Ex-ante Costs and Charges Disclosure
The information disclosed hereafter does not constitute a recommendation to buy or sell a financial instrument (“product”). It is intended for clients and potential clients (hereinafter “clients” or “you”) that may contemplate a transaction in a product with Crédit Agricole Corporate and Investment Bank (hereinafter “CACIB”).
To improve transparency to its clients and comply with Article 24(4) of MiFID II (Directive 2014/65/EU) and Article 50 of the Delegated Regulation (EU) 2017/565, CACIB is disclosing before a trade (ex-ante) to its clients a reasonable estimate of the costs and charges related to products and services offered.
Where a limited application of the disclosure requirements is contemplated in article 50(1) of the Delegated Regulation (EU) 2017/565 and under the proportionality principle, according to which obligations are proportionate to types of products, clients and services, CACIB will provide costs and charges information by way of tariff grids. The tariff grids contain the maximum level of charges CACIB may apply to individual transactions under normal market conditions, as updated from time to time.
In some circumstances with Eligible Counterparty and Professional Client, disclosure will be solely by way of continuously available tariff grids, as opposed to costs and charges for each individual transaction. In this case, CACIB will disclose the estimated costs and charges for the relevant transaction, in addition to the tariff grids, if CACIB charges more than the maximum level or the client requests costs and charges disclosure for that transaction.
Estimated costs and charges will be disclosed to Retail Clients for each transaction in all cases. Where a Retail Client located in the European Economic Area contemplates trading a product which is a Packaged Retail and Insurance-based Investment product under the Regulation (EU) 1286/2014 (PRIIPs Regulation), the Key Information Document will contain the full costs and charges disclosure.
Costs and charges for an individual transaction are the difference between the quoted price for the product and its fair value, both determined by CACIB. The fair value of each product is based on observable market parameters, internal pricing model assumptions, provisions, valuation adjustments and essential costs of making the product available. Costs and charges is the component of the selling price above the fair value representing CACIB’s profit and ancillary costs such as brokerage, distribution, index licence, listing, rating fees.
Should you require more details on the costs and charges, please refer to your usual CACIB contact.
CACIB tariff grids are available here.