Costs and Associated Charges
On 3rd January 2018, the new European legislation, the Markets in Financial Instruments Directive and the Markets in Financial Instruments Regulation (collectively, “MiFID II”) took effect across all European Union (EU) member states, including Cyprus.
Investor Protection- Costs & Associated Charges Information
Pursuant to MiFID II, Bank of Cyprus Public Company Limited (“Bank of Cyprus”, the “Bank”, “us”, “we” and “our”, as appropriate) has an obligation to provide you (the “Client”, “yourself” and “your”, as appropriate), with clear and comprehensible information regarding the Bank and its services, the financial instruments and proposed investment strategies, execution venues and all costs and associated charges in good time before the provision of services. This is done in order to ensure your awareness of all costs and associated charges to be incurred as well as to enable you to evaluate such information and compare with different financial instruments and investment services, further to the information already provided in the agreement for the provision of investment services and activities and ancillary services and/or for the provision of global custody services (the “Agreement”) and/or the MiFID Pre-Contractual Information Package (the “Info Pack”) and the "Product Governance and Costs and Associated Charges Information" pack.
Two types of disclosures will be made to you:
- On an ex-ante basis (i.e. before you trade) disclosures of aggregated expected costs and associated charges for the relevant investment service and financial instrument.
- On an ex-post basis (i.e. after you trade), disclosures of aggregated costs and associated charges that have actually been incurred by you for the relevant investment service and financial instrument. This will be provided to you annually on a personalised basis.
All costs and associated charges which should form part of the amount disclosed to you should be separated and aggregated in two main categories:
- Costs and associated charges related to the financial instrument (the “Financial Product Costs” or “Product Costs”). These should generally be considered as costs related to the manufacturing and managing of the financial instrument.
- Costs and associated charges charged for the investment service(s) and/or ancillary services (the “Investment Service Costs” or “Service Costs”). These should generally be considered as costs related to the establishment and maintenance of a position in a financial instrument charged by us or other parties.
For each of these categories, we will show separate figures comprising:
- Entry Costs which may include one-off, incidental, transaction and ancillary services costs which occur upon entry.
- Running Costs which may include on-going, incidental, transaction and ancillary services costs.
- Exit Costs which may include one-off, incidental, transaction and ancillary services costs which occur upon the sale of a financial instrument.
Should you require more information or clarification about or costs and associated charges or examples of how these are applied across different products and asset classes please contact your Banker.
Please see below related documents.
C. ETFs Expense Ratios