Groups back latest cost proposals but performance fees escape fresh scrutiny

Groups back latest cost proposals but performance fees escape new rules

Calls for fund managers to "abandon" their emphasis on annual management charges (AMCs) have received a cautious welcome from the industry, but question marks remain over other costs.

The FCA last week published a review of asset managers’ charging disclosure, in which it found several examples of “bad practice”. It has called on fund houses to use the Ongoing Charges Figure (OCF) consistently in all UCITS fund marketing material. FCA rules already require the OCF to be the “prominent charges figure” for UCITS funds. The IMA – whose voluntary guidance already recommends member firms should not refer to AMCs in marketing literature – has subsequently urged all industry participants to stop referring to AMCs altogether. Fund groups are considering their positions ...