According to the German Securities Trading Act (WpHG), providers of securities services are under the statutory obligation to provide their customers with a list of all costs and benefits incurred in the prior-year reporting period at least once a year.
The first ex-cost disclosure of costs will be created for the calendar year 2018. Fondsdepot Bank sends the information for 2019 in July 2020.
No, the information is created every year for the preceding calendar year.
The ex-post disclosure of costs provides every customer with a transparent overview of the costs and benefits actually associated with his investment.
The ex-post disclosure of costs is based on the costs actually incurred in the preceding calendar year for a custody account, while the ex-ante disclosure of costs that is made available to every customer prior to the conclusion makes use of the costs incurred for the individual transaction as an indicator of the costs that must be expected.
The ex-ante disclosure of costs presents the projected costs of a specific investment, while the ex-post disclosure of costs presents the actual costs of all investments made by the customer in the calendar year. This results in differences.
Even if a customer merely makes a single investment, differences may occur between the two disclosures, as the ex-ante disclosure of costs represents an annual view from the date of conclusion, while the ex-post disclosure of costs comprises calendar years.
No, every bank is under the obligation to do so. The bank prepares the disclosures for all customers of Fondsdepot Bank.
"Service costs" include issue premiums, transaction costs, fees for the creation of copies, the custody fee and the benefits received.
At the bottom line, both tables contain the same costs, though from different perspectives. The table "Disclosure of costs by cost types" breaks down the costs by service costs and fund/product costs, while the table "Disclosure of costs for the custody account per financial instrument" breaks down the costs by financial instruments.
The costs incurred for the fund, i.e. the administration fee (e.g. less subsidies granted to the bank), the ancillary costs and the transaction costs of the fund are summed up under "Fund/product costs". The costs are taken into consideration in the pricing and will not be charged to the customer at the custody account level.
Benefits include commission, fees and other monetary payments as well as all non-monetary benefits that are granted by third parties or paid to third parties in connection with the securities services.
This especially includes the new business and portfolio commission that distribution partners receive in connection with the investment consulting or brokerage. For example, non-monetary benefits include training events for products to ensure high consulting and product competence.
Apart from the distribution partner, Fondsdepot Bank may also receive or grant benefits in connection with the securities services.
The item is presented from the perspective of Fondsdepot Bank. Depending on the business transaction, Fondsdepot Bank receives part of the issue premium and the administration fee.
As the liability umbrella provider, Fondsdepot Bank first receives the payments from business plans and contests for contractually tied agents, which are later forwarded to these persons.
The new business and portfolio commission that is forwarded to distribution partners is consolidated under the "Benefits granted".
The average net inventory value represents the average value of a customer portfolio throughout a calendar year on the basis of the value on the last day of each month. This value fluctuates, e.g. due to changes in the performance of the individual funds in the customer portfolio.
Fondsdepot Bank is under the statutory obligation to provide their customers with a list of all costs and benefits incurred in the prior-year reporting period at least once a year.
If reportable securities are found in a custody account that has already been deleted, the delivery of an ex-post disclosure of costs is mandatory.
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