Pension providers say they will look to force all fund managers to publish transaction costs, regardless of whether they are signed up to the Investment Management Association’s voluntary disclosure rules.
Earlier this month the Association of British Insurers announced plans to improve the disclosure of costs and charges.
It said transaction cost publication would be based on voluntary IMA disclosure rules, leading shadow pensions minister Gregg McClymont to raise concerns the costs would only be available if the underlying fund managers were signed up to the IMA code.
So far, 14 pension providers have signed up to the new ABI standards, due to be implemented next summer for new automatic enrolment schemes and by 31 December 2015 for older schemes.
ABI director of life, savings and protection Stephen Gay says: “The commitment to disclose transaction costs will not be dependent on adoption of the IMA’s code by fund managers.
“The providers who have signed the ABI code will simply ask fund managers to disclose transaction costs to them.
“Our members have an ongoing relationship with all fund managers they use and we would expect those managers to take very seriously any request made of them.”
Keyte Ltd director Robin Keyte says: “Clear disclosure of transaction costs is crucial because they can be significant.
“But this is not going to be straightforward and we still do not know exactly how clearly the providers are going to display this information.”
An IMA spokeswoman says: “We welcome the ABI’s endorsement of our guidance and look forward to working with them to improve consistency and transparency for pension scheme members.”