The AMF presents its proposals to improve the readability of financial product fees in European law
Executive Summary
The Autorité des Marchés Financiers (AMF, France's financial markets authority) has proposed a new table for presenting subscription fees on financial instruments and an accompanying glossary to enhance investor readability and comparability, developed in collaboration with the Financial Sector Consultative Committee (FSCC) as input to the European Commission's Retail Investment Strategy. This matters because it targets reconciling MiFID 2 and PRIIPs disclosure requirements, which currently hinder clear fee communication, potentially influencing future EU-level amendments to improve retail investor protection without imposing new obligations. #
What Changed
- Alternative Fee Presentation Table: A proposed redesigned table for displaying costs associated with subscribing to financial instruments, emphasizing investor understanding rather than adding a new document; this requires evolving MiFID 2 regulations as current MiFID 2 and PRIIPs rules are incompatible for such clarity. - Glossary of Terms: A harmonized glossary defining key fee types, tested with non-professional investors using AMF consumer testing tools, to standardize terminology across professionals and aid comprehension. - No changes to fee calculation methodologies; focus is solely on presentation and terminology. #
What You Need To Do
- Monitor and Respond
- Internal Review
- Testing and Training
- No immediate obligations, as this is a non-binding proposal requiring EU law changes
Key Dates
Compliance Impact
Urgency: Medium – This is a consultative proposal without firm deadlines or binding rules, but it signals likely EU-level shifts in fee disclosure under MiFID 2/PRIIPs, impacting retail investor-facing firms. It matters for proactive compliance, as early adoption of clearer formats could mitigate future enforcement risks amid Retail Investment Strategy scrutiny, especially given AMF's history of f
Who is Affected
Summary
Collective investments Shares The AMF presents its proposals to improve the readability of financial product fees in European law