What changed, Commission Delegated Regulation (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65/EU

+ ## CHAPTER I — SCOPE AND DEFINITIONS
− ## CHAPTER I / **SCOPE AND DEFINITIONS**
+ (4) ‘securities financing transaction’ means security financing transaction as defined in Article 3(11) of Regulation (EU) 2015/2365 of the European Parliament and of the Council (2);
− (4) ‘securities financing transaction’ means security financing transaction as defined in Article 3(11) of Regulation (EU) 2015/2365 of the European Parliament and of the Council (2).
+ 
+ (6) ‘commodity’ means any goods of a fungible nature that are capable of being delivered, including metals and their ores and alloys, agricultural products, and energy such as electricity;
+ 
+ (7) ‘sustainability preferences’ means a client’s or potential client’s choice as to whether and, if so, to what extent, one or more of the following financial instruments shall be integrated into his or her investment: (a) a financial instrument for which the client or potential client determines t…
+ (8) ‘sustainability factors’ means sustainability factors as defined in Article 2, point (24), of Regulation (EU) 2019/2088;
+ 
+ (9) ‘sustainability risks’ means sustainability risks as defined in Article 2, point (22), of Regulation (EU) 2019/2088.
− (6) ‘commodity’ means any goods of a fungible nature that are capable of being delivered, including metals and their ores and alloys, agricultural products, and energy such as electricity.
− 
− Provision of investment service in an incidental manner
− (Article 2(1) of Directive 2014/65/EU)
− 
− 
− Wholesale energy products that must be physically settled
− (Article 4(1)(2) of Directive 2014/65/EU)
− 
+ **2.** Operational netting shall be understood as any nomination of quantities of power and gas to be fed into a gridwork upon being so required by the rules or requests of a Transmission System Operator as defined in Article 2(4) of Directive 2009/72/EC of the European Parliament and of the Council…
− **2.** Operational netting shall be understood as any nomination of quantities of power and gas to be fed into a gridwork upon being so required by the rules or requests of a Transmission System Operator as defined in Article 2(4) of Directive 2009/72/EC of the European Parliament and of the Council…
− 
− Energy derivative contracts relating to oil and coal and wholesale energy products
− 
− (Article 4(1)(2) of Directive 2014/65/EU)
− 
− Other derivative financial instruments
− 
− (Article 4(1)(2) of Directive 2014/65/EU)
+ **3.** For the purposes of Section C(10) of Annex I to Directive 2004/39/EC of the European Parliament and of the Council (6), a derivative contract relating to an underlying referred to in that Section or in Article 8 of this Regulation shall be considered to have the characteristics of other deriv…
− **3.** For the purposes of Section C(10) of Annex I to Directive 2004/39/EC of the European Parliament and of the Council (4), a derivative contract relating to an underlying referred to in that Section or in Article 8 of this Regulation shall be considered to have the characteristics of other deriv…
− 
− Derivatives under Section C(10) of Annex I to Directive 2014/65/EU
− 
− (Article 4(1)(2) of Directive 2014/65/EU)
+ (e) a geological, environmental or other physical variable, except if the contract is relating to any units recognised for compliance with the requirements of Directive 2003/87/EC of the European Parliament and of the Council (7);
− (e) a geological, environmental or other physical variable, except if the contract is relating to any units recognised for compliance with the requirements of Directive 2003/87/EC of the European Parliament and of the Council (5);
− 
− Investment advice
− 
− (Article 4(1)(4) of Directive 2014/65/EU)
+ **1.** For the purposes of Section C(4) of Annex I to Directive 2014/65/EU, other derivative contracts relating to a currency shall not be a financial instrument where the contract is one of the following:(a) a spot contract within the meaning of paragraph 2 of this Article,(b) a means of payment th…
− **1.** For the purposes of Section C(4) of Annex I to Directive 2014/65/EU, other derivative contracts relating to a currency shall not be a financial instrument where the contract is one of the following:(a) a spot contract within the meaning of paragraph 2 of this Article,(b) a means of payment th…
− 
− Money-market instruments
− 
− (Article 4(1)(17) of Directive 2014/65/EU)
