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---
title: "ESMA Q&A 1119 — Q&A — Information on cost and charges [Answer Published]"
shortTitle: "ESMA Q&A 1119 — Q&A — Information on cost and charges [Answer Published]"
answer_id: ESMA_QA_1119
topic: "Information to clients on costs and charges"
status: "Answer Published"
type: qa
instrument_type: qa
authority: ESMA
binding: false
binding_character: non_binding
legal_status: in_force
regulation: "MiFID II"
mifid_level3: true
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legal_basis: "MiFID II"
date: 28 May 2021
source_link: https://www.esma.europa.eu/publications-data/questions-answers/1119
lifecycle: "Answer Published"
text_version: "ESMA Q&A register, 28 May 2021"
source_url: "https://www.esma.europa.eu/publications-data/questions-answers/1119"
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---

**Answer by ESMA, published in its Q&A tool · not legislation · published 28 May 2021 [Answer Published]**

*Answer Published · ESMA Q&A register, 28 May 2021 · Checked against the ESMA publication on 26 Oct 2026 · [Official source](https://www.esma.europa.eu/publications-data/questions-answers/1119)*

| | |
|---|---|
| **Full title** | ESMA Q&A 1119 — Q&A — Information on cost and charges \[Answer Published\] |
| **Prepared by** | ESMA |
| **Published by** | ESMA, in the ESMA Q&A tool |
| **Reference** | ESMA_QA_1119 |
| **Document type** | Q&A |
| **Legal nature** | Not legislation |
| **Addressees** | Not stated in the document |
| **Dates** | Published 28 May 2021; question submitted 28 May 2021 |
| **Legal basis** | MiFID II |
| **Related instruments** | None recorded |
| **Text on this page** | Word for word — the full text of the ESMA publication |

**Information on cost and charges**

### Question

When a firm provides both investment advice and RTO/execution services to a client relating to the same transaction(s), when should the firm provide ex-ante information on costs and charges?

***

### Answer

\[ESMA35-43-439 Investor protection Cost and charges Q&A 34\]

Pursuant to Article 24(4) of MiFID II and Article 50(5) of the MiFID II Delegated Regulation, firms shall inform clients in good time before the provision of the service of all costs and associated charges relating to the investment and/or ancillary service and the financial instrument.

To enable the client to take an informed investment decision based on the recommendation provided by the firm, the client should be informed of all ex-ante costs and associated charges when the investment advice is provided.\[1\] Accordingly, where a firm provides both investment advice and RTO/execution services related to the same transaction(s), the ex-ante cost and charges information should cover the costs and charges associated with (i) the service, including the transaction costs to be incurred by the client if the recommended transaction were carried out, and (ii) the financial instrument(s).

The requirement to inform the client about all costs and associated charges in good time before the provision of investment advice applies irrespective of whether the client is subsequently provided with an RTO or execution service relating to the same transaction(s).

In ESMA’s view, ex-ante cost and charges information disclosed to the client when the investment advice is provided would not need to be provided a second time in the context of the subsequent RTO or execution service if the following conditions are met:

both services relate to the same transaction(s);

both services are provided within a reasonably short time period; and

the ex-ante cost and charges information is still accurate and complete at the time of the provision of the RTO or execution service.

\[1\] Additionally, in case the advice would take the form of on an ongoing advice (if foreseen in national legislation) charged through ongoing fees, information on the expected overall costs should also have been provided in good time before the advice in the form detailed under Q&A 9.14.

***

**Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/1119)