The Investment Association (IA) has published a discussion paper “Investment matters” on the meaningful disclosure of costs and charges, and a summary paper which provides an overview of this area.
The aim of the discussion paper is to provide a framework for costs and charges disclosure based on a set of principles for good disclosure which the IA has built up over the past three years.
The paper covers the following topics:
- the IA’s approach to disclosure, including the difference between product charges and transaction costs and explains why both should be disclosed separately;
- an analysis of portfolio turnover metrics, which, although not cost measures in, and of, themselves, assist in providing an indicator of activity levels within portfolios (i.e. how much buying and selling of stocks and securities is taking place); and
- a proposal for a “product neutral approach” for charge and transaction cost disclosure.
There is no formal deadline for comments.
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