Members of the Investment Association have signed up to a Statement of Principles designed to ensure asset managers behave in the best interests of customers.
The IA’s Statement of Principles has signatories from 25 of the country’s largest asset managers including BlackRock Investment Management, Henderson Global Investors and Vanguard Asset Management.
Companies signing the pledge have made a specific commitment to making costs and charges as transparent and understandable as possible – including trading costs and have agreed to put clients’ interests before their own.
Daniel Godfrey, chief executive of the Investment Association, said: “Those who have committed to the Principles so far manage from under £50 million to more than £750 billion.
“Some are foreign owned, others UK. Some are insurance company or bank-owned, some are independent. But what brings them all together is the depth of their commitment to their customers.”
The 10 point commitment is as follows:
1 – Always put their clients’ interests first and ahead of their own
2 – Take care of clients’ money as diligently as they would their own
3 – Only develop, offer and maintain funds and services designed to add value for clients and help them achieve their financial goals
4 – Maintain and apply the investment and operational expertise needed to meet the objectives agreed with clients
5 – Make all costs and charges transparent and understandable
6 – Disclose to investors the source and value of any other material benefit they receive as a consequence of their role as investment manager
7 – Ensure regular, timely and clear lines of communication with client
8 – Set out clearly their approach to the stewardship of client assets and interests
9 – Maintain a corporate culture that sustains these principles
10 – Work with industry colleagues and stakeholders to develop and maintain guidance on industry best practice