‘Radical’ change demanded of fund charging practices

Mr Godfrey (pictured) added that the FSCP’s single-charge proposal was a “perfectly valid suggestion to make” and that it could work for many funds. But forcing all funds to estimate trading costs – and charge for them – in advance could give rise to a serious conflict of interest if a fund was to run out of the money needed to pay for investment trades that would be of benefit to investors.

“Any discussion of transaction costs that doesn’t take into account performance cannot be relevant,” he added.