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Independent panel to advise IA on next-generation disclosure for investment costs

Monday 4 July 2016

The Investment Association’s plan to create a next-generation disclosure framework for investment costs has taken a major step forward with the appointment of an independent Advisory Board.

Chaired by NEST Chief Investment Officer Mark Fawcett, the Board includes other senior figures from the pensions world as well as representatives from the Financial Services Consumer Panel, Transparency Task Force and Local Government Association.

The Board will ensure the project delivers on its aim to create a standardised, fully Comprehensive Disclosure Code for asset managers to disclose investment costs.

This will create a next-generation Disclosure Code for the costs of running the investment ‘engine’ inside savings products such as pensions. This ambition is in line with both new regulatory requirements and wider client expectations of greater transparency and accountability.

The project focuses solely on the costs of the investment engine and will complement efforts by others in the delivery chain, including pension schemes, wealth managers, platforms and advisers, to make all costs clearer to consumers.

The Disclosure Code will also provide a scheme for disclosure that will enable asset managers to be fully compliant with both UK and EU regulation.

Work is already progressing, with a range of technical working groups convened within the industry.

Mark Fawcett, Chair of the Disclosure Code Advisory Board, said:

“This initiative has the potential to help the investment and pension industry take significant steps towards greater transparency of investment transaction costs.

"It's vital that as an industry we're able to create a consistent disclosure framework if we're to make progress reaching this goal.

"I look forward to collaborating with a talented team to shape a comprehensive disclosure code.”

Jonathan Lipkin, Director of Public Policy at the Investment Association, said:

“In line with previous commitments, we are building a framework that can provide consistent and complete information about charges and transaction costs. With the formation of such an expert and experienced Advisory Board, we are taking a further step forwards.

"Now more than ever, it is vital that savers and those who make investment decisions on their behalf have full confidence in the pensions and investment management industries. All parts of the delivery chain need to be clear and transparent. The new IA Disclosure Code will achieve that objective for the investment ‘engine’."

The Disclosure Code Advisory Board

Mark Fawcett (Chair) NEST
Andy Agathangelou The Transparency Task Force
Yvonne Braun The ABI
Richard Butcher PTL
Tereza Fritz The Financial Services Consumer Panel*
David Hare Chair, Phoenix Life IGC
Chris Hitchen RPMI
Jeff Houston The Local Government Association
Thomas Mercier PLSA DB Council
Alex Pocock The Society of Pension Professionals (SPP)
Graham Vidler The PLSA
David Will The Society of Pension Professionals (SPP)

*The Financial Services Consumer Panel will be joining the Advisory Board as an expert contributor


Notes to Editors

The Investment Association announced that it had begun work on the next-generation Disclosure Code on 29 February 2016, with the establishment of a Working Group of technical experts from its member firms.

For further information please contact:

John Kenchington
Director of Communications
M 07834 089 332

Linsey White
Head of Media Relations
T 020 7269 4635
M 07508 724 022

Alex Hogan

Press and Digital Media Officer
T 020 7269 4620
M 07508 724 066

About the Investment Association:

  • The Investment Association is the trade body that represents UK investment managers who manage over £5.5 trillion on behalf of clients.
  • Our purpose is to ensure investment managers are in the best possible position to:
    • Build people’s resilience to financial adversity
    • Help people achieve their financial aspirations
    • Enable people to maintain a decent standard of living as they grow older
    • Contribute to economic growth through the efficient allocation of capital
  • The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.
  • The UK is the second largest investment management centre in the world, after the US and manages 37% of all assets managed in Europe.