The Price of Retail Investing in the UK

Financial Services Authority Occasional Paper 6

76 Pages Posted: 17 Oct 2003

See all articles by Kevin R. James

Kevin R. James

London School of Economics & Political Science (LSE) - Systemic Risk Centre

Date Written: February 2000

Abstract

While retail investors in aggregate own a significant portion of the financial wealth of the UK, they largely delegate the management of that wealth to investment funds. These funds in turn charge retail investors for the portfolio and risk management services they provide, sparing retail investors the burdensome task of perform-ing these various services themselves. So in order to choose a sensible fund (a fund that meets his or her requirements), a retail investor must be able to ascertain the services provided and the price charged by each of the funds he or she may consider.

To provide assistance to retail investors facing the task of choosing a fund, the Chancellor of the Exchequer announced in the March 1999 Budget that the Financial Services Authority will publish league tables of costs and charges in investment products. To develop these tables, the FSA needs to understand the charging structures of investment funds. This paper presents some preparatory research into this topic.

Keywords: Retail investors, Financial Services Authority, Comparative tables, investment funds

JEL Classification: L5

Suggested Citation

James, Kevin Roger, The Price of Retail Investing in the UK (February 2000). Financial Services Authority Occasional Paper 6. Available at SSRN: https://ssrn.com/abstract=428041 or http://dx.doi.org/10.2139/ssrn.428041

Kevin Roger James (Contact Author)

London School of Economics & Political Science (LSE) - Systemic Risk Centre ( email )

Houghton St
London
United Kingdom

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