Art. 62 of the MiFID II Delegated Regulation
When 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?
Answer 4
The 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%.
If 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 c
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