Consumer Panel to launch review into 'unjustified' fund charges

The Financial Services Consumer Panel is to launch an investigation into fund management costs after claiming some of the charges are "unjustified".

The panel - an independent statutory body which feeds the views of consumers to the government and the regulator - said the current system of charges and expenses levied on investors in funds was not transparent enough, with the charges impacting returns. It follows the FCA's own work on annual management charges (AMCs), published in May, which saw the regulator urge funds to move away from the AMC in favour of a consistent use of the more comprehensive ongoing charges figure (OCF). In its annual report today, the Consumer Panel suggested there is more work to be done. "The many la...