IA proposes single fund charge plus transaction estimate; Calls for easier share class shift

Response to last year's interim Market Study

The Investment Association (IA) has backed proposals to make it easier for fund managers to move investors into better value share classes, while proposing a single fund charge to sit alongside an estimate of transaction costs, in its response to the regulator's interim Asset Management Market Study.

The IA, led by chief executive Chris Cummings (pictured) said regulatory changes to the barriers for switching fund share classes, as mentioned in the Financial Conduct Authority's Interim Report, is "particularly necessary", and said there are several areas in which the regulator could facilitate fund mergers and closures, as well as arguing for a sunset clause on trail commission to UK financial advisers. Meanwhile, in response to the regulator's proposal for an 'all in' fund management fee as one method of improving "weak price competition" in the industry, the IA proposed an alternat...