The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Best practice: Disclose and explain

A CULTURE OF TRANSPARENCY What information do fund managers need to disclose to their clients about how their portfolios are managed? CFA's John Barrass reports on an issue troubling regulators.

This article appears courtesy of Global Investor.

You get what you pay for is one of those unhelpful adages that is usually only employed when what you pay for is a disappointment. It can also be manifestly untrue. The intricacies of modern commerce can shield any number of material facts on how business is conducted on your behalf: how do you know what you're paying for? Your chief interest may be in the outcome of the transaction rather than the processes that led to it, but do you really know how your money is being spent?

The first years of this century saw what was arguably a breakdown in trust between investors and their professional advisers. A succession of high-profile market scandals in the US led regulators to place a renewed focus on how and where investors' money was spent. Much of this effort went into assessing  what constituted acceptable management fees and investment costs.

In the UK, the Financial Services Authority tried to unravel commission structures and enhance disclosure standards for bundled brokerage costs and so-called soft commissions - those where no money changes hands, but services are provided instead.The

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree