Consumer Panel proposes 'single retail fund charge' in radical report

The Financial Services Consumer Panel has said the Financial Conduct Authority (FCA) should consider making fund groups overhaul charging structures in a "radical" change to standard industry practice.

In its review of retail fund charges published today (17 November), the Panel – an independent body which advises the FCA on policy – said the retail industry enjoys “largely unchallenged, the potential to exploit consumer behaviour, product structure complexity and the lack of cost transparency”. Among its proposed ideas for reform is the replacement of all fund costs with a single investment management charge, representing the only cost charged to the end investor. “All other intermediation costs, charges and expenses incurred by the investment manager, including transaction costs, ...