U.K. money managers would be required to provide semiannual detailed reports of costs to plan trustees, according to a draft code of disclosure announced today by the U.K. National Association of Pension Funds and the Investment Managers Association. This disclosure would include details on fund management fees, all bank charges, taxes, custody costs and commissions paid. Managers also would have to provide details of their policies on dealing methods, broker selection, market impact, foreign exchange and soft commissions. The disclosure will have to be made only to trustees of U.K. pension plans, but plan trustees in other countries may begin requesting similar details from their money managers, said Lindsay Tomlinson, IMA chairman.
IMA and NAPF members have until the end of this month to respond to the draft, with full implementation planned for March 2003, said Mr. Tomlinson.
The code follows recommendations made last year in the Myners report that money managers give details of transaction and commission costs to their U.K. pension clients.