decision, investors should be able to compare information on costs and charges provided by different investment firms or by the same investment firm regarding different services or products. In addition, as required under Article 24(3) of MiFID II, any information must be fair, clear and not misleading. Therefore, ESMA is of the view that firms should be expected to use the same terminology as used in MiFID II, as transposed in national legislation, and in Annex II of the MiFID II Delegated Regulation. For example, third-party payments should be named as such rather than using other terms that may not describe clearly and in simple terms the nature of such payments. Alongside the MiFID II terminology, firms may add their own “commercial” terminology, but those “commercial terms” should be clearly defined with reference to the MiFID II terminology.
This document was automatically extracted from the ESMA EMIR Q&A database.