ESA Joint Committee · priips-142 Final

Are portfolio costs for traditional endowment insurances to be taken into account in the summary cost indicator of the KID?

Regulation
PRIIPs
Answered
2017-07-04
Answer provided by
ESAs (EBA, ESMA, EIOPA)
⚠

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Question

Are portfolio costs for traditional endowment insurances to be taken into account in the summary cost indicator of the KID?

Answer

Yes, Point 52 (g) of Annex VI indicates that "Any amount implicitly charged on the amount invested such as the costs incurred for the management of the investments of the insurance company (deposit fees, costs for new investments, etc.)" shall be taken into account in the summary cost indicator. And Point 52 (h) of Annex VI specifies that "payments to third parties to meet costs necessarily incurred in connection with the acquisition or disposal of any asset owned by the insurance-based investment product (including transaction costs as referred to in Points 7 to 23 of this Annex" shall also be taken into account in the summary cost indicators.

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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