View more on these topics

Trade body pulls ‘Loch Ness’ statement after campaigner pressure

The Investment Association has taken down the press release that likened funds’ hidden charges to the ‘Loch Ness Monster’ of the investment sector after mounting pressure from transparency campaigners.

This month, following the implementation of Mifid II, research exposed some fund managers’ costs increase at least two times beyond the ongoing charges figure.

Industry experts have criticised what the IA previously said about fund fees, referring to a 2016 report that claimed there was “zero evidence” funds’ returns are affected by hidden fees.

At that time, the report was accompanied by a press release that branded hidden fund fees “the Loch Ness Monster of investments.”

Now, the IA has removed the release, after several requests by transparency campaigners to IA chief executive Chris Cummings.

The release has been replaced by a shorter summary of the report on the IA website.

An IA spokeswoman says: “The press release that accompanied the report ‘Investment costs and performance, August 2016’ has been removed as it does not reflect the content of the report or the views of the organisation under its current leadership.”

The IA says it is working with transparency campaigner Chris Sier as part of his role as chair of the FCA working group to design a new template on cost disclosure.

Recommended

UK-Currency-Money-Pounds-Notes-700x450.jpg
1

Asset manager to hike fund fees on Mifid II costs

Boutique firm Crux Asset Management will increase the cost of some of its funds as it plans to continue to charge clients for research after Mifid II, Money Marketing can reveal. Despite many peers having decided to absorb the costs, at the start of November the firm, created by ex-Henderson Global Investors star fund manager […]

Money-Cash-Coins-GBP-Pounds-UK-700x450.jpg
2

Vanguard fund fees won’t drop from Mifid II decision

It is understood there will be no direct savings for Vanguard investors Vanguard will not be dropping its fund fees despite its decision to absorb research costs under Mifid II. The $4.4trn fund manager led its US rivals on making a decision on research costs in August. But Money Marketing sister title Fund Strategy understands there will be no […]

Risk-reward-attitude-profit
6

FOS orders compensation over Sipp transfer to Ucis

The Financial Ombudsman Service has told a firm to compensate a client who was advised to transfer their Sipp into an unregulated collective investment scheme.     The client, referred to as Mr C, complained that advice he received from The Citimark Partnership to invest funds from his Sipp into an Ucis was unsuitable. Mr C […]

Gail Counihan

Is the hype around electric vehicles justified?

In order to muscle conventional vehicles off the road and become the dominant technology, electric vehicles need to be able to hold their own in three important ways: performance, practicality and affordability. Gail Counihan, Responsible Investment Analyst at Royal London Asset Management, takes a closer look at these three areas. Read the article here Past […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment