AIC welcomes Ros Altmann’s private members’ bill on costs

The AIC has welcomed Baroness Ros Altmann’s intervention in the debate about the disclosure of investment company costs.

Listing image

The Association of Investment Companies (AIC) has welcomed Baroness Ros Altmann’s intervention in the debate about the disclosure of investment company costs. Baroness Altmann’s private members’ bill aims to remove investment companies from the scope of the Alternative Investment Fund Managers Directive (AIFMD).

Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “We welcome Ros Altmann’s bill which is set to accelerate action on this crucial issue of investment company cost disclosure. Whilst AIFMD has a broader sweep, this bill provides a way to speed up the process of getting the issue of cost disclosures resolved and reaching a better place for investors and our members. We have been working hard lobbying the FCA and other policymakers on this issue and have called for emergency action as well as a root and branch review of cost disclosure.”

AIC’s cost disclosure proposal

The AIC’s cost disclosure proposal is that platforms, wealth managers and advisers should disclose the ongoing charge to retail clients. The ongoing charge comprises the management fee and other ongoing costs such as directors’ fees and accounting fees. The investment company in its own cost disclosure (the successor to the Key Information Document) would disclose the ongoing charge as well as separately disclosing transaction costs, any performance fee and gearing costs. Where the investment company is held by another investment company or fund, its costs would not be included in that fund’s own cost disclosure.

For more detail on the AIC’s cost disclosure proposal, see this update.

- ENDS -


Follow us on X @AICPRESS

Notes to editors

  1. The AIC has long campaigned for the abolition of Key Information Documents (KIDs). Please see our releases and papers on this topic: AIC calls for KIDs to be suspended, Burn before reading – paper, Burn before reading – blog, AIC welcomes delay to proposed changes to Key Information Documents (KIDs) and Goodbye Mr PRIIPs.
  2. The Association of Investment Companies (AIC) represents a broad range of closed-ended investment companies, incorporating investment trusts and other closed-ended investment companies and VCTs. The AIC’s members believe that the industry is best served if it is united and speaks with one voice. The AIC’s vision is for investment companies to be understood and considered by every investor. The AIC has 345 members and the industry has total assets of approximately £262 billion.
  3. Disclaimer: The information contained in this press release does not constitute investment advice or personal recommendation and it is not an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investment company shares, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all.
  4. To stop receiving AIC press releases, please contact the communications team.