ESMA_QA_2645
Status: ✅ Answer Published
Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/2645
Regulatory Context
Regulation : PRIIPS
Level 1 Regulation: Packaged Retail and Insurance-based Investment Products Regulation (PRIIPS) Regulation (EU) No 1286/2014
Level 2 Regulation: PRIIPS - Regulation 2017/653 on the presentation, content, review and revision of key information documents and the conditions for fulfilling the requirement to provide such documents
Level 3 Regulation: No information available
Topic: Disclosures
Subject Matter: Intent to Present Future Performance in Percentage Terms in Robo-Advisory App – Compliance with MiFID II (incl. Article 44) and PRIIPs
Question
Submission Date: 17 September 2025
We are currently exploring the possibility of presenting future performance in percentage terms within our robo-advisory application. The app provides automated investment recommendations based on client profiling and risk tolerance, and may in the future include visual projections of potential returns.
These projections would be expressed as percentages, clearly labeled as hypothetical, and accompanied by appropriate disclaimers and risk warnings. The format would follow the structure and methodology of performance scenarios as outlined in Annex IV of the PRIIPs Regulation.
In this context, we would like to clarify:
Is it permissible to present future performance in percentage terms if the format aligns with the performance scenarios described in PRIIPs Annex IV? Would such a presentation be compliant with Article 44 of MiFID II, particularly in digital interfaces?
ESMA Answer
Answer Date: 03-12-2025
Dear Madam/Sir, Thank you for contacting ESMA. The selection of questions to be developed into policy Q&As is done according to a number of criteria, which include the following:
Type of stakeholder: Questions received from investors’ and regulated firms’ associations, will be prioritised over questions from individual firms. Geographical origin: EU individuals and entities have priority over non-EU stakeholders. Level of public attention: Topics receiving a higher number of questions will have a higher priority. Relevance of the issue: Questions addressing matters with high market impact, important legal risks and significant cross-border effects will have a higher priority.
We would like to inform you that your suggested question does not appear to be amongst the ones considered of higher priority, at least at this stage. This means that, in view of the number of questions received by ESMA, we are unable to provide you with any further feedback to your question, for the moment. We thank you for your input and invite you to monitor our website where we will continue to publish further Q&As, and other forms of guidance, with the purpose of ensuring the consistent and effective day-to-day application of Union law within ESMA’s remit. Kind regards, ESMA
This document was automatically extracted from the ESMA EMIR Q&A database.