MiFID II disclosure highlights reality of fund charges

Intensifies feeling of 'grubbiness' - the lang cat

Victoria McKeever
clock • 3 min read

Investors are paying almost a third (30%) more in transaction costs on average than had previously been disclosed to them, research from the lang cat has found.

On the back of disclosure requirements under the updated Markets in Financial Instruments Directive (MiFID II), the lang cat conducted research into the top-selling 20 funds of 2016. It found investors in 13 funds were paying on average nearly a third (30%), and as much as 85%, more in additional transaction fees than had previously been disclosed to them. Effective from the start of 2018, MiFID II has required investment managers to disclose additional transaction costs that are charged to their funds on top of the published ongoing charges figure (OCF). Seven of the top 20 funds ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Pensions tax breaks: Budget 'kite-flying' creating cash management challenge

Pensions tax breaks: Budget 'kite-flying' creating cash management challenge

Savers and advisers dealing with cash management quandary

Kate Toumazi
clock 14 October 2025 • 3 min read
Partner Insight: Finding the right partner for a managed portfolio service

Partner Insight: Finding the right partner for a managed portfolio service

Francis Clark Financial Planning set up a white-label managed portfolio service for their clients, but as the effects of COVID-19 played out and markets stagnated, they realised they needed a change. Managing Director Chris Reah explains how they found the right solution.

Chris Reah, Francis Clark Financial Planning
clock 13 October 2025 • 5 min read
Watch Professional Adviser's Working Lunch with Baillie Gifford - Decumulation Decisions: Resilient Monthly Income for Retirees

Watch Professional Adviser's Working Lunch with Baillie Gifford - Decumulation Decisions: Resilient Monthly Income for Retirees

Catch up on the discussion

Professional Adviser
clock 10 October 2025 • 1 min read