This Annex belongs to COBS 6.1ZA.14BR.1
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.
| Cost items to be disclosed | Examples | |
| One-off charges related to the provision of an investment service | All costs and charges paid to the firm at the beginning or at the end of the provision of investment services. | Deposit fees, termination fees and switching costs². |
| Ongoing charges related to the provision of an investment service | All ongoing costs and charges paid to 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 firm or other parties. | Broker commissions³, entry- and exit-charges paid to the fund manager, platform fees, mark ups (embedded in the transaction price), stamp duty, transactions tax and foreign exchange costs. |
| 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 above. | Research costs. Custody costs. |
| Incidental costs | Performance fees. | |
Table 2 – All costs and associated charges related to the financial instrument (other than a consumer composite investment4) that should form part of the amount to be disclosed.
| 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 thefinancial instrument. | Front-loaded management fee, distribution fee. |
| Ongoing charges | All ongoing costs and charges related to the management of the financial instrument that are deducted from the value of the financial instrument during the period of the investment in the financial instrument. | Management fees, service costs, swap fees, securities lending costs and taxes, financing costs. |
| All costs related to the transactions | All costs and charges that are incurred as a result of the acquisition and disposal of financial instrument. | Broker commissions, entry- and exit-charges paid by the fund, mark ups embedded in the transaction price, stamp duty, transactions tax and foreign exchange costs. |
| Incidental costs | Performance fees. | |
¹ It should be noted that certain cost items appear in both tables but are not duplicative since they respectively refer to costs of the product and costs of the service. Examples are the management fees (in Table 1, this refers to management fees charged by a firm providing the service of portfolio management to its clients, while in Table 2 this refers to management fees charged by an investment fund manager to its investor) and broker commissions (in Table 1, this refers to commissions incurred by the firm when trading on behalf of its clients, while in Table 2 this refers to commissions paid by investment funds when trading on behalf of the fund).
² Switching costs should be understood as costs (if any) that are incurred by clients by switching from one firm to another.
³ Broker commissions should be understood as costs that are charged by firms for the execution of orders.
4 The costs and charges to be disclosed to a retail customer in relation to a consumer composite investment are those required by DISC to be disclosed in the product summary. See COBS 6.1ZA.14BR(3)(b).