BBC Radio 4 statement
5th August 2013
Commenting on BBC Radio 4′s ‘How You Pay for the City’ programme, aired on Sunday 3 August 2013, (http://www.bbc.co.uk/programmes/b037r5dh) Gina Miller, founder of The True and Fair Campaign stated:
“BBC Radio 4′s ‘How You Pay for the City’ programme, aired on Sunday, is a damning indictment of the complex fee charges and lack of transparency that exists in the fund management industry. The IMA’s claim, on the programme, that the industry is working to find a way to report fund fees and charges via a single pounds and pence figure for ‘historic costs’ is blatantly misleading.
IMA CEO Daniel Godfrey admitted on the programme that ‘it’s very difficult for a reasonable investor to pick through all of it [the information] to find all the pieces’ and stated that the IMA was working on a ‘proposal’ to provide a single figure ‘in pounds and pence’ to show historic costs for investment funds.”
Posted By: True and Fair, 2:17 pm
“The IMA’s proposals (http://www.investmentfunds.org.uk/policy-and-publications/sorp-2013/) for a statement of Recommended Practice (SORP) fail to do as promised, the SORP does not include implicit dealing costs associated with the difference between the price at which the fund manager actually buys and sells the underlying securities and fails to give savers a full breakdown of all the costs and fees they will pay via one single pounds and pence figure, before they buy an investment product.
“The industry has repeatedly shown itself to be unwilling to disclose the full cost that savers pay for investment funds and it is shocking that the IMA, rather than a genuinely independent body, has been allowed by the Financial Reporting Council (‘FRC’) to create its own dismal accounting standards.
“We urge politicians to step-in and regulate to ensure full disclosure of all costs and fees and end this opaque charade.”