Investment Association supports meaningful costs and charges disclosure
The Investment Association today welcomed the publication of draft EU rules for presenting key information about investment products to consumers. European regulators have raised a range of important matters which will require further consideration, but we believe the proposals on costs and charges disclosure are a step in the right direction.
Jonathan Lipkin, Director of Public Policy at the Investment Association, said:
"European regulators are right to propose separating transaction costs and product charges in the new Key Information Document (KID). We have consistently argued that this is a pre-requisite for meaningful disclosure, and is clearly in the interests of consumers. It will ensure that charges paid to investment product providers are visible in the context of the investment decisions they make on behalf of their clients.
"Although the KID is of course wider in scope than investment funds, we consider that the 'ongoing charges figure' (OCF) is a valuable piece of information and we will continue to encourage the European regulators to retain the OCF as a key part of disclosure."
