View more on these topics

Labour and IMA in war of words over charges

Shadow pensions minister Gregg McClymont and the Investment Management Association have clashed over the appropriate level of disclosure on investment charges.

The IMA published guidance on disclosing fund charges in September 2012. It included recommendations to provide three-year averages for transaction costs, such as broker commission and transfer taxes, as a percentage of a fund’s net asset value, and for the disclosure of total costs, not just annual management charges.

Speaking to Money Marketing at the Labour party annual conference, McClymont said: “Decisions on costs and charges cannot be left to trade associations whose members have a potential interest in not declaring all charges.

“While the IMA have adopted a draft disclosure table which contains some steps forward, it still leaves out key cost components.

“This is a case of a trade association being obliged by its members to walk slowly backwards from bad practice rather than seizing the moment to actively pursue the interests of savers.”

McClymont wants charges to be broken down to include the bid offer spread, the transaction costs of underlying funds where a fund invests in another fund, and profits retained, if any, from fund managers from lending stock owned by the pension scheme or from interest earned on cash.

But IMA chief executive Daniel Godfrey says: “The IMA’s proposals for accounting to investors for the costs they have incurred from being in a fund are simple, comprehensive and transparent. They represent a dramatic step forward and avoid repeating the mistakes of the past where attempts to deliver ‘supposed accuracy’ have left consumers with a bewildering calculation that often depends on making heroic assumptions about the future.” 

Recommended

Money-Coins-Pound-Currency-Close-up-700x450.jpg

Investec launches lower share class

Investec Asset Management has launched a lower cost share class available to selected distribution partners. The new annual management charge of 0.65 per cent will be available on a number of Investec’s funds in its Managed Solutions and Specialist fund ranges. The AMC on unaffected funds and for those firms who have not secured preferential […]

Labour cautions on retrospective group commission ban; pushes standard 50bps charge

Shadow pensions minister Gregg McClymont has urged caution as policymakers eye a retrospective ban on consultancy charging and commission associated with group schemes. The Government has banned consultancy charging since May when it first announced its plans but it is also considering retrospective action on charges levied between January and May. The Department for Work […]

Bank-of-England-Panorama-BoE-700x450.jpg

Bank of England to review Help to Buy to stop housing bubble

The Bank of England is to be given the remit of monitoring the Help to Buy scheme and to recommend adjustments if there are signs that it is creating a house price bubble. The financial policy committee will conduct annual reviews of the scheme every September and will be able to recommend modifications such as […]

Ed-Miliband-Labour-Conference-700x450.jpg

Miliband would reduce small business rates with corp tax reversal

Ed Miliband will today announce plans to increase corporation tax and use the proceeds to reduce rates for small businesses if Labour wins the next election. Corporation tax is due to fall from 21 per cent to 20 per cent in April 2015, but today the Labour’s leader will pledge to reverse the cut should […]

Treasury looks to address advice gap

By Jamie Clark, Business Development Manager, Royal London Hot on the heels of consultations on tax relief and pension transfers and early-exit charges comes a new investigation into the advice gap, and how this can be bridged. Ever since the new pensions freedoms were introduced, concerns have been raised about how people can get access […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com