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Article: DRAMATIC CHANGE: Proposal would shift trade costs from pension plans to managers.(money managers to pay transaction costs)
- Article from:
- Pensions & Investments
- Article date:
- March 19, 2001
- Author:
CopyrightCOPYRIGHT 2001 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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LONDON - The U.K. government has backed a proposal for a radical change to the treatment of stockbroker commissions that could see money managers footing the bill for transaction costs on client portfolios.
The proposals, published last month by Paul Myners, chairman of Gartmore Investment Ltd., London, also suggest money managers charge plan sponsors a single fee that includes the cost of all transaction and research services.
This is a dramatic change from the current system, in which trustees pay their money managers an annual management fee and, in addition, pay for commissions to stockbrokers for dealing, research and other related services.