Knowledge Base
Provide clients with trade confirmations, including transaction reports and execution notices
What is the minimum frequency for providing an annual statement of financial instruments and funds held for a client?
Article 62 of the delegated regulation requires the professional to provide at least annually a statement of financial instruments and funds held on behalf of the client. This document allows the client to verify the completeness of their holdings.
What is the maximum deadline for providing an execution notice to a client in accordance with Delegated Regulation 2017/565?
In accordance with Article 59 of Delegated Regulation 2017/565, the service provider must send the client a confirmation as soon as possible and no later than the first business day following execution. This deadline is crucial for meeting regulatory requirements regarding post-trade transparency.
What elements must be included in an execution notice according to Article 59 of Delegated Regulation 2017/565?
Article 59 of the delegated regulation specifies that the execution notice must include several key elements: identification of the firm that transmitted the notice, the name or designation of the client, the trading day and execution time, the type of order placed, identification of the execution venue used, the precise description of the financial instrument, the indication of purchase or sale, the quantity traded and the unit price obtained, as well as the total consideration for the transaction and the details of commissions and fees charged.
What elements must a periodic statement include according to Delegated Regulation 2017/565?
The periodic statement must present several key elements: the composition and valuation of the portfolio, overall performance for the period, dividends and interest received, and the total amount of fees charged. It may also include a comparison with a relevant benchmark index.
Minimum frequency of periodic statements (without leverage)
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In accordance with Delegated Regulation 2017/565, the service provider must transmit a periodic statement on a durable medium at least once per quarter, unless the client requests monthly frequency or the contract authorizes leverage.
Categorize items by dragging them to the appropriate zones
Items to categorize:
Strict deadline (first business day)
Quarterly frequency (or monthly if requested)
Immediate information
Reporting obligations include specific requirements for different types of documents. Execution notices must be provided promptly, while periodic statements have a defined frequency. Alerts concern significant portfolio variations.
A service provider must immediately inform the client when the value of their portfolio depreciates by more than 10% compared to the last valuation communicated.
Article 62 of the delegated regulation imposes a specific alert obligation: the service provider must immediately inform the client when the portfolio value depreciates by ten percent compared to the last valuation communicated, and then at each additional ten percent multiple. This information must be provided no later than the end of the business day on which the threshold is breached.
A service provider may choose not to provide an execution notice if the order was executed abroad.
Delegated Regulation 2017/565 requires that all executed orders must be the subject of an execution notice, regardless of the execution venue. This obligation also applies to transactions carried out abroad.