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30.01.2018 13:02 Age: 294 days
Category: News

MiFID II Reveals Loch Ness Fees


In 2016 the Investment Association (IA), a UK-based organisation representing investment managers, published a report that dismisses claims that there are or were hidden fees charged to investors in financial products, in particular related to mutual funds. Renamed ‘The Loch Ness monster of investments’, the study indicates that all charges applied to investors are clearly indicated in the annual report of the funds, signaling that those who have raised such claims ‘fail to identify conclusive signs of their [hidden costs’] existence’, according to the FT (here). 

Well, MiFID II lured Nessie out of hiding as fund managers were forced to start disclosing more information on ongoing fees that are not applied directly by them, but which eat into investors’ returns, such as transaction fees for stockbrokers (here), 'bank set-up costs’ or ‘tax advice fees’ (here). Following this revelation, Andy Agathangelou of the UK Transparency Task Force (TTF), an independent organization ensuring transparency in the finance industry, addressed a letter to the chief of IA (in which he copied the British Prime-Minister and the head of the UK FCA) publicly requesting him to apologise to investors.

Three consumer side heroes are introduced by the FT: Andy Agathangelou, Chris Sier and Gina Miller. All three have advocated against hidden costs that impact the real return of investment products for a while now, which the industry has continuously denied. Whether these costs are comprehensible to the common retail investor or not is of no consequence to these heroes, as it has now become clear where these higher costs (up to four times what was reported, see here) incurred by retail investors come from.

BETTER FINANCE strongly supports Andy Agathangelou and the TTF’s ongoing efforts.

Read here:

FT articles: 

The Telegraph:

The IA’s study:


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