Art. 24 of MiFID II Art. 50 of the MiFID II Delegated Regulation
How should investment firms use the product’s costs as presented in the PRIIPs KID?
Answer 7
The PRIIPs KID will contain detailed information about costs and charges of the PRIIP. ESMA is of the view that the cost components, as mentioned in the PRIIPs KID, cover all cost components, so that an investment firm can fulfil its obligation under the MiFID II regime with regard to the ex-ante costs and charges of a financial instrument.
Based on the prescribed calculation methodology of the PRIIPs RTS Annex VI, PRIIPs manufacturers have to calculate the total amount of costs on an annualised basis, for standardised investments (usually either €10,000 lump sums or €1,000 p.a. for recommended holding periods). This means that PRIIPs manufacturers have insight in (i) one-off costs; (ii) ongoing costs, which include transaction related costs and charges and (iii) incidental costs. In order to calculate the reduction in yie
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