The fact that the IMA is merging with the ABI Investment Affairs unit also enthuses few arguing for greater transparency. Although a positive spin has been put on this move by Mr Godfrey there is a danger that this merger could strengthen the hand of an already mighty (and mighty wealthy) industry which is apparently charging on average 58 per cent more than their US equivalents.
Many in the industry are now openly declaring that the whole system is a mess and that the FCA must mandate investment management disclosure requirements sooner rather than later. Will this go further than OCF to demand full Total Cost of Ownership figure for all funds? No one is telling us.
However it is clear that fund charges transparency is going to be one of the FCA’s most significant challenges in the next couple of years. And if current resistance is anything to go by, it may well take longer than two more years to deliver it.
Natanje Holt is managing director of Dunstan Thomas
