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IMA issues final guidance for fund charges disclosure

Richard Saunders 450 whitebg

The Investment Management Association’s final guidance for fund charges calls on UK asset managers to go “above and beyond” the current European regulatory requirements.

The trade body has asked fund firms to provide enhanced disclosure of transaction costs by providing three-year average figures for broker commissions and transfer taxes as a percentage of a fund’s net asset value.

The guidance also calls on firms to disclose the ongoing charges figures rather than the annual management charge, as well as a clearer explanation on the purpose of all charging costs such as entry and exit, performance and transaction fees.

The new guidance is designed to boost consumer understanding of fund charges and costs. The IMA has also launched a new online guide to charges and costs.

The IMA has asked all members to provide the additional information on their website by March 2013.

Chief executive Richard Saunders (pictured) says: “IMA’s new guidance is intended to benefit all investors and in particular, those who want more detailed information about fund charges and costs.”

Skerritt Consultants head of investments Andy Merricks says: “This level of transparency will help remove all the negativity in the industry about fund charges.”

The asset management industry has been divided on costs since former New Star chief investment officer Alan Miller launched the True & Fair Campaign in February calling for 100 per cent transparency on where money is invested and the “full underlying cost of investments”.


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