Hargreaves Lansdown CEO: Asset managers should pay all costs of running funds

Need for more regulation

Hargreaves Lansdown CEO, Ian Gorham, has argued for more regulation to stop asset managers charging extra costs to investors.

Speaking to the Financial Times, Gorham (pictured) said investors should be charged a single cost of running a fund instead of ongoing charges for operating costs. Investors are currently being charged an ongoing charges figure (OCF) covering such fees as the price of research, legal costs, audit costs and fund administration, which Gorham believes should be covered by the asset management firms. Gorham said: "There should be one charge and asset managers should have to pay all the costs of running the fund out of that charge. At the moment, it is not always the case that they do. ...