Changes from report parliamentary committee draft to plenary report

Added(i) the first subparagraph is amended as follows:

RemovedDirective 2009/65/EC

Added- the introductory wording is replaced by the following:

RemovedArticle 4 – paragraph 1 – point 1 – point a, Article 14 – paragraph 1 f: deleted / (deleted) / (deleted)

Added‘Appropriate information shall be provided in good time prior to the provision of any service or the conclusion of any transaction to clients or potential clients with regard to the investment firm and its services, the financial instruments and proposed investment strategies, execution venues and all costs and related charges. That information shall include the following:’;

RemovedDirective 2009/65/EC

Added- in point (a), the following points (iv) and (v) are added:

RemovedArticle 4 – paragraph 1 – point 1 – point b – point iii, Article 14 – paragraph 2 – subparagraph 1 – point e: (e) provide for criteria to determine whether costs are justified and proportionate in accordance with paragraph 1b, point (b);

Added‘(iv) where the investment firm provides independent advice to a retail client, whether the range of financial instruments that is recommended is restricted or not to well-diversified, non-complex as referred to in article 25(4)(a) and cost-efficient financial instruments only;

RemovedDirective 2011/61/EU

Added(v) how the recommended financial instruments take into account the diversification of the retail client’s portfolio;’

RemovedArticle 5 – paragraph 1 – point 1 – point a, Article 12 – paragraph 1 e – subparagraph 1: Member States shall require AIFMs to assess at least annually the conditions mentioned in paragraph 1b, point (b). The assessment shall take into account the criteria set out in the pricing process.

Added- points (b) and (c) are replaced by the following:

RemovedDirective 2011/61/EU

Added‘(b) the information on financial instruments and proposed investment strategies (including for diversification purpose) must include appropriate guidance on and warnings of the risks associated with investments in those instruments or in respect of particular investment strategies and whether the financial instrument is intended for retail or professional clients, taking account of the identified target market in accordance with paragraph 2;’

RemovedArticle 5 – paragraph 1 – point 1 – point a, Article 12 – paragraph 1 e – subparagraph 2: deleted

Added‘(c) the information on costs and charges as referred to in Article 24b;’;

RemovedDirective 2011/61/EU

Added- the following point (d) is added:

RemovedArticle 5 – paragraph 1 – point 1 – point a, Article 12 – paragraph 1 f: deleted / (deleted) / (deleted)

Added‘(d) where the services are provided under the right of establishment or the freedom to provide services:

RemovedDirective 2011/61/EU

Added(i) the Member State in which the head office of the investment firm and, where appropriate, the branch offering the service is/are located;

RemovedArticle 5 – paragraph 1 – point 1 – point b, Article 12 – paragraph 3 – point b: (b) provide for criteria to determine whether costs are justified and proportionate in accordance with paragraph 1b, point (b);

Added(ii) the relevant national competent authorities of such investment firm or where relevant, of such branch.’;