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CTI launches Templates for Disclosure of Costs and Charges to Institutional Investors

On May 22, the UK Financial Conduct Authority (FCA) published a statement welcoming the launch by the Cost Transparency Initiative (CTI) of finalized and industry-ready templates for the standardized disclosure of costs and charges to institutional investors in the asset management sector.

The CTI is an independent group working to improve cost transparency for institutional investors and is supported by the Pensions and Lifetime Savings Association, Investment Association and Local Government Pension Scheme Advisory Board. The CTI published a press release on May 21, announcing the launch of the templates, which are available to download from the CTI webpage. The templates are accompanied by guidance for pension schemes and their advisers on how to make use of cost information, and for asset managers on how to provide cost information to their clients.

In its statement, the FCA explains that the templates can be used by institutional investors to access and assess critical information on costs. The FCA notes that the CTI has not focused specifically on creating a method of delivering compliance with the revised Markets in Financial Instruments Directive and other requirements. However, the standards have been designed to be aligned with relevant disclosure obligations, where appropriate. The FCA adds that while firms must, therefore, continue to ensure that they individually meet all relevant regulatory requirements, if the templates are completed in a comprehensive and accurate way, including reflecting all costs and associated charges, the information they contain should assist firms in meeting those requirements.

The CTI was a key remedy of the FCA’s asset management market study (AMMS) (for more information on the AMMS, please see the Corporate & Financial Weekly Digest of February 15, 2019).

The FCA’s statement is available here.

The CTI’s press release is available here.

©2020 Katten Muchin Rosenman LLP


About this Author

John Ahern, Financial Attorney, London, Katten Law Firm

John Ahern, partner at Katten Muchin Rosenman UK LLP and head of the London Financial Services group, focuses his practice on banking, financial services, UK and European financial markets, and related regulations. His background in private practice and as in-house counsel at a global investment bank provides him with perspective on the unique regulatory issues facing the wholesale and private banking sectors. John advises multilateral trading facilities, broker-dealers and banks on trading, clearing and settlement as well as custody of securities—both physical and...

+44 (0) 20 7770 5253
Carolyn H. Jackson, International Attorney, Katten Muchin law firm

Carolyn Jackson is a partner in Katten Muchin Rosenman UK LLP and is a Registered Foreign Lawyer. She provides US financial regulatory legal advice to a broad range of market participants, including commercial banks, investment banks, investment managers, broker-dealers, electronic trading platforms, clearinghouses, trade associations and over-the-counter derivatives service providers.

Carolyn guides clients in the structuring and offering of complex securities, commodities and derivatives transactions and in complying with US securities and commodities laws and regulations. 

+44 0 20 7776 7625
Nathaniel Lalone, Katten Muchin Law Firm, Financial Institutions Attorney
Senior Associate

Nathaniel Lalone, a partner at Katten Muchin Rosenman UK LLP, has a broad range of experience in the regulation of financial products and financial markets, and frequently provides regulatory and compliance advice to trading venues, clearing houses and buy-side firms active in the over-the-counter (OTC) derivatives, futures and securities markets. He is actively involved in advising clients on the implementation of MiFID 2 and MiFIR in the European Union as well as the international reach of US financial services regulation. He also has significant experience with structuring...

+44 0 20 7776 7629
Neil Robson, private equity fund managers counselor, Katten Law Firm, London

Neil Robson, a regulatory and compliance partner with Katten Muchin Rosenman LLP, focuses his practice on counseling hedge and private equity fund managers and other investment advisers on operational, regulatory and compliance issues. He regularly addresses Financial Conduct Authority (FCA) and EU authorization and compliance under both the EU Alternative Investment Fund Managers Directive (AIFM Directive) and MiFID, cross-border issues in the financial services sector, market abuse, anti-money laundering and regulatory capital requirements, formations and buyouts of...