Press Release: True and Fair Campaign update – major breakthrough in Europe
The True and Fair Campaign ( www.trueandfaircampaign.com ) launched by SCM Private in February 2012 calling for a new Code of Conduct that would give consumers 100% transparency on all costs and management fees and full disclosure on where funds are invested, has received resounding support in Europe.
Gina Miller, spearheading the Campaign, said, “We are absolutely delighted that MEPs have made amendments to the MIFID II directive . This is a clear indication from Europe that 3 they are seeking higher standards of investor protection such as those embodied in our True and Fair Code, but sadly this is not being echoed by UK fund managers, regulators and associations who are still dragging their feet.”
The key amendments to the MIFID II proposal are:
• A new “Total Provider Cost” whereby fund managers would reveal all the costs, including other previously ‘hidden/obscured’ items e.g. performance fees, dealing costs and the total costs of all underlying funds via one easy percentage number on a per annum basis.
• A new “Total Cost of Investment” whereby all distributors of funds would need to reveal all the costs as above but also any additional platform fees, entry/exit costs or any other costs calculated via one easy to understand percentage number on a per annum basis.
• All holdings within any fund to be revealed in full at least quarterly subject to a maximum delay of 60 days.
Gina Miller concludes, “For too long British consumers have been comprehensively misled by the UK investment management and savings industry. I hope that these initial steps taken by MEPs will become legislation and thereby force the pace of change within the industry.”.
Posted By: True and Fair, 12:17 pm