Ten UK pension schemes representing more than 19m members are supporting the use of new standards for asset managers which will increase transparency in the industry.
These pension funds, which include master trusts Nest and The People’s Pension, have written a joint letter publicly endorsing the Cost Transparency Initiative.
The schemes stated that “greater cost transparency will help everyone achieve a better income in retirement”.
Launched in November, the CTI was tasked with implementing, promoting and encouraging the use of the new cost transparency standardised templates prescribed by the Financial Conduct Authority’s Institutional Disclosure Working Group.
In May, the CTI released templates and guidance aimed at asset managers, and other suppliers of services to pension schemes, which can be used to produce standardised cost and charges information.
This framework will allow pension scheme trustees to make clear cost comparisons across different investment platforms, enabling them to challenge asset managers on cost and performance to get better value for their clients.
The CTI expects asset managers to be in a position to report against December 2019 and April 2020 year-ends using the new templates and tools.
In the letter, the schemes stated that they support the approach taken by CTI to create a new industry standard for institutional investment cost data, and the fact that the templates are open source and free to download.
If needed, the pension funds would also support further development of guidance for asset managers on how to provide cost information to their clients, and for investors on how to make best use of this new industry standard.
Mel Duffield, CTI’s chairwoman, said: “We will be working across the industry to encourage adoption, and will be working with schemes and providers to showcase just how important these standards can be for them, and indeed for the millions of savers who will ultimately see the benefits of greater cost transparency.”
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