Investor protection in sales · Question 6 of 12

What must a bank inform retail clients about before a securities transaction?

1 answer is correct. Easy

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Answer

  • A The expected costs and their effect on the return

Explanation

Under MiFID II, investment firms must disclose all costs and associated charges in advance, as an amount and as a percentage. The effect of costs on the return must also be shown. After the transaction, an annual statement of the costs actually incurred follows.

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