ESA Joint Committee · priips-146 Final

Should entry and exit costs under the table ‘Composition of costs’ of Annex VII be recalculated as an impact per year based on the recommended holding period instead of a RIY figure? No, the calculati

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

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Question

Should entry and exit costs under the table ‘Composition of costs’ of Annex VII be recalculated as an impact per year based on the recommended holding period instead of a RIY figure? No, the calculation of all costs in the second table ‘Composition of costs’ is specified in Points 61 and the subsequent provisions of Annex VI. For insurance-based investment products, these are RIY indicators calculated at the recommended holding period, allowing these figures to be consistent with the RIY at the recommended holding period included in the line ‘Annual cost impact’ of the first table ‘Costs over time’, as specified in Annex VII. (Answer provided by the ESAs on the application of the PRIIPs Delegated Regulation, revised on 21 December 2022) 2. Should the line ‘Incidental costs’ (performance fees and carried interests) included in the table ‘Composition of costs’ of Annex VII be included in the case of insurance-based investment products and PRIPs other than investment funds?

Answer

No, according to Point 6 of Annex VI, incidental costs and incidental costs ratios apply to investment funds, not to the other types of PRIIPs.

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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