FCA writes to asset managers as part of the fund charges review
20 August 2013 at 12:00
The Financial Conduct Authority (FCA) has written to 11 fund groups as part of a thematic review into fund charges, according to an article in IFAonline.co.uk
The regulator is seeking to examine whether retail investors can understand and compare fund charges and costs amid concerns over the complexity of some charging structures.
A spokesperson for the FCA said the review would be more far-reaching than the Investment Management Association's push on cost disclosure.
The trade body is seeking to introduce a disclosure regime based around a single "pounds and pence" figure for fund charges. The FCA's own review will seek to analyse all costs charged to the end investor.
"We want to get a feel of whether consumers can get the right information to properly compare prices and costs. People are aware of major charges but during the buying process there are add-ons that can make things difficult”, a spokesperson said. The regulator expects to conclude discussions by the end of 2013.