− 
− Systematic internalisers for shares, depositary receipts, ETFs, certificates and other similar financial instruments
− (Article 4(1)(20) of Directive 2014/65/EU)
− 
− 
− Systematic internalisers for bonds
− (Article 4(1)(20) of Directive 2014/65/EU)
− 
− 
− Systematic internalisers for structured finance products
− 
− (Article 4(1)(20) of Directive 2014/65/EU)
− Systematic internalisers for derivatives
− 
− (Article 4(1)(20) of Directive 2014/65/EU)
− 
− 
− Systematic internalisers for emission allowances
− (Article 4(1)(20) of Directive 2014/65/EU)
− 
− 
− Relevant assessment periods
− 
− (Article 4(1)(20) of Directive 2014/65/EU)
− Algorithmic trading
− 
− (Article 4(1)(39) of Directive 2014/65/EU)
− 
− 
− High frequency algorithmic trading technique
− (Article 4(1)(40) of Directive 2014/65/EU)
− 
− 
− Direct electronic access
− 
− (Article 4(1)(41) of Directive 2014/65/EU)
+ ## CHAPTER II — ORGANISATIONAL REQUIREMENTS / SECTION 1 — Organisation
− ## *SECTION 1* / ***Organisation***
+ **1.** Investment firms shall comply with the following organisational requirements:(a) establish, implement and maintain decision-making procedures and an organisational structure which clearly and in documented manner specifies reporting lines and allocates functions and responsibilities;(b) ensur…
− General organisational requirements
+ Investment firms shall take into account sustainability risks when complying with the requirements set out in this paragraph.
− (Article 16(2) to (10) of Directive 2014/65/EU)
+ When complying with the requirements set out in this paragraph, investment firms shall take into account the nature, scale and complexity of the business of the firm, and the nature and range of investment services and activities undertaken in the course of that business.
− **1.** Investment firms shall comply with the following organisational requirements:(a) establish, implement and maintain decision-making procedures and an organisational structure which clearly and in documented manner specifies reporting lines and allocates functions and responsibilities;(b) ensur…
− When complying with the requirements set out in the this paragraph, investment firms shall take into account the nature, scale and complexity of the business of the firm, and the nature and range of investment services and activities undertaken in the course of that business.
− 
− 
− Compliance
− 
− (Article 16(2) of Directive 2014/65/EU)
+ **1.** Investment firms shall take the following actions relating to risk management:▼M4(a) establish, implement and maintain adequate risk management policies and procedures which identify the risks relating to the firm’s activities, processes and systems, and, where appropriate, set the level of r…
− Risk management
− 
− (Article 16(5) of Directive 2014/65/EU)
− **1.** Investment firms shall take the following actions relating to risk management:(a) establish, implement and maintain adequate risk management policies and procedures which identify the risks relating to the firm's activities, processes and systems, and where appropriate, set the level of risk …
− 
− 
− Internal audit
− 
− (Article 16(5) of Directive 2014/65/EU)
− Responsibility of senior management
− 
− (Article 16(2) of Directive 2014/65/EU)
− 
− 
− Complaints handling
− (Article 16(2) of Directive 2014/65/EU)
− 
+ **5.** Investment firms shall communicate the firm's position on the complaint to clients or potential clients and inform the clients or potential clients about their options, including that they may be able to refer the complaint to an alternative dispute resolution entity, as defined in Article 4(…
− **5.** Investment firms shall communicate the firm's position on the complaint to clients or potential clients and inform the clients or potential clients about their options, including that they may be able to refer the complaint to an alternative dispute resolution entity, as defined in Article 4(…
− 
− Remuneration policies and practices
− (Articles 16, 23 and 24 of Directive 2014/65/EU)
− 
− 
− Scope of personal transactions
− 
− (Article 16(2) of Directive 2014/65/EU)
− Personal transactions
− 
− (Article 16(2) of Directive 2014/65/EU)
− 
+ ## CHAPTER II — ORGANISATIONAL REQUIREMENTS / SECTION 2 — Outsourcing
− ## *SECTION 2* / ***Outsourcing***
− Scope of critical and important operational functions
− 
− (Article 16(2) and first subparagraph of Article 16(5) of Directive 2014/65/EU)
− 
− 
