Significant disclosure 'still lacking'
Managers are transitioning to the new Financial Markets Conduct and the FMA released a guidance note in May on how they should manage their fee disclosure requirements.
But adviser Brent Sheather said despite the move to a new, standardised product disclosure statement, which includes more explicit detail about typical fees charged to investors, there were still significant costs not being disclosed.
He said a key one was the brokerage fee paid to stockbrokers to trade portfolios
“It is standard practice in NZ and overseas to leave these costs out when calculating the fee structure of the fund. Furthermore some fund managers include these costs when producing the Statement of Comprehensive Income and others don't,” he said.
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