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|
|Tereza Fritz||The Financial Services Consumer Panel*|
|David Hare||Chair, Phoenix Life IGC|
|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.
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