TheWealthNet – ‘The Investment Management Association: A conspiracy against the public interest’

Gina Miller of the True and Fair Campaign comments that: “Every time an individual or organisation dares to question the lack of honesty and transparency of the investment industry with regards to fees, two words are muttered by the IMA “irresponsible scaremongering.”

 

“Until the IMA learns to stop starring in a “Carry on Fudging” farce, then it deserves to be treated with the same contempt as the British Bankers Association following the LIBOR scandal. Both have shown the pitfalls of UK regulators allowing self-interested, unscrupulous trade bodies to set the rules. British savers and investors deserve better, nothing less than full transparency on all costs and fees is acceptable.”

 

The True and Fair Campaign outlines the following 10 questions that investors and journalists should be asking the IMA at it’s investment fund’s charges forum:

 

  • Why does the IMA believe a voluntary code can ever work when its own members have ignored its chief executive’s recommendations on disclosure of costs for nearly three years?
  • What is stopping IMA members being highly selective when choosing funds to disclose costs for?
  • When does the IMA think its members might start following its latest proposals?
  • Why does the IMA still recommend its members show only half the dealing costs, according to SCM and Morningstar analysis?
  • Why should anyone trust the IMA re costs when it has demonstrated since 2009 that it does not understand fund costs?
  • Why does the IMA repeatedly uses flawed or biased research to try to prove dealing costs do not exist?
  • Does the IMA realise its new voluntary code when applied to the £121 billion invested in IMA bond funds will be totally misleading to investors within these funds?
  • Why does the IMA support the ‘hide and seek’ method of disclosure?
  • Has the IMA ever researched the direct correlation between level of fund turnover and performance?
  • Is the IMA’s damascene conversion to transparency simply trying to dissuade European MEP’s from voting in September 2012 for a European wide adoption of the True and Fair code and principles?

Read the full article on The Wealth Net website. (N.B. a free subscription is required).

Posted By: True and Fair, 10:05 am

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