Defining ‘value for money’ bewilders asset managers
Asset managers are expressing concerns over the European Commission’s lack of a clear definition for “value for money,” arguing its subjective nature complicates the assessment of investment service costs amidst new regulatory pressures.
‘Value for money’ replaces full kickback ban in EU retail plan
Fund firms face the prospect of EU rules setting standards of “value for money” for their investment products under the Retail Investment Strategy due to be unveiled on 24 May. This could include disincentives, for example, to charging active management fees for an investment that underperforms an index fund. For all the discussion of a ban on inducements for investment advice, the commission has decided to propose a more limited inducement ban on execution-only investments.