Consensus on cost disclosure is still some way off

Consensus on disclosure still a way off

Words like ‘clear', ‘clean' and ‘transparency' have been widely used over the past few years as fund groups and advisers alike try to improve clarity on costs.

But how much information does the end investor really want or need, and would a detailed breakdown of costs and charges be more useful than a single comprehensive fee? These are questions which have generated much debate in the industry over recent years, but an industry-wide consensus still seems a long way off. The Investment Association last week published its latest paper on the subject, entitled: Meaningful Disclosure of Costs and Charges. The use of the word ‘meaningful’ here appears particularly relevant to the discussion. For example, it is a welcome development the IA suggest...