The Investment Association has set out plans for a new industry code as it looks to standardise disclosure for charges and transaction costs.

The trade body that represents UK investment managers has outlined a blueprint for the reporting of costs using a consistent approach across the market, in line with regulatory requirements. It aims for FCA recognition.

The IA stated it was the first time a “common framework” had been created “for enhanced disclosure across investment products and services”.

It will adapt, as necessary, to the conclusions of the FCA Asset Management Market Study, officials said.

The details are contained in a public consultation, which forms part of an ongoing industry wide initiative on enhanced transparency.

An Independent Advisory Board with senior pensions industry chiefs and consumer body representatives has helped to create the proposals. This was set up in July 2016 to provide advice and challenge to the IA.

The IA has collaborated with the Local Government Pension Scheme Advisory Board, and in line with recommendations from the Financial Services Consumer Panel.

Jonathan Lipkin, director of public policy, said: "The asset management industry is fully committed to transparency and recognises the need to provide clear disclosure of both charges and the transactions costs incurred as part of the investment process.

"The new Code provides for the first time a common framework for enhanced disclosure across investment products and services. It is a major opportunity to consistently define and provide data on charges and transaction costs.

"The IA would like to work with the FCA to seek regulatory recognition for the new Code in the FCA’s Conduct of Business Sourcebook.”

The Investment Association's new Code will supersede the Pension Fund Disclosure Code and the CIS Disclosure Code, which create a similar regime for investment funds.

The Investment Association's new code will supersede the Pension Fund Disclosure Code and the CIS Disclosure Code, which create a similar regime for investment funds.

As well as facilitating provision of data under MiFID II and PRIIPs, it is intended to be fully compliant with final rules for the UK DC market following FCA CP16/30.

The closing date for consultation responses is Friday 19 May before a final set of proposals in Q3.