MiFID II

With MiFID II now implemented, below you will find help and support on how this affects you and your clients.

Key areas you should familiarise yourself with:

  • Pre- and post-sales client disclosure, including 'annual costs and charges summaries'. You can find an example in the relevant section below, or click here. You will also being able to view individual client's summaries within 'Client Documents'.
  • Nationalities and a national identifier required for the FundsNetwork Pension and reportable assets in other types of account
  • Transaction reporting and the new additional client details required, including Legal Entity Identifiers (LEI), for corporate and trust clients
  • Target Market Review.

Transaction costs

FundsNetwork only distributes funds – the responsibility for calculating a fund’s portfolio transaction costs lies with the fund management group and managers can use many different calculation methods.

Fidelity’s 'Full PRIIPS' transaction cost methodology

  • Includes both explicit and implicit transaction charges
  • Implicit costs include slippage
  • For fund of funds products, costs include a ‘look through’ to underlying fund portfolio transaction costs (Fidelity estimates this cost where no figure is available for an underlying fund)
  • MIFID is less prescriptive about how to calculate PTCs but the regulations do set out that the highly prescriptive PRIIPS approach (also introduced in 2018) is suitable; so many managers have opted for that.
MiFID II services for advisers with discretionary permissions
Transaction reporting and Legal Entity Identifiers (LEIs) for reportable assets
What is required for trading in the FundsNetwork Pension?
Disclosure – pre- and post-sales client disclosure, including 'annual costs and charges summaries'
Target market (product/fund governance)