FCA transaction costs consultation a step in the right direction
Jacqui Reid, associate director at Sackers, comments:
“Both the FCA and DWP already specifically require trustees and IGCs to assess and report on charges, including, where possible, transaction costs. However, without any corresponding duty on managers to disclose the relevant information to trustees and IGCs most are unable to access such information. It is great to see that the FCA is now taking steps to address this issue and provide some much needed clarity around costs. This is very much a step in the right direction.
“However, while it acknowledges the importance of a standardised approach to calculation, the FCA is not proposing a standard format for disclosure. In our experience, this is key. There is a balance to be struck between a form of disclosure that is meaningful enough for useful and direct comparisons across the market, but not difficult to decipher, and inefficient and costly for managers to implement. We look forward to seeing the industry and the FCA further engage with each other over the coming months to get the detail right.”