− Outsourcing critical or important operational functions
− (Article 16(2) and of Article 16(5) first subparagraph of Directive 2014/65/EU)
− 
− 
− Service providers located in third countries
− 
− (Article 16(2) and first subparagraph of Article 16(5) of Directive 2014/65/EU)
+ ## CHAPTER II — ORGANISATIONAL REQUIREMENTS / SECTION 3 — Conflicts of interest
− ## *SECTION 3* / ***Conflicts of interest***
+ For the purposes of identifying the types of conflict of interest that arise in the course of providing investment and ancillary services or a combination thereof and whose existence may damage the interests of a client, including his or her sustainability preferences, investment firms shall take in…
− Conflicts of interest potentially detrimental to a client
− 
− (Articles 16(3) and 23 of Directive 2014/65/EU)
− For the purposes of identifying the types of conflict of interest that arise in the course of providing investment and ancillary services or a combination thereof and whose existence may damage the interests of a client, investment firms shall take into account, by way of minimum criteria, whether t…
− 
+ (b) the firm or that person has an interest in the outcome of a service provided to the client or of a transaction carried out on behalf of the client, which is distinct from the client’s interest in that outcome;
− (b) the firm or that person has an interest in the outcome of a service provided to the client or of a transaction carried out on behalf of the client, which is distinct from the client's interest in that outcome;
− 
− Conflicts of interest policy
− (Articles 16(3) and 23 of Directive 2014/65/EU)
− 
− 
− Record of services or activities giving rise to detrimental conflict of interest
− 
− (Article 16(6) of Directive 2014/65/EU)
− Investment research and marketing communications
− 
− (Article 24(3) of Directive 2014/65/EU)
− 
− 
− Additional organisational requirements in relation to investment research or marketing communications
− (Article 16(3) of Directive 2014/65/EU)
− 
− 
− Additional general requirements in relation to underwriting or placing
− 
− (Articles 16(3), 23 and 24 of Directive 2014/65/EU)
− Additional requirements in relation to pricing of offerings in relation to issuance of financial instruments
− 
− (Articles 16(3), 23 and 24 of Directive 2014/65/EU)
− 
− 
− Additional requirements in relation to placing
− (Articles 16(3), 23 and 24 of Directive 2014/65/EU)
− 
− 
− Additional requirements in relation to advice, distribution and self-placement
− 
− (Articles 16(3), 23 and 24 of Directive 2014/65/EU)
+ **4.** Investment firms which offer financial instruments issued that are by themselves or other group entities to their clients and that are included in the calculation of prudential requirements specified in Regulation (EU) No 575/2013 of the European Parliament and of the Council (10), Directive …
− **4.** Investment firms which offer financial instruments issued that are by themselves or other group entities to their clients and that are included in the calculation of prudential requirements specified in Regulation (EU) No 575/2013 of the European Parliament and of the Council (8), Directive 2…
− 
− Additional requirements in relation to lending or provision of credit in the context of underwriting or placement
− 
− (Articles 16(3), 23 and 24 of Directive 2014/65/EU)
− 
− Record keeping in relation to underwriting or placing
− (Articles 16(3), 23 and 24 of Directive 2014/65/EU)
− 
+ ## CHAPTER III — OPERATING CONDITIONS FOR INVESTMENT FIRMS / SECTION 1 — Information to clients and potential clients
− ## *SECTION 1* / ***Information to clients and potential clients***
− Fair, clear and not misleading information requirements
− 
− (Article 24(3) of Directive 2014/65/EU)
− 
− 
− Information concerning client categorisation
− (Article 24(4) of Directive 2014/65/EU)
− 
− 
− General requirements for information to clients
− 
− (Article 24(4) of Directive 2014/65/EU)
− Information about the investment firm and its services for clients and potential clients
− 
− (Article 24(4) of Directive 2014/65/EU)
− 
− 
− Information about financial instruments
− (Article 24(4) of Directive 2014/65/EU)
− 
− 
− Information concerning safeguarding of client financial instruments or client funds
− 
− (Article 24(4) of Directive 2014/65/EU)
− Information on costs and associated charges
− 
− (Article 24(4) of Directive 2014/65/EU)
− 
− 
− Information provided in accordance with Directive 2009/65/EU and Regulation (EU) No 1286/2014
