Lord Mendelsohn – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Lord Mendelsohn on 2016-05-23.

To ask Her Majesty’s Government whether it is their policy that entertainment expenses either given or received by individuals in fund management companies and their clients and suppliers should be disclosed, and whether they will encourage pension trustees to require such disclosures in their management contracts.

Lord O’Neill of Gatley

The Government is committed to the principle that people should have access to appropriate and accessible investment options and understand the charges that they face.

The Financial Conduct Authority (FCA) is currently conducting a market study into asset management. We await the FCA’s assessment of disclosure of costs and fees in fund management reporting, where these issues fall under the scope of the market study. The FCA expect to publish an interim report in summer 2016 and a final report in early 2017.

With respect to the disclosure requirements imposed on pension trustees, the Department for Work and Pensions and the FCA jointly undertook a Call for Evidence on disclosure of costs and charges in workplace pension schemes during 2015. We and the FCA are assessing the responses received and remain committed to making regulations and rules in this Parliament requiring publication of costs and charges, as per the legal duty in the Pensions Act 2014.