Investment Management Association chief executive Richard Saunders has urged UK industry representatives to back the European Commission’s proposals to improve disclosure of charges in financial services.
The EC’s packaged retail investment products directive is set to force providers of retail investment products to disclose information to investors in a standardised key information document.
In April, a leaked draft of the proposals, seen by Money Marketing, suggests information provided to customers by financial services firms will need to include details of product costs.
The draft says Kids must include the nature of the product and its objective, any guarantees or capital protection and the product’s risk and reward profile.
Speaking at TheCityUK’s pension conference in London last week, Saunders warned that the proposals will face stiff opposition from some European insurance and banking institutions. He urged UK industry representatives to rally behind Prips to ensure that a “gold standard” of disclosure is adopted across the financial services sector.
Saunders said: “I think transparency in charges is critical. Within the fund sector, we do have an extremely transparent charging regime.
“There is legislation being put forward in Brussels shortly called the packaged retail investment products directive. This will seek to extend that sort of gold standard of charges disclosure to all products.
“It is going to run into a storm of resistance from the continental European banking and insurance industries. I suggest everyone in the industry gets behind the legislation and drives through gold standard transparency across the financial services sector.”