The FCA welcomes the announcement by the Cost Transparency Initiative (CTI) officially launching finalised and industry-ready templates for the disclosure of costs and charges to institutional investors.
The new templates can now be used by institutional investors to access and assess critical information on costs. This gives investors clear expectations for standardised disclosure and should allow comparison of charges between providers.
Christopher Woolard, Executive Director of Strategy and Competition at the FCA commented:
'This was a key remedy of the FCA’s asset management market study and is a positive final step completing the work of the Institutional Disclosure Working Group (IDWG). Institutional investors are now provided with the tools to give them a clearer and more detailed understanding of the charges of their investments. It is good to see investors working with industry to design a framework that can be a success for all.
'We are keen to see the positive momentum on greater transparency continue. We will be watching to see asset manager and service provider uptake which should ultimately lead to better investor outcomes. We are also pleased with the CTI’s ambition and welcome their intention to extend the standards into asset classes and service types not yet tackled. We would like to thank all of those who have participated in the Initiative to get it to the point of launch.'
The FCA continues in its role as an observer on the CTI Board. We will reconsider the issue of disclosure to institutional investors in the future if we have any reason to be concerned about the effectiveness of the CTI.
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