FEES AND COMMISSIONS
There are three kinds of fees and commissions for Fixed Income transactions: trading, settlement and custody. The intermediary charges trading fees and commissions for the work carried out. These go to pay for the work carried out and any taxes charged by the market.
Settlement costs are charged by the intermediary for paying for the securities (for purchases) or for receiving the money (for sales). Custody fees are charged by the financial entity for physically holding the securities (if they are physical, which is becoming less frequent) or for holding a computer record of the same.
The depositary or custodian will also act on the retail investor’s behalf to collect coupons or to request the face value at maturity and will notify them of any incidents (early redemptions, tax withholdings, etc.). Finally, the custodian or depositary will keep the investor regularly informed as to the value of their portfolio.
Maximum fees and commissions are subject to CNMV approval and must be officially published and available to all customers.