− (Article 24(4) of Directive 2014/65/EU)
− 
+ ## CHAPTER III — OPERATING CONDITIONS FOR INVESTMENT FIRMS / SECTION 2 — Investment advice
− ## *SECTION 2* / ***Investment advice***
− 
− Information about investment advice
− (Article 24(4) of Directive 2014/65/EU)
− 
+ **3.** Investment firms shall provide a description of:(a) the types of financial instruments considered;(b) the range of financial instruments and providers, analysed per each type of instrument according to the scope of the service;(c) where relevant, the sustainability factors taken into consider…
− **3.** Investment firms shall provide a description of the types of financial instruments considered, the range of financial instruments and providers analysed per each type of instrument according to the scope of the service, and, when providing independent advice, how the service provided satisfie…
− 
− Investment advice on an independent basis
− (Article 24(4) and 24(7) of Directive 2014/65/EU)
− 
+ ## CHAPTER III — OPERATING CONDITIONS FOR INVESTMENT FIRMS / SECTION 3 — Assessment of suitability and appropriateness
− ## *SECTION 3* / ***Assessment of suitability and appropriateness***
− 
− Assessment of suitability and suitability reports
− (Article 25(2) of Directive 2014/65/EU)
− 
+ **2.** Investment firms shall determine the extent of the information to be collected from clients in light of all the features of the investment advice or portfolio management services to be provided to those clients. Investment firms shall obtain from clients or potential clients such information …
− **2.** Investment firms shall determine the extent of the information to be collected from clients in light of all the features of the investment advice or portfolio management services to be provided to those clients. Investment firms shall obtain from clients or potential clients such information …
+ **5.** The information about the investment objectives of the client or potential client shall include, where relevant, information about the length of time for which the client wishes to hold the investment, his or her preferences regarding risk taking, his or her risk tolerance, the purpose of the…
− **5.** The information regarding the investment objectives of the client or potential client shall include, where relevant, information on the length of time for which the client wishes to hold the investment, his preferences regarding risk taking, his risk profile, and the purposes of the investmen…
+ **9.** Investment firms shall have in place, and be able to demonstrate that they have in place, adequate policies and procedures to ensure that they understand the nature features, including costs and risks of investment services and financial instruments selected for their clients, including any s…
− **9.** Investment firms shall have, and be able to demonstrate, adequate policies and procedures in place to ensure that they understand the nature, features, including costs and risks of investment services and financial instruments selected for their clients and that they assess, while taking into…
+ 
+ An investment firm shall not recommend financial instruments or decide to trade such instruments as meeting a client’s or potential client’s sustainability preferences when those financial instruments do not do meet those preferences. The investment firm shall explain to the client or potential clie…
+ 
+ Where no financial instrument meets the sustainability preferences of the client or potential client, and the client decides to adapt his or her sustainability preferences, the investment firm shall keep records of the decision of the client, including the reasons for that decision.
+ **12.** When providing investment advice, investment firms shall provide a report to the retail client that includes an outline of the advice given and that explains how the recommendation provided is suitable for the retail client, including how the recommendation meets the client’s investment obje…
− **12.** When providing investment advice, investment firms shall provide a report to the retail client that includes an outline of the advice given and how the recommendation provided is suitable for the retail client, including how it meets the client's objectives and personal circumstances with re…
+ The requirements to meet the sustainability preferences of clients or potential clients, where relevant, shall not alter the conditions laid down in the first subparagraph.
