Art. 24 of MiFID II Art. 50(8) of the MiFID II Delegated Regulation
Which methodology should an investment firm use when calculating the ‘costs related to transactions initiated in the course of the provision of an investment service’ for its ex-ante cost disclosure?
Answer 15
Based on article 50(8) of the MiFID II Delegated Regulation, investment firms shall use actually incurred costs as a proxy when calculating expected costs and charges on an ex-ante basis. Firms should ensure themselves that the incurred costs are a representative proxy for future costs, taking into account any changes that are expected to have a material impact on the transaction related costs and charges, for instance changes in broker tariff structures or significant changes in market liquidity that will affect transaction costs on an ongoing basis.
Where data on actually incurred transaction costs are not available, the investment firm shall make reasonable estimations of these costs, provided that it id
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