In this article we want to deepen the document that you absolutely must request from your bank: the MIFID report. This certification is a detailed statement of how much you have paid for your investments. In fact, banks apply a series of costs and charges to our investments. With the MIFID report they must summarize in a clear and understandable way all the deductions applied.
This obligation arose in 2018 pursuant to the aforementioned Community legislation MIFID 2. The reporting is mandatory for both banks and networks of financial advisors. By reading the document you will find out how much you have spent on the management of the investments that the bank or the financial promoter have recommended. The prospectus must clearly specify the costs charged by the bank and the management companies. Above all, however, it must indicate the impact on returns. You will then find out how much the accrued gain has cost you or even how much you have paid to record losses.
The salient points of the report
The statement will indicate costs that are often unknown to clients, but which can significantly affect the performance of our portfolio. The document that you absolutely must request from your bank will indicate the negotiation, administration, management and performance costs. In addition to a series of fees withheld directly by the bank for various reasons. In short, the MIFID report helps savers to understand how much the institution and any promoter cost annually. The customer can then calculate the actual cost of the consultancy. According to some statistics, in Italy the average costs of managing assets fluctuate between 2 and 4%. Significantly higher percentages than the European average, and worryingly close to the average returns of managed portfolios. In other words, we may find that we have earned little or no money on our investments
The document that you absolutely must request from your bank
The statement could anger many savers. In case they find that they are spending more on financial advice than on annual food expenditure. The reporting will also shed light on the actual need to subscribe to certain classes of funds or to purchase policies. In short, many savers may wonder if the advice received was really disinterested. Several banks sent MIFID statements by email in August.
These times and methods may not give adequate visibility to the communication. If you haven’t received it yet, know that the document you absolutely must ask your bank is the MIDIF statement. We have no doubt that banks are happy to give customers visibility of their costs. If not, however, remember that obtaining this document is the right of all savers. With the hope that the investment costs do not fall within the five things that your bank doesn’t want you to know.
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