This Section presents some alternative options to amend the rules associated with Article 5 of the PRIIPs Delegated Regulation (in the corresponding Annexes) which address the methodology to identify and calculate the costs of PRIIPs and how these should be presented in the section of the KID ‘What are the costs?’. The ESAs’ work on this topic follows their statement in the February 2019 Final Report that this was a priority area for this review:
based on the feedback provided to the CP, as well as other information gathered by the ESAs following the implementation of the KID, it is intended to examine whether the methodologies to calculate, and the approach to present, costs, are achieving the intended outcomes in terms of capturing all products costs and facilitating comparability, as well as the interaction with other legislation, in particular MiFID II and IDD. The expected focus of this analysis would be the transaction cost methodology and the reduction in yield (RIY) appro
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