Executive Summary

This event is inspired by the idea that despite ten years or more of activity around the issue of costs and charges in the pensions and investments space, we are still a long way away from investors – both institutional and retail, having access to the clear and intelligible information they need. 

Without suitable information on costs and charges, it is not possible to make sufficiently informed decisions; and the bottom line is that opacity on costs and charges continues to drive out sub-optimal outcomes. Ultimately, this means poorer returns than might otherwise might be the case. 

Our message is not that minimum costs are best – there are many reasons why the cheapest option may not be the best option. 

Our message is that clients deserve to know what the costs are so that options can be considered and benchmarked, properly weighed up informed decisions can be made. 

Why is it taking the pensions and investments sector so long to get something as fundamental as proper costs disclosure to happen?

The Regulators, trade bodies and professional associations have understood the importance of costs disclosure in having a transparent, efficient and fair market for ten years or more. 

So why aren’t we there yet?

If, like us, you want real and meaningful improvements to the way the financial system operates, get involved. 

Our event is one more step forward in galvanising support for the positive, progressive and purposeful finance reform that is desperately needed.

We’ll be considering a range of questions such as: 

• Are asset managers finding ways to evade transparency under MIFID II and PRIIPs; and if so, is that unprofessional “opportunistic opacity” on their part; or a necessary, innocent and pragmatic response to the shortcomings of the regulations?
• Are any organisations failing to comply with the rules that are already in place; if so, which ones?
• Where has the Cost Transparency Initiative got to? – is it stuck in the long grass?
• Are retail investors getting the clear and intelligible information they need and deserve? If not, what (or perhaps even who?) is preventing that from happening?
• What are the Trade Bodies and Professional Associations doing to protect the interests of consumers in relation to costs/charges? – is there a tension between them doing that effectively whilst also caring for the commercial interests of their members?
• Is it safe to assume that the costs data disclosed is going to be accurate; or should there be independent data verification?
• Will we ever get to “one single figure” to represent costs? – could we ever have “one single figure” to represent value for money?
• Are we there yet on costs and charges transparency? If not, why not? – Who/what is stopping it from happenning?
• Are performance fee arrangements gaining traction because they better-align with clients’ interests and can claim they deliver superior value for money?

• Is the Ad Valorem fee model becoming obsolete?
• Do Performance Fees truly reward performance?
• …and more