+ 
− 
− Provisions common to the assessment of suitability or appropriateness
− (Article 25(2) and 25(3) of Directive 2014/65/EU)
− 
− 
− Assessment of appropriateness and related record-keeping obligations
− 
− (Article 25(3) and 25(5) of Directive 2014/65/EU)
− Provision of services in non-complex instruments
− 
− (Article 25(4) of Directive 2014/65/EU)
− 
− 
− Retail and Professional Client agreements
− (Article 24(1) and 25(5) of Directive 2014/65/EU)
− 
+ ## CHAPTER III — OPERATING CONDITIONS FOR INVESTMENT FIRMS / SECTION 4 — Reporting to clients
− ## *SECTION 4* / ***Reporting to clients***
− 
− Reporting obligations in respect of execution of orders other than for portfolio management
− (Article 25(6) of Directive 2014/65/EU)
− 
− 
− Reporting obligations in respect of portfolio management
− 
− (Article 25(6) of Directive 2014/65/EU)
− Reporting obligations in respect of eligible counterparties
− 
− (Article 24(4) and Article 25(6) of Directive 2014/65/EU)
− 
− 
− Additional reporting obligations for portfolio management or contingent liability transactions
− (Article 25(6) of Directive 2014/65/EU)
− 
− 
− Statements of client financial instruments or client funds
− 
− (Article 25(6) of Directive 2014/65/EU)
+ The first subparagraph shall not apply to a credit institution authorised under Directive 2000/12/EC of the European Parliament and of the Council (14) in respect of deposits within the meaning of that Directive held by that institution.
− The first subparagraph shall not apply to a credit institution authorised under Directive 2000/12/EC of the European Parliament and of the Council (12) in respect of deposits within the meaning of that Directive held by that institution.
+ ## CHAPTER III — OPERATING CONDITIONS FOR INVESTMENT FIRMS / SECTION 5 — Best execution
− ## *SECTION 5* / ***Best execution***
− 
− Best execution criteria
− (Articles 27(1) and 24(1) of Directive 2014/65/EU)
− 
− 
− Duty of investment firms carrying out portfolio management and reception and transmission of orders to act in the best interests of the client
− 
− (Article 24(1) and 24(4) of Directive 2014/65/EU)
− Execution policy
− 
− (Article 27(5) and (7) of Directive 2014/65/EU)
− 
+ ## CHAPTER III — OPERATING CONDITIONS FOR INVESTMENT FIRMS / SECTION 6 — Client order handling
− ## *SECTION 6* / ***Client order handling***
− General principles
− 
− (Articles 28(1) and 24(1) of Directive 2014/65/EU)
− 
− 
− Aggregation and allocation of orders
− (Articles 28(1) and 24(1) of Directive 2014/65/EU)
− 
− 
− Aggregation and allocation of transactions for own account
− 
− (Articles 28(1) and 24(1) of Directive 2014/65/EU)
− Prompt fair and expeditious execution of client orders and publication of unexecuted client limit orders for shares traded on a trading venue
− 
− (Article 28 of Directive 2014/65/EU)
− 
+ ## CHAPTER III — OPERATING CONDITIONS FOR INVESTMENT FIRMS / SECTION 7 — Eligible counterparties
− ## *SECTION 7* / ***Eligible counterparties***
− Eligible counterparties
− 
− (Article 30 of Directive 2014/65/EU)
− 
+ ## CHAPTER III — OPERATING CONDITIONS FOR INVESTMENT FIRMS / SECTION 8 — Record-keeping
− ## *SECTION 8* / ***Record-keeping***
− Retention of records
− 
− (Article 16(6) of Directive 2014/65/EU)
− 
− 
− Record keeping of rights and obligations of the investment firm and the client
− (Article 25(5) of Directive 2014/65/EU)
− 
− 
