IMA says groups should 'abandon' all use of AMCs

The Investment Management Association (IMA) has called on members to "abandon" the use of annual management charges (AMCs) on any literature following the Financial Conduct Authority's guidance on fund fees.

Daniel Godfrey, IMA chief executive, said: "The IMA's guidance has long been that member firms should not refer to the AMC in marketing literature, but should exclusively refer to the OCF [ongoing charges figure]. "The OCF provides a common standard for all the known costs and charges that a fund will bear in a single comprehensive ratio that is easy to understand and to compare. This is in stark contrast to the AMC because a range of other costs can be borne by the fund, making the AMC a poor reflection of the total cost at worst, and a poor basis for comparison at best. "The IMA cal...