ESMA · ESMA_QA_1805 Answer Published
Post-sale reporting
- Regulation
- Markets in Financial Instruments Directive II (MiFID II) Directive 2014/65/EU- Investor Protection and Intermediaries
- Topic
- Reporting to clients
- Submitted
- 2017-06-06
- Answered
- 2017-06-06
Question
When fulfilling the obligation to report on a portfolio depreciating by the 10% threshold, how should a firm value on a daily basis, as requested by the answer to question 1, financial instruments within the portfolio for which there is no secondary market or daily price reference?
Answer
[ESMA 35-43-349 MiFID II Q&As on Investor protection Ch. 8, question 5] Such financial instruments could be UCITS or AIFs for which managers do not calculate or publish a daily net asset value, unlisted securities, or shares of companies which are otherwise illiquid or subject to collective proceedings. For these types of financial instruments, investment firms should use appropriate methods to estimate what a fair value might be that should be consistent with the ones used for periodic statement provided to client under Article 60 MiFID II Delegated Regulation.
This Q&A is published by European Securities and Markets Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.
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