Investment Association launches public consultation on the standardisation of disclosure for charges and transaction costs
The Investment Association has today launched a public consultation on the standardisation of disclosure for charges and transaction costs.
The consultation sets out an industry code, which provides a blueprint for the reporting of charges and transaction costs using a consistent approach across the market and in line with regulatory requirements.
The consultation forms part of an ongoing industry wide initiative on enhanced transparency. As well as facilitating provision of data under MiFID II and PRIIPs, it is intended to be fully compliant with final rules for the UK DC market following FCA CP16/30. It will adapt, as necessary, to the conclusions of the FCA Asset Management Market Study.
Our work has been assisted by an Independent Advisory Board, which includes senior individuals from the UK pensions industry and representatives from consumer bodies, set up in July 2016 to provide advice and challenge to the IA. The Board has provided valuable counsel to the IA in the development of this disclosure work and has issued an interim report on progress so far and an outline of future work. This report can be found at http://theindependentadvisoryboard.co.uk/. The IA's work has also been undertaken in collaboration with the Local Government Pension Scheme Advisory Board, and in line with recommendations from the Financial Services Consumer Panel.
Jonathan Lipkin, Director of Public Policy, said:
"The asset management industry is fully committed to transparency and recognises the need to provide clear disclosure of both charges and the transactions costs incurred as part of the investment process.
"The new Code provides for the first time a common framework for enhanced disclosure across investment products and services. It is a major opportunity to consistently define and provide data on charges and transaction costs.
"The IA would like to work with the FCA to seek regulatory recognition for the new Code in the FCA's Conduct of Business Sourcebook.
"This consultation is designed to encourage feedback from industry, consumer, Government and regulatory bodies on the proposed approach ahead of the Code's final implementation and we welcome views from all stakeholders."
The closing date for consultation responses is Friday 19th May 2017. The IA will then review all feedback and publish a final set of proposals in Q3 2017.