− Record keeping of client orders and decision to deal
− 
− (Article 16(6) of Directive 2014/65/EU)
− Record keeping of transactions and order processing
− 
− (Article 16(6) of Directive 2014/65/EU)
− 
− 
− Recording of telephone conversations or electronic communications
− (Article 16(7) of Directive 2014/65/EU)
− 
+ ## CHAPTER III — OPERATING CONDITIONS FOR INVESTMENT FIRMS / SECTION 9 — SME growth markets
− ## *SECTION 9* / ***SME growth markets***
− 
− Qualification as an SME
− (Article 4(1)(13) of Directive 2014/65/EU)
− 
− 
− Registration as an SME growth market
− 
− (Article 33(3) of Directive 2014/65/EU)
− Deregistration as an SME growth market
− 
− (Article 33(3) of Directive 2014/65/EU)
− 
+ ## CHAPTER IV — OPERATING OBLIGATIONS FOR TRADING VENUES
− ## CHAPTER IV / **OPERATING OBLIGATIONS FOR TRADING VENUES**
− Circumstances constituting significant damage to investors' interests and the orderly functioning of the market
− 
− (Articles 32(1), 32(2), 52(1) and 52(2) of Directive 2014/65/EU)
− 
− 
− Circumstances where significant infringements of the rules of a trading venue or disorderly trading conditions or system disruptions in relation to a financial instrument may be assumed
− 
− (Articles 31(2) and 54(2) of Directive 2014/65/EU)
− 
− Circumstances where a conduct indicating behaviour that is prohibited under Regulation (EU) No 596/2014 may be assumed
− 
− (Articles 31(2) and 54(2) of Directive 2014/65/EU)
+ ## CHAPTER V — POSITION REPORTING IN COMMODITY DERIVATIVES
− ## CHAPTER V / **POSITION REPORTING IN COMMODITY DERIVATIVES**
− 
− Position reporting
− 
− (Article 58(1) of Directive 2014/65/EU)
+ ## CHAPTER VI — DATA PROVISION OBLIGATIONS FOR DATA REPORTING SERVICE PROVIDERS
− ## CHAPTER VI / **DATA PROVISION OBLIGATIONS FOR DATA REPORTING SERVICE PROVIDERS**
− 
− Obligation to provide market data on a reasonable commercial basis
− 
− (Article 64(1) and 65(1) of Directive 2014/65/EU)
− Provision of market data on the basis of cost
− 
− (Article 64(1) and 65(1) of Directive 2014/65/EU)
− 
− 
− Obligation to provide market data on a non-discriminatory basis
− (Article 64(1) and 65(1) of Directive 2014/65/EU)
− 
− 
− Per user fees
− 
− (Article 64(1) and 65(1) of Directive 2014/65/EU)
− Unbundling and disaggregating market data
− 
− (Article 64(1) and 65(1) of Directive 2014/65/EU)
− 
+ **2.** Prices for market data shall be charged on the basis of the level of market data disaggregation provided for in Article 12(1) of Regulation (EU) No 600/2014 as further specified in Articles of Commission Delegated Regulation (EU) 2017/572 (15).
− **2.** Prices for market data shall be charged on the basis of the level of market data disaggregation provided for in Article 12(1) of Regulation (EU) No 600/2014 as further specified in Articles of Commission Delegated Regulation (EU) 2017/572 (13).
− Transparency obligation
− 
− (Article 64(1) and 65(1) of Directive 2014/65/EU)
− 
+ ## CHAPTER VII — COMPETENT AUTHORITIES AND FINAL PROVISIONS
− ## CHAPTER VII / **COMPETENT AUTHORITIES AND FINAL PROVISIONS**
− Determination of the substantial importance of the operations of a trading venue in a host Member State
− 
− (Article 79(2) of Directive 2014/65/EU)
− 
+ ## CHAPTER VIII — FINAL PROVISIONS
− ## CHAPTER VIII / **FINAL PROVISIONS**
− 
− This Regulation shall be binding in its entirety and directly applicable in all Member States.
