Professional trustee company PTL said it has launched a service for asset managers aimed to help their clients assess investment transaction costs.
Since January 3, companies managing assets of defined contribution workplace schemes have to provide them with information about transaction costs, administration charges and appropriate contextual information.
Costs have to be calculated using the so-called 'slippage cost' methodology, which accounts for the difference between the expected cost of a trade and the actual price paid.
But Richard Butcher, managing director at PTL, said the new requirements are not perfect, leaving trustees to interpret the data they receive from managers.
"Asset managers will be inundated with requests from trustees for more data and/or meetings to explain context,” he said.
He said the new service, called Clear Funds, involves asset managers providing PTL with the cost data for their funds, as well as details of the control framework in place to optimise cost. This is then assessed and a short report produced for each fund, which managers can share with pension clients.
