FCA publishes occasional paper on fund charges

Introduction of all-in-fee

The Financial Conduct Authority (FCA) has published an occasional paper on the back of its Asset Management Market Study assessing the best ways to present charges information to investors, after its AMMS found that some charges are not always visible to retail investors and, when they were, investors might not pay sufficient attention to charges or understand their impact on investment returns.

Now you see it: drawing attention to charges in the asset management industry experimented with a simulated online platform with more than 1,000 non-advised investors to test the impact of four ways of presenting charges. Cultural shift needed as asset managers at 'inflection point' The FCA said while previous research had suggested disclosure can have a limited impact on consumers' decision making, its study showed "a number of behaviourally informed treatments can impact investors fund choices and, in some cases, their understanding of charges".  It added: "Importantly, we found ...