Fee guidance doesn't answer all questions
Fund managers have to offer investors fee information in their funds' product disclosure statements and in their ongoing quarterly fund updates.
Fees that must be disclosed include management and administration charges, performance fees and the fees of any underlying funds the fund manager invests in. If they cannot get an accurate representation of the underlying funds' fees, they need to be able to explain why not.
This is designed to give investors a clear view of the total fees involved with the fund structure.
But the Financial Markets Authority said the definition of an underlying fund was broad.
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
![[The Wrap] What the heck is happening at the FMA?](https://goodreturns.publit.io/file/c_fill,w_300,h_200/a6c3bc06-6401-44de-96e2-286c090e132d.jpg)