Member

Clause 12 details the types of VFM data that may have to be disclosed, including data relating to investment performance, asset composition, service quality and charges. The noble Baroness, Lady Stedman-Scott, hit on an important point. A key objective of the VFM framework is to drive transparency over costs and charges, and that is why we are proposing that in-scope arrangements will be required to disclose these, including a breakdown of investment charges and service costs at the one-year point. There is more detail in chapter 10 of the consultation paper, so I hope that helps reassure her. These disclosures would enable the fees-to-returns ratio to be calculated, as raised in Amendment 50. I agree that costs and charges must be transparent, but we will need further engagement with industry to get the metrics right, which is why the detail will need to be in regulations.