Warning new MiFID II fund transaction cost methodology will 'mislead' investors as asset managers come under fire

Concerns over 'damaging' new system

Concerns have been raised that the "damaging" new methodology used for calculating fund transaction costs under MiFID II, which is already throwing up a number of anomalies including negative figures, could undermine efforts to improve transparency.

MiFID II, which came into force at the start of January, requires investment managers to disclose additional transaction costs that are charged to their funds, on top of the established ongoing charges figure (OCF). Transparency Taskforce calls for IA's Cummings to apologise over 'offensive' Loch Ness fees comments This has led to criticism of asset managers as, according to recent research by the lang cat, the actual cost of ownership of some of the UK's most popular funds is on average 30% above previously disclosed OCFs and as high as 85% (once transaction costs are taken into acco...