− 
− ### ANNEX I
− 
− 
− 
− ### Record-keeping
− 
− **Minimum list of records to be kept by investment firms depending upon the nature of their*****activities***
− 
− | **Nature of obligation** | **Type of record** | **Summary of content** | **Legislative reference** |
− | --- | --- | --- | --- |
− | **Client assessment** |  |  |  |
− |  | Information to clients | Content as provided for under Article 24(4) of Directive 2014/65/EU and Articles 44 to 51 of this Regulation | Article 24(4) of Directive 2014/65/EUArticles 44 to 51 of this Regulation |
− |  | Client agreements | Records as provided for under Article 25(5) of Directive 2014/65/EU | Article 25(5) Directive 2014/65/EUArticle 58 of this Regulation |
− |  | Assessment of suitability and appropriateness | Content as provided for under paragraphs 2 and 3 of Article 25 of Directive 2014/65/EU and Articles 54, 55 and 60 of this Regulation | Article 25(2) and (3) of Directive 2014/65/EUArticles 54, 55 and 56 of this Regulation |
− | **Order handling** |  |  |  |
− |  | Client order-handling – Aggregated transactions | Records as provided for under Articles 67 to 70 of this Regulation | Articles 24(1) and 28(1) of Directive 2014/65/EUArticles 67 to 70 of this Regulation |
− |  | Aggregation and allocation of trans-actions for own account | Records as provided for under Article 69 of this Regulation | Articles 24(1) and 28(1) of Directive 2014/65/EUArticle 69 of this Regulation |
− | **Client Orders and transactions** |  |  |  |
− |  | Record keeping of client orders or decision to deal | Records as provided for under Article 74 of this Regulation | Article 16(6) of Directive 2014/65/EUArticle 74 of this Regulation |
− |  | Record keeping of transactions and order processing | Records as provided for under Article 75 of this Regulation | Article 16(6) of Directive 2014/65/EUArticle 75 of this Regulation |
− | **Reporting to clients** |  |  |  |
− |  | Obligation in respect of services provided to clients | Contents as provided for under Articles 59 to 63 of this Regulation | Paragraphs 1 and 6 of Article 24 and paragraphs 1 and 6 of Article 25 of Directive 2014/65/EUArticles 59 to 63 of this Regulation |
− | **Safeguarding of client assets** |  |  |  |
− |  | Client financial instruments held by an investment firm | Records as provided for under Article 16(8) of Directive 2014/65/EU and under Article 2 of Commission Delegated Directive (EU) 2017/593 | Article 16(8) of Directive 2014/65/EUArticle 2 of Delegated Directive (EU) 2017/593 |
− |  | Client funds held by an investment firm | Records as provided for under Article 16(9) of Directive 2014/65/EU and under Article 2 of Delegated Directive (EU) 2017/593 | Article 16(9) of Directive 2014/65/EUArticle 2 of Delegated Directive (EU) 2017/593 |
− |  | Use of client financial instruments | Records provided for under Article 5 of Delegated Directive (EU) 2017/593 | Paragraphs 8, 9 and 10 of Article 16 of Directive 2014/65/EUArticle 5 of Delegated Directive (EU) 2017/593 |
− | **Communication with clients** |  |  |  |
− |  | Information about Costs and associated charges | Contents as provided for under Article 50 of this Regulation | Article 24(4), point (c) of Directive 2014/65/EUArticle 50 of this Regulation |
− |  | Information about the investment firm and its services, financial instruments and safe-guarding of client assets | Content as provided for under Articles 47, 48 and 49 of this Regulation | Article 24(4) of Directive 2014/65/EUArticles 47, 48 and 49 of this Regulation |
− |  | Information to clients | Records of communication | Article 24(3) of Directive 2014/65/EUArticle 46 of this Regulation |
− |  | Marketing communications (except in oral form) | Each marketing communication issued by the investment firm (except in oral form) as provided under Articles 44 and 46 of this Regulation | Article 24(3) of Directive 2014/65/EUArticles 44 and 46 of this Regulation |
− |  | Investment advice to retail clients | (i) The fact, time and date that investment advice was rendered and (ii) the financial instrument that was recommended (iii) the suitability report provided to the client | Article 25(6) of Directive 2014/65/EUArticle 54 of this Regulation |
