Shaughnessy and Miller tackle fund charges on Today programme

Gary Shaughnessy, Fidelity's UK managing director, said a new fund charging method called total cost of ownership (TCO) should replace existing fund charges including TERs.

Following up its call for greater transparency on charges, Shaughnessy told BBC Radio 4's The Today Programme all the costs of a fund - including dealing costs and any government tax such as stamp duty - should be included in a new charge.

The total cost of ownership charge would tackle what Shaughnessy (pictured) said was the "increasingly complicated" way fund charges are being expressed.

"We are proposing a new measure called total cost of ownership which covers all these costs," he said.

Fidelity is calling for investors to be able to see the total cost of owning a fund - including fund, distribution and stock dealing costs as well as platform administration charges - in order for them to be able to compare funds on a like for like basis.

Meanwhile Alan Miller, former New Star chief investment officer and founding shareholder of New Star Asset Management, has launched a campaign aiming to raise awareness of fund charges.

Appearing on The Today Programme alongside Shaughnessy, Miller - who launched wealth management firm SCM Private last year - said his new campaign aims to help the British public navigate "a minefield of hidden charges with their investments and savings."

The True and Fair Campaign has produced a manifesto which calls on the "government, parliament, and regulators to require that the UK investment management industry provide every prospective customer with:

• A guarantee of 100% transparency in respect of where their money is invested.
• A guarantee of 100% transparency as to the full underlying costs of investments.
• A code and labelling scheme, which ensures consumers are provided with product information in a consistent, unified and understandable format.