The FCA has appointed transparency campaigner Dr Chris Sier to chair a working group trying to create a template for disclosure of asset management costs and charges.
Sier, who is currently managing director of consultancy Stonefish and Professor of Practice at Newcastle University Business School, has been a vocal critic of practices in the industry in the past.
Responding to Money Marketing research last year showing that some fund managers are still not using the industry-agreed ongoing charges figure in fund factsheets, Sier called the situation “preposterous”.
As part of his research outfit FiNexus, Sier has also estimated that asset managers in the UK earn between £40bn and £120bn in extra costs retail and pensions investors “pay without knowing”.
Sier’s working group will primarily look at institutional investors as the FCA aims for “more consistent and standardised disclosure of costs and charges”.
The regulator has charged Sier with agreeing a template for disclosure of costs and charges by the end of the year.
The group is also aiming to come to a consensus on the promotion of the template, how they will make sure information in it is accurate and how the template could be subject to change going forward.
The FCA said in an update to its website today: “Dr Sier will assemble the working group shortly, which will include a range of industry and investor representatives, and will seek views from other stakeholders as part of their work. We expect the first meeting to be held in September.”
“The group will later consider disclosure for non-mainstream asset managers, and we expect that the working group membership may change at this point to reflect the different focus.”