DISC 6.3 Presentation of costs and charges information

1. (1) The manufacturer must clearly and prominently include in the product summary each of the following figures, expressed as a percentage of the applicable assumed investment amount and as a cash amount rounded to the nearest pound sterling:
   1. (a) the one-off entry costs figure;
   2. (b) the one-off exit costs figure;
   3. (c) the ongoing costs figure; and
   4. (d) where applicable, the ongoing costs of any investee closed-ended investment funds.
2. (2) The obligation in (1) does not apply where the figure is zero.

The manufacturer must provide in the product summary a concise, plain English description of the nature and content of each figure in DISC 6.3.1R, as applicable.

The manufacturer must provide written confirmation to a distributor where any of the figures referred to in DISC 6.3.1R are calculated as zero, confirming that:

1. (1) the category of costs and charges which corresponds to that figure is applicable to the type of consumer composite investment, but has been calculated as zero; or
2. (2) the category of costs and charges which corresponds to that figure is not applicable to the type of consumer composite investment.

A manufacturer should consider providing the distributor of a consumer composite investment with a breakdown of the identifiable elements of ongoing costs and other contextual information or explanation of these costs to assist the distributor in enabling the retail investor to understand the nature and impact of those costs and charges.

The manufacturer must include in the product summary the transaction cost figure, expressed as a percentage of the applicable assumed investment amount.

In respect of a consumer composite investment which is subject to performance fees or carried interests, the manufacturer must provide the following information in the product summary:

1. (1) a concise explanation in plain English of how any applicable performance fees or carried interests operate;
2. (2) a summary in plain English of the applicable terms and conditions which identifies, in particular, any benchmark governing when a performance fee or carried interest will or could be applied, paid or levied, and how they are to be calculated if due; and
3. (3) at least one example illustrating how much the performance fee and/or carried interest (as applicable) could amount to if applied, paid or levied, based on a hypothetical investment of £10,000 and reasonable assumptions about the performance of the consumer composite investment.

In relation to indirect performance fees or carried interest falling within DISC 6.3.7R(2), the requirement in DISC 6.3.6R will be satisfied where the product summary includes a general explanation of the performance fees or carried interest applicable to investee consumer composite investments such as to provide the retail investor with an reasonable basis for understanding the likely impact of those costs on their investment.