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Speaking at a recent industry event, Helena Morrissey, chair of the Investment Association, admitted that member firms needed to do more to make the disclosure of costs more user-friendly or risk having measures imposed on them by the regulator.
“I come with a very clear message: The Investment Association is 100% committed to transparency of investment costs and to complete disclosure,” Morrissey told delegates at a symposium organised by the Transparency Task Force.
She was responding to the event’s theme of feedback on and discussion of the FCA’s Asset Management Market Study, published a month ago.
The wide-ranging report criticised the asset management industry’s “weak” competition and poor transparency.
The Investment Association is working on a standard method of cost disclosure, which was recognised in the FCA’s report, along with its own suggestions for improvements.
However, the regulator also said: “If we find industry-led initiatives are not likely to be successful or sufficiently comprehensive, we will consider the need for further regulatory intervention.”
The Investment Association – previously the Investment Management Association – has been grappling with the issue of cost disclosure for several years, with previous leaderships taking strikingly different stances.
Asked whether asset management firms were now more willing to support transparency measures, Morrissey said: “When I became chair, I felt the majority of people I talked to were waiting for regulation and were reluctant [to act].
“Now the majority feel they want to make sure our industry is in the right place, has the trust of the public and is well respected. A lot of that comes down to attracting talent that really recognises that we do something socially useful.”