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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":"2017-06-06","question_submitted_on":"2017-06-06","locators":{"published_on":"ESMA Q&A Excel export ESMA_QA_1804, column 'Esma responses', date line","question_submitted_on":"ESMA Q&A Excel export ESMA_QA_1804, column 'Date of submission'"}},"adoption":null}},"provenance":{"official_url":"https://www.esma.europa.eu/publications-data/questions-answers/1804","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-1804-post-sale-reporting.md","body_sha256":"bb243faabb01115089183985eb713c9769292e96bc197bb8f90f05be827248fa"},"units":[],"markdown":"---\ntitle: \"ESMA Q&A 1804 — Q&A — Post-sale reporting [Answer Published]\"\nshortTitle: \"ESMA Q&A 1804 — Q&A — Post-sale reporting [Answer Published]\"\nanswer_id: ESMA_QA_1804\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: 6 June 2017\nsource_link: https://www.esma.europa.eu/publications-data/questions-answers/1804\nlifecycle: \"Answer Published\"\ntext_version: \"ESMA Q&A register, 6 June 2017\"\nsource_url: \"https://www.esma.europa.eu/publications-data/questions-answers/1804\"\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_1804: 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: \"2017-06-06\"\n  question_submitted_on: \"2017-06-06\"\n  locators:\n    published_on: \"ESMA Q&A Excel export ESMA_QA_1804, column 'Esma responses', date line\"\n    question_submitted_on: \"ESMA Q&A Excel export ESMA_QA_1804, column 'Date of submission'\"\nlifecycle_label: \"Answer Published\"\n---\n\n**Answer by ESMA, published in its Q&A tool · not legislation · published 6 Jun 2017 [Answer Published]**\n\n*Answer Published · ESMA Q&A register, 6 June 2017 · Checked against the ESMA publication on 26 Oct 2026 · [Official source](https://www.esma.europa.eu/publications-data/questions-answers/1804)*\n\n| | |\n|---|---|\n| **Full title** | ESMA Q&A 1804 — 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_1804 |\n| **Document type** | Q&A |\n| **Legal nature** | Not legislation |\n| **Addressees** | Not stated in the document |\n| **Dates** | Published 6 June 2017; question submitted 6 June 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**Post-sale reporting**\n\n### Question\n\nWhen fulfilling the obligation to report on a portfolio depreciating by the 10% threshold, how should the firm take account of a client making additions to the portfolio after the reporting period has started?\n\n***\n\n### Answer\n\n\\[ESMA 35-43-349 MiFID II Q&s on Investor protection Ch. 8, question 4\\]\n\nThe obligation is to report if the overall value of a portfolio, as evaluated at the beginning of each reporting period (usually every three months), depreciates by 10% and thereafter at multiples of 10%.\n\nIf cash is added to a portfolio after the reporting period has started, the current value of the portfolio increases by the amount of client money transferred in, but the invested value at the beginning of the reporting period is unaffected. To identify if there are depreciations to report, the current portfolio value measured should exclude the value of cash added after the reporting period has started, so only the original cash or invested value is taken into account. Until a periodic statement accounting for this added cash is provided, when calculating the value of a portfolio to assess whether the 10% thresholds are exceeded, a firm should discount the value of any added cash from the current overall value of the portfolio.\n\nIf clients add cash that is invested or add investments to a portfolio (increasing the assets that are subject to devaluation), to see whether the 10% thresholds are exceeded, the value of any added investments should be added to the original starting value of the portfolio. Then, if the current value of the portfolio depreciates by more than 10% of the revised starting portfolio valuation, the obligation to report applies. Firms should avoid any behaviour that might incentivise clients to add investments/cash that is invested for the purpose of avoiding the reporting on a portfolio depreciation.\n\n***\n\n**Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/1804)\n"}