MPs are calling for further pressure to be placed on pension fund managers to reveal the full extent of their charges on investors.
Conservative MPs David Mowat and Nigel Evans are among the signatories of a letter to accountancy watchdog the Financial Reporting Council (FRC) calling for full disclosure on charges, the Financial Times reports.
Transaction costs are among the charges managers "omit", according to the letter.
The paper reports MPs are particularly worried about four types of charges: profits taken by traders; transaction costs on underlying funds; profits made when funds lend stock; and interest retained by fund managers on cash balances.
Such hidden costs may prompt some savers to opt out of workplace schemes into which they have been automatically enrolled, the MPs warn. Pensions minister Steve Webb has proposed a 0.75% cap on auto-enrolment fees.
The FT reports the letter calls for the FRC "to ensure that the accounting standards employed by fund managers are accurate and fair".
"A . . . regime that claims to disclose transaction costs but omits major types of transaction cost does not meet these requirements."
Hires Wellington Management
Introduces 'The Long Dog'
Continuing Square Mile’s series of informal interviews
Happy GDPR day