It's time sharebrokers had uniform fee disclosure
In New Zealand, on the front page of the Financial Market Authority’s (FMA) website, you will find an orange box titled “How much of your KiwiSaver return is made up of fees?”.
It sits just under the tagline “Promoting fair, efficient and transparent financial markets”. What you will not find is anything on how much a share broker charges to manage your retirement savings.
Fees, or how much a client is charged to have their money managed, is an important ingredient to consider if New Zealanders are to make informed investment decisions. Fortunately, fees are also one of the few variables in finance which are relatively certain (performance fees are of course an exception).
For many years New Zealand was the ‘wild west’ of fee calculations and disclosure. Even if investment organisations had wanted to disclose what they were charging their clients, there was no single set of rules which others were obligated to follow.
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