Published: 19th November 2018

The Cost Transparency Initiative (“CTI”) was launched on 7 November 2018.

The CTI is an independent group aiming to improve cost transparency for institutional investors with the responsibility for progressing the work already undertaken by the Institutional Disclosure Working Group (“IDWG”) which was set up by the FCA as part of its Asset Management Market Study.

The CTI is supported by Pensions and Lifetime Savings Association, Investment Association and Local Government Pension Scheme Advisory Board and was recommended as part of the IDWG’s report to the FCA on 15 June 2018.

The FCA has stated that the main focus of the IDWG was on the provision of helpful information to assist institutional investors by detailing what costs they are paying. It has not focused specifically on creating a method of delivering compliance with MiFID and other requirements. However, the IDWG templates have been designed to be aligned with the relevant disclosure obligations in MiFID II. So, while firms must continue to ensure that they individually meet all relevant regulatory requirements, if these templates are completed in a comprehensive and accurate way, including all costs and associated charges, the information in the templates should assist firms in meeting those requirements.

Details of the IDWG can be found at the following FCA link:

https://www.fca.org.uk/firms/institutional-disclosure-working-group

Details of the CTI, and relevant templates, can be found at the CTI link:

https://www.plsa.co.uk/Policy-and-Research-Investment-Cost-Transparency-Initiative

 

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