IDWG update on cost disclosure work

The Institutional Disclosure Working Group (IDWG) has provided an update on its progress on the consistent and standardised disclosure of cost and charges to institutional investors.

IDWG chair, Dr Chris Sier, commented: “Our group is making progress towards improving clarity of charges for investors, and we’re determined to keep up the momentum. Views and feedback from others have given us a lot to consider. Next steps will involve further refining our proposal for a template in light of the feedback we have received. The agreed template will help firms present costs and charges in a consistent and standard way. We plan to present this to the FCA as soon as possible so that it can be adopted by the market and investors can benefit from the increased transparency it will provide.”

PLSA external affairs director, Graham Vidler, commented: “We want to see an institutional investment market that works efficiently, competitively and in the best interests of scheme members. A cornerstone of any well-functioning market is transparency. This is why we support the excellent work being done by the IDWG which is taking a rigorous approach to defining, surfacing, and measuring the full cost of investing.” Vidler stressed that the group wants to make sure that it produces usable information, which will help trustees understand and manage their costs, via a template which means firms present costs in a consistent and standard way.