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State Street action ‘just tip of iceberg’
03 February 2014
State Street fine for hidden transition management charges is welcome but more work needs to be done in wider investment management industry, according to SCM Private’s Gina Miller
Hidden costs and fees is a big problem in the pensions and
investment industry, said Gina Miller, founder of the True and
Fair Campaign and SCM Private.
She made the comment in the light of the UK Financial Conduct
Authority (FCA) fining State Street for overcharging clients in
transition management fees.
"Finally the investment management industry is being held to
account for the outrageous and frankly dishonest practice of
hiding costs and fees from clients. This is a welcome move by
the FCA but the action against State Street represents just the
tip of the iceberg to a far wider problem.
"Hidden costs and fees are a pensions and investment industry
endemic that must be stamped out and it is high time that all
investment and pension managers were held to account and forced
to disclose the full costs and fees they charge in an
understandable format. We hope this long-overdue reforming
continues and ends decades of UK consumers being
The FCA is doing on-going work into the level of transparency
in the investment management industry.