Knowledge Base

← Marketing of Financial Instruments, Solicitation, Distance Selling, and Client Advisory

Questions

Which article requires service providers to have procedures for comparing fees between similar products?

Article 24, paragraph 4 of MiFID 2

Article 50 of Delegated Regulation 2017/565

Article 54, paragraph 9 of the Delegated Regulation

Article L. 533-12-4 of the CMF

What is the recommended method for communicating ex-ante costs under Delegated Regulation 2017/565?

Based on reasonable estimates or actual costs if available

Only after the transaction

Only upon written request from the client

Once a year, regardless of the transaction

Under Article L. 533-12-4 of the CMF, what is the cumulative effect of costs on the return on investment in the given example?

Ten percent of the final capital

Twenty-two percent of the final capital

Five percent of the final capital

Thirty percent of the final capital

Under Article 24, paragraph 4, of MiFID 2, what is the transparency obligation regarding costs and charges related to financial instruments?

Provide only management fees

Provide costs and charges in absolute amounts and as a percentage of the invested amount

Provide only transaction costs

Provide costs and charges only upon client request

The full pass-through to the client of monetary benefits received from third parties is mandatory for independent advice and portfolio management under Article 314-18 of the AMF General Regulation.

True

False

Categorize items by dragging them to the appropriate zones

Items to categorize:

Retrocessions on management fees

Advisory commissions

Placement commissions

Discretionary management fees

Categories:

Inducements

Costs related to the investment service

Costs related to the financial instrument include only ongoing charges (Total Expense Ratio).

True

False

Conditions for retaining inducements according to the AMF

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