An investigation is to be carried out into the transparency of investment and fund management costs.

The Financial Services Consumer Panel will carry out the probe after expressing concerns over whether these charges have been justified.

The independent organisation said in its annual report, published this week: "In 2014‑15, we will look in depth at investment costs.
"The many layers of charges levied on investment funds eat into returns for the consumer.
"Some are justified and transparent, many are not.
"Either way, they make it hard for consumers to know what they are paying, and to compare products."

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In the annual report the FSCS also expresses concerns over firms' compliance with RDR.
The report stated: "The panel is disappointed at the continuing low levels of compliance with the RDR.
"The FCA found that the vast majority of investment advisory firms it assessed were non‑compliant in some respect, with a significant proportion having multiple failings.
"Many problems are identical to those identified by the FCA last year, despite it having issued extensive guidance in the meantime.
"In light of this, we are urging the FCA to consider the effectiveness of its regulatory tools and, in particular, how it deals with persistent non‑compliance. "This will be all the more important in light of the Budget changes."