Industry bodies split over ESMA proposal for fund price calculator

Reinforces MiFID II cost disclosure requirements

European Securities and Markets Authority (ESMA) proposals to reinforce MiFID II cost disclosure requirements with fund price calculators have been met with scepticism by some industry commentators, although others argue the tools could help inform savers.

In a paper released last week, ESMA said "reliable on-line calculators or central databases" could complement the cost disclosure requirements mandated by MiFID II, UCITS and PRIIPs. "Investors may have difficulties in comparing the costs of different investment products as there are currently no fund calculators or central databases on costs publicly available," it said. "Experience has shown the difficulties of disclosing comprehensive and relevant information on costs in one table or one summary cost indicator." The body, which is responsible for adopting MiFID II into EU legisl...