ID 1123. Information to clients
Information to clients about costs and charges
Art. 19, para 3 of the 2004 directive refers to 'clients or potential clients', whereas the 2006 implementing directive only refers to 'retail or potential retail clients'. Does this mean that the obligation to inform clients about the costs and charges only applies to retail clients or does the implementing directive specify this obligation for retail clients and, consequently, does art. 19, para 3 2004 directive imply that there is a general obligation to inform all clients (also professional) about the costs and charges ?
Your last interpretation is the correct one. There is a general obligation to inform all clients irrespectively of their sophistication (i.e. also professional) about the costs and charges. Indeed, the provisions of Article 19 para.3 of the Directive should be understood as general principles ruling information to be delivered to retail and professional clients. It needs to be noted that the fact that Article 33 of Implementation Directive 2006/73/EC related to the fourth indent of Article 19(3) of Directive 2004/39/EC specifies the content of the information about costs and associated charges specifically for retail clients does not preclude the obligation to provide such information to the benefit of all clients, including professional clients.