The Board of the International Organization of Securities Commission today published the final report on Good Practice for Fees and Expenses of Collective Investment Schemes (CIS), which aims to identify common international examples of good practice that can be applied to CIS fees and expenses. Regulators have long been concerned about the impact of CIS fees and expenses on the investment decisions taken by investors. Fee arrangements, even when fully disclosed, can give rise to conflicts of interest that are best addressed by rules of conduct. High standards of transparency and conduct in this area should help encourage competition among CIS operators and lead to a more efficient market, thereby eventually benefitting investors. In 2004, IOSCO reviewed existing practices with respect to CIS fees and expenses and published a set of standards to be regarded as good or best practice. It was envisaged that these practices would evolve over time, as the natural evolution of the industry resulted in new product structures, investment strategies and distribution models, leading regulators to adapt their approach.
↧