{"release":{"id":"a4f2a0495fe55b47323883f82977a9b34ab66171ec9623e39925d3a7045b6c81","published":"2026-11-01T16:41:30Z","pinned":false},"limits":{"coverage":{"history":"current_only","held_since":"2016-12-16","gaps":[],"covered":["ESMA Q&A 1803 — Q&A — Post-sale reporting [Answer Published] L3"],"not_covered":["national guidance","court decisions"]},"freshness":{"release_id":"a4f2a0495fe55b47323883f82977a9b34ab66171ec9623e39925d3a7045b6c81","release_published":"2026-11-01T16:41:30Z","checked_at":"2026-10-26","checked_against":"the ESMA publication"},"truncation":null,"failures":[],"incomplete":[]},"page":{"path":"/mifid-ii/level-3/q-and-a/esma/esma-qa-1803-post-sale-reporting","url":"https://www.headlesslaw.com/mifid-ii/level-3/q-and-a/esma/esma-qa-1803-post-sale-reporting","title":"ESMA Q&A 1803 — Q&A — Post-sale reporting [Answer Published]","family":"l3","work_id":"spaces/mifid-ii/level-3/q-and-a/esma/esma-qa-1803-post-sale-reporting","status":"answer published","force_status":null,"date_state":"current","requested_date":null,"as_of":"2026-11-02","applies_from":null,"application":null,"version_label":"ESMA Q&A register, 16 December 2016","check":{"against":"the ESMA publication","on":"2026-10-26"},"check_result":"matched","official_url":"https://www.esma.europa.eu/publications-data/questions-answers/1803","valid_from":"0001-01-01","valid_until":null,"revision":1,"content_id":"ea8c90d8b42f514a","change_date":null,"nearest_versions":["2016-12-16"],"first_text_date":null,"correction_applies":false,"versions":["2016-12-16"],"version_url":"https://www.headlesslaw.com/mifid-ii/level-3/q-and-a/esma/esma-qa-1803-post-sale-reporting/versions/2016-12-16","revision_url":"https://www.headlesslaw.com/mifid-ii/level-3/q-and-a/esma/esma-qa-1803-post-sale-reporting/versions/2016-12-16/rev/ea8c90d8b42f514a","versions_url":"https://www.headlesslaw.com/mifid-ii/level-3/q-and-a/esma/esma-qa-1803-post-sale-reporting/versions","relations_url":"https://www.headlesslaw.com/mifid-ii/level-3/q-and-a/esma/esma-qa-1803-post-sale-reporting/relations","source_line":"Answer by ESMA, published in its Q&A tool · not legislation · published 16 Dec 2016 [Answer 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":"2016-12-16","question_submitted_on":"2016-12-16","locators":{"published_on":"ESMA Q&A Excel export ESMA_QA_1803, column 'Esma responses', date line","question_submitted_on":"ESMA Q&A Excel export ESMA_QA_1803, column 'Date of submission'"}},"adoption":null}},"provenance":{"official_url":"https://www.esma.europa.eu/publications-data/questions-answers/1803","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-1803-post-sale-reporting.md","body_sha256":"36a615e201b722e707ac82d7009e106ffa2fbdb7c4f1b48994becd9f79f15b19"},"units":[],"markdown":"---\ntitle: \"ESMA Q&A 1803 — Q&A — Post-sale reporting [Answer Published]\"\nshortTitle: \"ESMA Q&A 1803 — Q&A — Post-sale reporting [Answer Published]\"\nanswer_id: ESMA_QA_1803\ntopic: \"Reporting to clients\"\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: 16 December 2016\nsource_link: https://www.esma.europa.eu/publications-data/questions-answers/1803\nlifecycle: \"Answer Published\"\ntext_version: \"ESMA Q&A register, 16 December 2016\"\nsource_url: \"https://www.esma.europa.eu/publications-data/questions-answers/1803\"\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_1803: 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: \"2016-12-16\"\n  question_submitted_on: \"2016-12-16\"\n  locators:\n    published_on: \"ESMA Q&A Excel export ESMA_QA_1803, column 'Esma responses', date line\"\n    question_submitted_on: \"ESMA Q&A Excel export ESMA_QA_1803, column 'Date of submission'\"\nlifecycle_label: \"Answer Published\"\n---\n\n**Answer by ESMA, published in its Q&A tool · not legislation · published 16 Dec 2016 [Answer Published]**\n\n*Answer Published · ESMA Q&A register, 16 December 2016 · Checked against the ESMA publication on 26 Oct 2026 · [Official source](https://www.esma.europa.eu/publications-data/questions-answers/1803)*\n\n| | |\n|---|---|\n| **Full title** | ESMA Q&A 1803 — Q&A — Post-sale reporting \\[Answer Published\\] |\n| **Prepared by** | ESMA |\n| **Published by** | ESMA, in the ESMA Q&A tool |\n| **Reference** | ESMA_QA_1803 |\n| **Document type** | Q&A |\n| **Legal nature** | Not legislation |\n| **Addressees** | Not stated in the document |\n| **Dates** | Published 16 December 2016; question submitted 16 December 2016 |\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**Post-sale reporting**\n\n### Question\n\nHow does a firm fulfil the obligation to report if the values of a client’s leveraged financial instruments or contingent liability transactions depreciate by a 10% threshold on a particular business day, if a firm’s automated systems do not provide valuations throughout the day for all the instruments held?\n\n***\n\n### Answer\n\n\\[ESMA 35-43-349 MiFID II Q&As on Investor protection Ch. 8, question 3\\]\n\nIn line with the response to Q&A 1 (on portfolio reporting), in order to identify whether there has been a depreciation by 10% or more, a firm could set a fixed daily valuation point for its leveraged financial instruments and inform clients in the same time frame set out in Q&A 1.\n\nArticle 62(2) of the MiFID II Delegated Regulation requires firms to report to clients that hold positions in leveraged financial instruments or contingent liability transactions, where the initial value (original cost) of each instrument depreciates by 10% and thereafter at multiples of 10%. It applies on an instrument-by-instrument basis, unless otherwise agreed, and shall take place no later than the end of the day in which the threshold is exceeded. MiFID II Delegated Regulation, Recital 96 states that a ‘contingent liability transaction’ should involve any actual or potential liability for the client that exceeds the cost of acquiring the instrument. There is no similar explanation of what a ‘leveraged financial instrument’ is. However, given Recital 96 and the objective of Article 62(2), firms should conclude that if a financial instrument has the potential of magnifying an investor’s exposure to an underlying risk then this will result in the instrument being a leveraged financial instrument.\n\n***\n\n**Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/1803)\n"}