− |  | Investment research | Each item of investment research issued by the investment firm in a durable medium | Article 24(3) of Directive 2014/65/EUArticles 36 and 37 of this Regulation |
− | **Organisational requirements** |  |  |  |
− |  | The firm’s business and internal organisation | Records as provided for under Article 21(1), point (f) of this Regulation | Paragraphs 2 to 10 of Article 16 of Directive 2014/65/EUArticle 21(1), point (f) of this Regulation |
− |  | Compliance reports | Each compliance report to management body | Article 16(2) of Directive 2014/65/EUArticle 22(2), point (c) and Article 25(2) of this Regulation |
− |  | Conflict of Interest record | Records as provided for under Article 35 of this Regulation | Article 16(3) of Directive 2014/65/EUArticle 35 of this Regulation |
− |  | Inducements | The information disclosed to clients under Article 24(9) of Directive 2014/65/EU | Article 24(9) of Directive 2014/65/EUArticle 11, 12 and 13 of Delegated Directive (EU) 2017/593 |
− |  | Risk management reports | Each risk management report to senior management | Article 16(5) of Directive 2014/65/EUArticle 23(1), point (b) and Article 25(2) of this Regulation |
− |  | Internal audit reports | Each internal audit report to senior management | Article 16(5) of Directive 2014/65/EUArticle 24 and Article 25(2) of this Regulation |
− |  | Complaints-handling records | Each complaint and the complaint handling measures taken to address the complaint | Article 16(2) of Directive 2014/65/EUArticle 26 of this Regulation |
− |  | Records of personal transactions | Records as provided for under Article 29(5), point (c) of this Regulation | Article 16(2) of Directive 2014/65/EUArticle 29(5), point (c) of this Regulation |
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− ### ANNEX II
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− **Costs and charges**
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− **Identified costs that should form part of the costs to be disclosed to the clients** (14)
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− *Table 1* — All costs and associated charges charged for the investment service(s) and/or ancillary services provided to the client that should form part of the amount to be disclosed
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− | Cost items to be disclosed | Examples: |  |
− | --- | --- | --- |
− | **One-off charges related to the provision of an investment service** | All costs and charges paid to the investment firm at the beginning or at the end of the provided investment service(s). | Deposit fees, termination fees and switching costs (1). |
− | **Ongoing charges related to the provision of an investment service** | All ongoing costs and charges paid to investment firms for their services provided to the client. | Management fees, advisory fees, custodian fees. |
− | **All costs related to transactions initiated in the course of the provision of an investment service** | All costs and charges that are related to transactions performed by the investment firm or other parties. | Broker commissions (2), entry- and exit-charges paid to the fund manager, platform f…
− | **Any charges that are related to ancillary services** | Any costs and charges that are related to ancillary services that are not included in the costs mentioned above. | Research costs.Custody costs. |
− | **Incidental costs** |  | Performance fees |
− | (1)Switching costs should be understood as costs (if any) that are incurred by investors by switching from one investment firm to another investment firm.(2)Broker commissions should be understood as costs that are charged by investment firms for the execution of orders. |  |  |
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− *Table 2* — All costs and associated charges related to the financial instrument that should form part of the amount to be disclosed
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− | Cost items to be disclosed | Examples: |  |
− | --- | --- | --- |
− | **One-off charges** | All costs and charges (included in the price or in addition to the price of the financial instrument) paid to product suppliers at the beginning or at the end of the investment in the financial instrument. | Front-loaded management fee, structuring fee (1), distribution fee. …
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