A landmark day for financial transparency

Posted by Robin Powell on September 9, 2016

These are exciting timing for those of us campaigning for greater transparency in asset management. Hardly a week goes by without a positive development on this issue somewhere in the world.

But this coming Monday, 12th September, will see perhaps the biggest milestone yet — the world’s first Transparency Strategy Summit, to be at the House of Commons in Westminster.

Co-chaired by Tom Tugendhat MP and by Andy Agathangelou, the founder of the Transparency Task Force, it will bring together almost all of the major players in the UK pensions industry, including The Department for Work & Pensions, The Financial Conduct Authority, The Pensions Regulator, The Advertising Standards Authority and The Pensions Advisory Service.

The primary purpose of the summit is “to begin to build consensus on the best way to protect the interests of the UK’s pensions-saving public through full disclosure on all the costs and charges they are paying but not being told about.”

 

Speaking ahead of this momentous event, Tom Tugendhat MP said this:

“I am a strong supporter of free markets and competition, that’s why I am a Conservative.  I do not object to companies charging a fee for the services they offer. I don’t mind if the fees vary wildly; that is not my business, as long as they’re made clear to the consumer. But in the pensions and investment sector they aren’t and that’s a problem.

“Transaction costs, on-going charges, management fees and exit costs tend to be hidden, included in the fund or not clearly advertised. Hidden fees make proper comparison, and therefore competition, impossible. That’s just not right, whether you look at it from a market efficiency or a social justice point of view.

 

 

“Our Transparency Strategy Summit on pensions is a sensible first step in building consensus on how to move towards pragmatic and consumer-centric solutions that are a win/ win/ win; for the consumer, for the efficacy of government policy and for all right-minded market participants.

“Hidden fees in pensions is a substantial public-interest issue now and we really mustn’t under-estimate the size of the prize, because in our post-Brexit world the UK has every reason to want to be the world-leader in financial services transparency. Business and investors like transparency, so if we’re the very first country to get this right it will be highly beneficial for UK Plc.”

 

 

Andy Agathangelou added:

“The range of attendees at the Summit shows there’s a broad coalition of interests coalescing around the idea that there ought to be full disclosure on the costs and charges across all savings and investment products, starting with pensions. Progress begins with realism, so we need to admit there’s an opacity problem and accept collective responsibility for helping to solve it.

 

 

“We’ll be discussing the key issues in a candid, constructive and collegiate manner, building consensus and helping to drive forward the change that the sector needs and the public deserves.”

 

Stand by for an update on TEBI next week.

 

Related videos:

David Pitt-Watson: Transparency is a battle we will win

Tom Tugendhat MP: Asset management fees are a stealth tax on all of us

Andy Agathangelou on the campaign for transparency in asset management

Robin Powell

Robin is a journalist and campaigner for positive change in global investing. He runs Regis Media, a niche provider of content marketing for financial advice firms with an evidence-based investment philosophy. He also works as a consultant to other disruptive firms in the investing sector.

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