cost transparency is improving

From 1 June, large distributors and producers of placements and pledges will publish a summary of contract fees on their websites.

Expressed as a percentage of outstanding or flat rate, these costs are classified by operation and support category (annual management costs of distributors and management companies, one-off costs per operation, pilot management costs …).

Presented according to a standardized model, and indicating the average of the expenses incurred in the last financial year, this document will not allow to know exactly the amount of expenses incurred for the current year.

But savers will still be able to get a first idea, in a relatively accurate range, of what it costs them to invest, so what they really earn – net performance at all costs.

A welcome standardization to compare offers

In addition, this standardization effort will make it possible to establish a comparison of the offers on the market, and, to a lesser extent, to avoid the option for more supports and loads.

This new table, issued by a place agreement of the profession signed in February, is the result of a request from the Minister of Economy Bruno Le Maire, who had denounced the costs a few months ago excessive practiced by distributors on PERs, which average more than 3%, not counting those of UC management companies hosted in contracts.

Next steps: display all the mills in the account units

The agreement remains a commitment to good practice, not a legal obligation. In the coming weeks, information on these cutters will be further strengthened as a ministerial order stipulates that from 1 July onwards, the total costs of the units of account during the last closed financial year (constituting the sum of the costs of unit of account and recurring costs of the contract), expressed as a percentage, must appear in the pre-contractual information of life insurance contracts, capitalization contracts and PERs.

Et à compter du 1er janvier 2023, the mention of these total costs will be mandatory for each unit of account in the annual information campaign documents.

KOMPOZ contract information request proposed by Sicavonline

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