ESMA Q&A 1817 — Q&A — Post-sale reporting [Answer Published]

Post-sale reporting

Question

Does the PRIIPs calculation methodology cover product cost components that need to be disclosed under MiFID II cost disclosure?

---

Answer

[ESMA 35-43-349 MiFID II Q&As Investor protection Ch.9, question 6]

The PRIIPs calculation methodology is designed in such a way that it will capture all costs and charges incurred by a PRIIP. These costs relate to (i) one-off costs; (ii) ongoing costs, which include transaction costs incurred when trading and (iii) incidental costs, such as performance fees. With regard to transaction costs, the PRIIPs RTS provides for a detailed calculation methodology which ensures that both explicit and implicit transaction costs are captured. This would mean that PRIIPs manufacturers can provide all relevant information on an instrument’s cost components.

---

Source: ESMA original document