Asset managers should explain fee structures, disclose investment research paid for through dealing commissions and put client interests ahead of their own, according to a new statement of principles from the Investment Association.
The document, sent out to all member firms today has a list of 10 objectives, designed to clarify industry best practice in areas where there has been regulatory or social scrutiny in recent years.
The trade group will maintain a list of signatories on its website from 31 July 2015, showing those firms which have signed up to the set of principles.
In a statement, Helena Morrissey, chairperson of The Investment Association, said: “Investment managers…need to demonstrate clearly that they have an obsession with high standards of integrity and competence. These principles go further than regulation to fulfil these requirements.
“Adherence to the principles will ensure that clients can be confident in their investment managers’ integrity and approach to delivering on the objectives they have agreed.”
Today’s statement is further evidence of how trade bodies are attempting to stem the tide of new regulations by encouraging their members to be more proactive in shaping their own best practice in how they treat customers.
The set of principles outlined comes a month after a Liquidnet survey revealed 72% of firms in the EMEA region were concerned about the Financial Conduct Authority’s proposed changes to the way research is paid for.
Furthermore, only 4% believed that the forthcoming changes under the Markets in Financial Instruments Directive II (MIFID II) would have a positive impact.
Commenting on today’s set of principles, Daniel Godfrey, chief executive added: “The Investment Association’s purpose is to work with our members to make investment better for clients, for companies and for the economy. This statement of principles is a key step towards that goal.”