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Published]","attribution":{"prepared_by":"ESMA","published_by":"ESMA","published_in":"ESMA Q&A tool","document_type":"qa_answer","legal_nature":"not_legislation","addressees":"not stated in the document","dates":{"published_on":"2017-04-04","question_submitted_on":"2017-04-04","locators":{"published_on":"ESMA Q&A Excel export ESMA_QA_1799, column 'Esma responses', date line","question_submitted_on":"ESMA Q&A Excel export ESMA_QA_1799, column 'Date of submission'"}},"adoption":null}},"provenance":{"official_url":"https://www.esma.europa.eu/publications-data/questions-answers/1799","check":{"result":"matched","checked_at":"2026-10-26","against":"the ESMA publication"},"repo_path":"spaces/mifid-ii/level-3/q-and-a/esma/esma-qa-1799-inducements.md","body_sha256":"88fa085c96fa1093709a31d3352c3e06f0116c1dfa6df79d29ce1f029192f2bc"},"units":[],"markdown":"---\ntitle: \"ESMA Q&A 1799 — Q&A — Inducements [Answer Published]\"\nshortTitle: \"ESMA Q&A 1799 — Q&A — Inducements [Answer Published]\"\nanswer_id: ESMA_QA_1799\ntopic: \"Inducements\"\nstatus: \"Answer Published\"\ntype: qa\ninstrument_type: qa\nauthority: ESMA\nbinding: false\nbinding_character: non_binding\nlegal_status: in_force\nregulation: \"MiFID II\"\nmifid_level3: true\nmica_level2: false\nlegal_basis: \"MiFID II\"\ndate: 4 April 2017\nsource_link: https://www.esma.europa.eu/publications-data/questions-answers/1799\nlifecycle: \"Answer Published\"\ntext_version: \"ESMA Q&A register, 4 April 2017\"\nsource_url: \"https://www.esma.europa.eu/publications-data/questions-answers/1799\"\ncheck_status: matched\nverified: true\nlast_checked: 2026-10-26\nchecked_against: \"the ESMA publication\"\nsource:\n  prepared_by: \"ESMA\"\n  published_by: \"ESMA\"\n  published_in: \"ESMA Q&A tool\"\n  evidence:\n    prepared_by: \"ESMA Answer\"\n    locator: \"ESMA Q&A entry ESMA_QA_1799: field 'ESMA Answer', no 'Answer provided by' line\"\ndocument_type: \"qa_answer\"\nlegal_nature: \"not_legislation\"\naddressees: \"not stated in the document\"\ndates:\n  published_on: \"2017-04-04\"\n  question_submitted_on: \"2017-04-04\"\n  locators:\n    published_on: \"ESMA Q&A Excel export ESMA_QA_1799, column 'Esma responses', date line\"\n    question_submitted_on: \"ESMA Q&A Excel export ESMA_QA_1799, column 'Date of submission'\"\nlifecycle_label: \"Answer Published\"\n---\n\n**Answer by ESMA, published in its Q&A tool · not legislation · published 4 Apr 2017 [Answer Published]**\n\n*Answer Published · ESMA Q&A register, 4 April 2017 · Checked against the ESMA publication on 26 Oct 2026 · [Official source](https://www.esma.europa.eu/publications-data/questions-answers/1799)*\n\n| | |\n|---|---|\n| **Full title** | ESMA Q&A 1799 — Q&A — Inducements \\[Answer Published\\] |\n| **Prepared by** | ESMA |\n| **Published by** | ESMA, in the ESMA Q&A tool |\n| **Reference** | ESMA_QA_1799 |\n| **Document type** | Q&A |\n| **Legal nature** | Not legislation |\n| **Addressees** | Not stated in the document |\n| **Dates** | Published 4 April 2017; question submitted 4 April 2017 |\n| **Legal basis** | MiFID II |\n| **Related instruments** | None recorded |\n| **Text on this page** | Word for word — the full text of the ESMA publication |\n\n**Inducements**\n\n### Question\n\nHow should the estimated client research charge disclosure be presented for the purposes of Article 13(1)(c)(i)?\n\n***\n\n### Answer\n\n\\[ESMA 35-43-349 MiFID II Q&As on Investor protection Ch 7, question 11\\]\n\nBefore providing an investment service, investment firms intending to use an RPA to pay for investment research should provide clients with two separate pieces of information:\n\nthe amount that the IF has budgeted for research; and\n\nthe estimated amount that can be expected to be paid out of the assets of the individual client.\n\nESMA considers that (i) should reflect the monetary amount of the budget set for a given group of portfolios, strategies or funds that are expected to benefit from such research (see Q&A1), to which their individual research charges will contribute.\n\nIn relation to (ii), it is ESMA’s view that this should be considered in light of the wider MiFID II costs and charges provisions, in particular Recital 80 and Article 50(2) of the MiFID II Delegated Regulation. Consistently with this, ESMA considers that the estimated client research charge should be presented as a single estimate figure, and disclosed in both a percentage (or basis points) format and as a cash amount.\n\nIf a firm wishes to do so in order to provide a degree of certainty to investors, it can present (ii) as a maximum figure where they guarantee to their clients they will not pay more than that predetermined amount. However, figures presented as a range are not acceptable.\n\n***\n\n**Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/1799)\n"}