In order to deliver the enhanced disclosure of investment costs and charges under forthcoming European and UK requirements, the Investment Association has created a number of technical working groups charged with solving implementation issues for cost and charge disclosure under the new regulations. These cover a number of areas, notably product charge disclosure, transaction costs incurred in the investment process, best execution reporting and use of dealing commission.

Above these groups will sit an Independent Advisory Board whose role will be to provide a consultation and oversight function to advise the IA such that the IA can steer the work of the technical groups in a direction that delivers an output that satisfies client expectations.

The terms of reference for the Independent Advisory Board are as follows:

  • To review the outputs of the technical working groups in order to advise the IA as to whether they meet client expectations.
  • To advise on the form and content of disclosure to UK pension scheme trustees and IGCs.
  • To challenge The Investment Association where the Independent Advisory Board feels that the output could be enhanced, whether in terms of scope or quality of outputs.

At the conclusion of the process, the Independent Advisory Board has the right and expects to produce an independent report on the IA draft code, providing Board views on the code itself and the process of producing it.

Following the production of the IA draft code, the IA will discuss with the Independent Advisory Board the possibility of establishing a more permanent oversight body to provide ongoing input and feedback on the subsequent use of and compliance with the code.