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Version date: 29 May 2019 - onwards

Question 29 Use of assumed investment amounts for ex-ante information in relation to investment services and/or products with non-linear charging structures [Last update: 29 May 2019]

Art. 24 of MiFID II Recital 78 and Art. 50(2) of the MiFID II Delegated Regulation

For ex-ante costs and charges disclosures in relation to investment services and/or products with non-linear charging structures, are firms allowed to use an assumed investment amount?

Answer 29

Yes. Whether investment services and/or products have linear or non-linear charging structures (i.e. where the percentage of fees payable for service costs and/or product costs varies depending on the amount invested), firms may base their ex-ante costs and charges disclosures on an assumed amount, as per Recital 78 of the MiFID II Delegated Regulation.

However, any assumed investment amount chosen by the firm should reflect where, in the charging structure, the specific transaction giving rise to the disclosure is assumed to stand. This means that the firm should make an assumption regarding the scale of the amount the client wants to invest. Such assumption may be based, inter alia, on preliminary discussions

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