The FCA has moved to crack down on the potential for fund costs to rise as a result of the introduction of clean share classes.
Responding to comments that the price of some funds could actually increase as a result of a switch to clean share classes, the regulator warned groups it would be "concerned" if the TER on funds went up. "There have also been comments that the total expense ratio (TER) on clean share classes is higher than that for share classes with rebates built in," it said. "We do not expect these policy changes to be used as a reason by the industry to increase the fees they are able to receive. "With regard to the TER on funds, if we see the average TER across the industry increase as a res...
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