"If the government does not take this step, then we would urge the FCA to use its new powers to focus regulated cost disclosure on the cost of asset management. This would shine a light on an expense which is obscured by the current approach, which bundles costs together. This makes it more difficult for consumers to make price comparisons and reduces competition in the public interest.”
Another impact is being felt by those who run fund of fund strategies, as thsis may restrict their capacity to buy investment trusts within those funds, as the costs appear higher.
Rob Burdett, head of multi-manager at Columbia Threadneedle said: “Cost transparency is an important feature of consumer information, but there were flaws and unintended consequences as to how other layers of legislation impacted how LCICs costs were presented. The response from the LSE and other industry participants seeks to resolve this issue.”
david.thorpe@ft.com
