ESMA updates MiFID II/ MIFIR Investor Protection Q&A


The European Securities and Markets Authority (ESMA) has added 14 new Q&As to its Questions and Answers (Q&A) document on the implementation of investor protection topics under the Market in Financial Instruments Directive and Regulation (MiFID II/ MiFIR). The new Q&As cover the topics of ‘information on costs and charges’, ‘post-sale reporting’, and ‘appropriateness’.

ESMA added new questions and answers about applying cost and charges from the PRIIPs regulation and the transaction cost. (see page 63 Question 10):

“An investment firm should however disclose all costs, including all costs of the financial instruments. Therefore, where for instance the information on transaction costs, which would be expected to be calculated using the methodology referred to in the PRIIPs RTS, is not publicly available the investment firm would be expected to liaise with the UCITS manager (and, where applicable, the manager of a non-UCITS fund) to obtain it. 
During this transition period, transaction costs might be assessed by using the method provided for in paragraphs 21 to 23 of Annex VI of the PRIIPs RTS”