Requirement (MIFID)
Article 41 Reporting obligations in respect of portfolio management
Requirements MIFID - DIRECTIVE 2006/73/EC
Description
Description
1. Member States shall require investments firms which
provide the service of portfolio management to clients to
provide each such client with a periodic statement in a durable
medium of the portfolio management activities carried out on
behalf of that client unless such a statement is provided by
another person.
2. In the case of retail clients, the periodic statement required
under paragraph 1 shall include, where relevant, the following
information:
(a) the name of the investment firm;
(b) the name or other designation of the retail client's account;
(c) a statement of the contents and the valuation of the
portfolio, including details of each financial instrument
held, its market value, or fair value if market value is
unavailable and the cash balance at the beginning and at the
end of the reporting period, and the performance of the
portfolio during the reporting period;
(d) the total amount of fees and charges incurred during the
reporting period, itemising at least total management fees
and total costs associated with execution, and including,
where relevant, a statement that a more detailed breakdown
will be provided on request;
(e) a comparison of performance during the period covered by
the statement with the investment performance benchmark
(if any) agreed between the investment firm and the client;
(f) the total amount of dividends, interest and other payments
received during the reporting period in relation to the
client's portfolio;
(g) information about other corporate actions giving rights in
relation to financial instruments held in the portfolio;
(h) for each transaction executed during the period, the
information referred to in Article 40(4)(c) to (l) where
relevant, unless the client elects to receive information
about executed transactions on a transaction-by-transaction
basis, in which case paragraph 4 of this Article shall apply.
3. In the case of retail clients, the periodic statement referred to
in paragraph 1 shall be provided once every six months, except
in the following cases:
(a) where the client so requests, the periodic statement must be
provided every three months;
(b) in cases where paragraph 4 applies, the periodic statement
must be provided at least once every 12 months;
(c) where the agreement between an investment firm and a
retail client for a portfolio management service authorises a
leveraged portfolio, the periodic statement must be
provided at least once a month.
Investment firms shall inform retail clients that they have the
right to make requests for the purposes of point (a).
However, the exception provided for in point (b) shall not apply
in the case of transactions in financial instruments covered by
Article 4(1)(18)(c) of, or any of points 4 to 10 of Section C in
Annex I to, Directive 2004/39/EC.
4. Member States shall require investment firms, in cases where
the client elects to receive information about executed transactions
on a transaction-by-transaction basis, to provide promptly
to the client, on the execution of a transaction by the portfolio
manager, the essential information concerning that transaction
in a durable medium.
Where the client concerned is a retail client, the investment firm
must send him a notice confirming the transaction and
containing the information referred to in Article 40(4) no later
than the first business day following that execution or, if the
confirmation is received by the investment firm from a third
party, no later than the first business day following receipt of the
confirmation from the third party.
The second subparagraph shall not apply where the confirmation
would contain...
Comment
Applies to Article 19(8) of Directive 2004/39/EC