CHAPTER I

CONTENT AND PRESENTATION OF THE KEY INFORMATION DOCUMENT

‘What are the costs?’ section
Article 5
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.
3
In the ‘Composition of costs’ table in the section entitled ‘What are the costs?’ of the key information document, PRIIP manufacturers shall specify the following:
a
any one-off costs, as entry and exit costs, presented in percentage terms;
b
any recurring costs, as portfolio transaction costs per year, and other recurring costs per year, presented in percentage terms;
c
any incidental costs, such as performance fees or carried interest, presented in percentage terms.
4
PRIIP manufacturers shall insert a description of each of the different costs included in the ‘Composition of costs’ table in the section entitled ‘What are the costs?’ of the key information document, specifying where and how such costs may differ from the actual costs the retail investor may incur or may depend on the retail investor choosing to exercise or not exercise certain options.