A draft of the template for the disclosure of transaction costs and charges set up by an FCA panel will be released by the end of this week, Money Marketing understands.
The institutional disclosure working group is an independent panel created by the regulator last September following the package of remedies outlined in the FCA’s final report into the asset management industry.
The group, chaired by transparency champion Chris Sier, has been asked to come up with a standard template for a more transparent disclosure of the costs and charges that asset managers were asked to adhere to at the end of 2017.
At the end of January this year a small group of fund managers started testing the template, with the tests later extended to a wider group of investment firms. A number of companies are still testing how the design for the costs disclosure would work for them.
It is understood the working group will outline the steps it has undertaken since September in a report that the FCA will release to the public towards over the summer. The final costs and charges template will be made public via the report.
The disclosure template, which will be distributed more widely to companies, is not compulsory for pension funds and asset managers but is meant to disclose granular data on costs and returns to investors.
In March, the panel created an additional group to work on the complex data collection in the defined benefit and defined contribution pension space. Also discussed was how new European rules brought in by Mifid II and Priips could interact with the template.