In anticipation of new regulations for markets in financial instruments (MiFID II), ABN AMRO has decided to further improve the transparency of its annual investment fees by providing clients with breakdowns of fees charged for separate investment categories.
Our website will provide calculation models which show the client a breakdown of the fees charged for each investment category. The models will show the bank’s fees as well as the fees charged by asset managers, giving retail clients with investments more insight into the total costs involved in their investment activities.
Introduction of calculation tool
ABN AMRO is introducing a calculation tool on its website. This tool provides retail clients with a more accurate calculation of the costs they should expect for their specific investments. The tool will be made available to private banking clients in January 2015.
The website calculation tool provides the following breakdown of investment fees.
Depending on the investment category: advisory fees, service charges or the all-in rate
Transaction fees for selling and purchase orders
Asset management fees. In addition to the fees an investor pays his bank, he pays a management fee for each fund he invests in. The management fee covers the costs an asset manager makes to manage the investment fund. These costs are included in the price of the investment fund and ABN AMRO does not charge the client separately for them.
Customised summaries of investment fees
Starting in 2016, ABN AMRO will send its clients customised statements of the investment fees charged to them.