Fund managers await clarity on cost disclosure rules

European rules requiring greater disclosure of portfolio costs could apply to fund managers sooner than expected if regulators decide to clear up inconsistencies in existing sets of proposals.

As it stands, the second Markets in Financial Instruments Directive (MiFID II) from the European Securities and Markets Authority (ESMA) will require investment firms to disclose all costs, ranging from ongoing charges to research fees and detailed transaction costs, as of 3 January 2017. These proposals were first announced early last year, and then confirmed in final technical advice released last December. MiFID II requirements themselves do not currently apply to UCITS funds, with greater cost disclosure for these products only scheduled to be implemented at the end of 2019, via t...