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published 28 Mar 2019 [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":"2019-03-28","question_submitted_on":"2019-03-28","locators":{"published_on":"ESMA Q&A Excel export ESMA_QA_1836, column 'Esma responses', date line","question_submitted_on":"ESMA Q&A Excel export ESMA_QA_1836, column 'Date of submission'"}},"adoption":null}},"provenance":{"official_url":"https://www.esma.europa.eu/publications-data/questions-answers/1836","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-1836-information-on-cost-and-charges.md","body_sha256":"1a1e8749c6447c5109cd067e7edda6d0bd114ede6a6426c92bdc87f80ca68ad6"},"units":[],"markdown":"---\ntitle: \"ESMA Q&A 1836 — Q&A — Information on cost and charges [Answer Published]\"\nshortTitle: \"ESMA Q&A 1836 — Q&A — Information on cost and charges [Answer Published]\"\nanswer_id: ESMA_QA_1836\ntopic: \"Information to clients on costs and charges\"\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: 28 March 2019\nsource_link: https://www.esma.europa.eu/publications-data/questions-answers/1836\nlifecycle: \"Answer Published\"\ntext_version: \"ESMA Q&A register, 28 March 2019\"\nsource_url: \"https://www.esma.europa.eu/publications-data/questions-answers/1836\"\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_1836: 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: \"2019-03-28\"\n  question_submitted_on: \"2019-03-28\"\n  locators:\n    published_on: \"ESMA Q&A Excel export ESMA_QA_1836, column 'Esma responses', date line\"\n    question_submitted_on: \"ESMA Q&A Excel export ESMA_QA_1836, column 'Date of submission'\"\nlifecycle_label: \"Answer Published\"\n---\n\n**Answer by ESMA, published in its Q&A tool · not legislation · published 28 Mar 2019 [Answer Published]**\n\n*Answer Published · ESMA Q&A register, 28 March 2019 · Checked against the ESMA publication on 26 Oct 2026 · [Official source](https://www.esma.europa.eu/publications-data/questions-answers/1836)*\n\n| | |\n|---|---|\n| **Full title** | ESMA Q&A 1836 — Q&A — Information on cost and charges \\[Answer Published\\] |\n| **Prepared by** | ESMA |\n| **Published by** | ESMA, in the ESMA Q&A tool |\n| **Reference** | ESMA_QA_1836 |\n| **Document type** | Q&A |\n| **Legal nature** | Not legislation |\n| **Addressees** | Not stated in the document |\n| **Dates** | Published 28 March 2019; question submitted 28 March 2019 |\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**Information on cost and charges**\n\n### Question\n\nHow should the ex-ante costs and charges disclosure requirements be applied to the service of portfolio management?\n\n***\n\n### Answer\n\n\\[ESMA 35-43-349 MiFID II Q&As on Investor protection Ch. 9, question 24\\]\n\nIn accordance with Article 50(5) and Recital 75 of the MiFID II Delegated Regulation, an investment firm must inform the client, in good time before the provision of the investment service of portfolio management, about the costs and charges relating to (i) the investment and ancillary service(s) to be provided (service costs) and to (ii) the financial instrument(s) in which the client’s portfolio could be invested in accordance with the mandate given by the client (product costs).\n\nDue to the nature of the service of portfolio management (management on a discretionary client-by-client basis), no cost disclosure is due in relation to each investment decision taken by the firm. However, ex-ante information about costs and charges should be provided before the firm starts providing the service. The quality and completeness of the ex-ante information provided before the provision of the portfolio management service is thus critical.\n\nESMA is therefore of the opinion that ex-ante information relating to service and product costs where portfolio management is provided should be based on:\n\nthe value of the assets (cash and/or financial instruments) under discretionary management (as disclosed by the client or prospective client before the firm starts exercising its discretionary mandate); and\n\nthe anticipated (model or bespoke) portfolio corresponding to the client’s investment profile, objective(s) and, in case of a bespoke mandate, strategy that will be adopted for the management of the client’s portfolio, in accordance with the mandate given by the client.\n\nBoth service(s) costs and financial instrument(s) costs should be aggregated, as per Q&A 13. Additionally, firms may, as a good practice, proactively provide greater detailed ex-ante information about costs and charges. For example, firms could provide ex-ante information about costs and charges relating to financial instruments by category of financial instruments with the same costs structure.\n\n***\n\n**Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/1836)\n"}