Article 5
‘What are the costs?’ section
1.
PRIIP manufacturers shall apply the following in the section entitled ‘What are the costs?’ of the key information document:
(a)
the methodology for the calculation of costs set out in Annex VI;
(b)
the ‘Costs over time’ and ‘Composition of costs’ tables to information on costs, as set out in Annex VII in accordance with the relevant technical guidance therein.
2.
In the ‘Costs over time’ table in the section entitled ‘What are the costs?’ of the key information document, PRIIP manufacturers shall specify the summary cost indicator of the total aggregated costs of the PRIIP as a single number in monetary and percentage terms for the different time periods set out in Annex VI.
A prominent warning shall be added, where applicable, regarding the additional costs that may be charged by persons advising on, or selling, the PRIIP.
3.
In the ‘Composition of costs’ table in the section titled ‘What are the costs?’ of the key information document, PRIIP manufacturers shall specify summary indicators of the following types of costs:
(a)
any one-off costs, such as entry and exit costs;
(b)
any recurring costs, separating portfolio transaction costs and other recurring costs;
(c)
any incidental costs, such as performance fees or carried interest.
4.
PRIIP manufacturers shall describe each of the different costs included in the ‘Composition of costs’ table in the section titled ‘What are the costs?’ of the key information document, in accordance with Annex VII, and shall specify where and how those costs may differ from the actual costs the retail investor may incur, and where and how such costs may depend on whether the retail investor does or does not exercise certain options.