Irish central bank calls for EU fee disclosure

A Europe-wide review of investment fees is needed to ensure managers are not misleading their investors, according to the Central Bank of Ireland.

The bank, which has recently completed an investigation into fee disclosure across public and private funds, has asked the European Securities and Markets Authority to assess whether fund changes across the bloc are fit for purpose.

The CBI study found a number of managers were charging “unjustifiably high” fees and providing “confusing customer information” that made it difficult for investors to compare funds.

ESMA has started to look at fund fees, while the European Commission also launched a study on fund fees and investment performance earlier in the year. The findings are expected to be published at the end of 2017.

The CBI is one of a number of national entities to look into fees and charges over the past 12 months. The UK’s Financial Conduct Authority recently published the results of its asset management study along with a recommendation that all asset managers, including private equity firms, use a standardized template to report fees to investors.