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---
title: "ESMA Q&A 1837 — Q&A — Information on cost and charges [Answer Published]"
shortTitle: "ESMA Q&A 1837 — Q&A — Information on cost and charges [Answer Published]"
answer_id: ESMA_QA_1837
topic: "Information to clients on costs and charges"
status: "Answer Published"
type: qa
instrument_type: qa
authority: ESMA
binding: false
binding_character: non_binding
legal_status: in_force
regulation: "MiFID II"
mifid_level3: true
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legal_basis: "MiFID II"
date: 28 March 2019
source_link: https://www.esma.europa.eu/publications-data/questions-answers/1837
lifecycle: "Answer Published"
text_version: "ESMA Q&A register, 28 March 2019"
source_url: "https://www.esma.europa.eu/publications-data/questions-answers/1837"
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---

**Answer by ESMA, published in its Q&A tool · not legislation · published 28 Mar 2019 [Answer Published]**

*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/1837)*

| | |
|---|---|
| **Full title** | ESMA Q&A 1837 — Q&A — Information on cost and charges \[Answer Published\] |
| **Prepared by** | ESMA |
| **Published by** | ESMA, in the ESMA Q&A tool |
| **Reference** | ESMA_QA_1837 |
| **Document type** | Q&A |
| **Legal nature** | Not legislation |
| **Addressees** | Not stated in the document |
| **Dates** | Published 28 March 2019; question submitted 28 March 2019 |
| **Legal basis** | MiFID II |
| **Related instruments** | None recorded |
| **Text on this page** | Word for word — the full text of the ESMA publication |

**Information on cost and charges**

### Question

What terminology should firms use in costs and charges disclosure material?

***

### Answer

\[ESMA 35-43-349 MiFID II Q&AS on Investor protection Ch. 9 , question 25\]

To take an informed decision, investors should be able to compare information on costs and charges provided by different investment firms or by the same investment firm regarding different services or products. In addition, as required under Article 24(3) of MiFID II, any information must be fair, clear and not misleading. Therefore, ESMA is of the view that firms should be expected to use the same terminology as used in MiFID II, as transposed in national legislation, and in Annex II of the MiFID II Delegated Regulation. For example, third-party payments should be named as such rather than using other terms that may not describe clearly and in simple terms the nature of such payments. Alongside the MiFID II terminology, firms may add their own “commercial” terminology, but those “commercial terms” should be clearly defined with reference to the MiFID II terminology.

***

**Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/1837)