Transaction costs: our solutions for PRIIPs and MiFID reporting

Since PRIIPs regulation came into force, the financial industry has raised the issue of negative transaction costs when applying the initial methodology published in the 2017 RTS, which can be misleading to retail investors.

In that context, it comes as no surprise that the revised regulatory technical standards published in 2021 bring about methodological changes for the transaction costs disclosure.

One of the main changes is that transaction costs can no longer be negative – anti-dilution benefits can be applied only if the result is not lower than the explicit costs, and a minimum of explicit costs should be disclosed.
Also, the new RTS allows for the turnover methodology (“new PRIIPs methodology”) to be used until the end of 2024 for UCITS and AIFs publishing a UCITS KIID, however the collection of arrival prices is already required in order to compute the 3-year averages.

It is important to be aware that the transaction costs changes are one out of many brought about by the new RTS. Continue to our article here to read more about the upcoming challenges as well as specific ways you can prepare for a successful migration.

Our team can help you deal with all these changes as part of our comprehensive solution. Do not hesitate to contact us for more information on how we can assist you in this area.