ESA Joint Committee · priips-130 Final

Should transaction costs be calculated the same way in the ‘Composition of costs’ and the ‘Cost over time’ table? Yes, in both cases, transaction costs should be calculated according to Point 66 and t

Regulation
PRIIPs
Answered
2017-07-04
Answer provided by
ESAs (EBA, ESMA, EIOPA)
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Joint Committee Q&As are published in consolidated PDF documents without explicit question/answer delimiters. Section boundaries below are identified automatically and may occasionally be imprecise.

Question

Should transaction costs be calculated the same way in the ‘Composition of costs’ and the ‘Cost over time’ table? Yes, in both cases, transaction costs should be calculated according to Point 66 and the following provisions of Annex VI. (Answer provided by the ESAs on the application of the PRIIPs Delegated Regulation, revised on 21 December 2022) 5. When comparing the arrival price and execution price of an instrument denominated in a foreign currency, should the manager apply the same FX conversion rate to base currency to both the arrival price and the execution price?

Answer

In this case, transaction costs should be calculated in the foreign currency and then converted to the base currency using the FX rate on the day of the transaction.
View original on ESA Joint Committee (EBA, ESMA, EIOPA) ↗

This Q&A is published by ESA Joint Committee (EBA, ESMA, EIOPA) and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

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