IDEAL FUND

Conclusion This is a critical time for policymakers and the industry to reinforce the confidence in long-term saving products, especially for retirement planning. The steps taken in the future will have to be in tune with investor needs, and (we hope) the themes and measures discussed within this report will foster a discussion to address the scepticism of investors towards product producers and intermediaries on these issues. The FSA introduced a move from a commission-based fee model towards a fee-based advice model for independent advice and more transparency in fees received by the intermediaries; In March 2009, the IMA CEO Richard Saunders, when talking about the challenges facing the IM industry in a world of personal accounts, identified the following key challenges: greater visibility of the industry to the investor through defined contribution pensions, unit-linked, and other fund-like products; investor education; and the default fund’s investment strategies; The EFAMA released a report on “Rethinking Retirement Income Strategies: How Can We Secure Better Outcomes for Future Retirees”; Regulators and the industry have been pushing certain themes during the past few months:

The EU Commission committed to creating a level playing field for product disclosures and sales processes for all packaged retail investment products, such as investment funds, insurance-based investments, and the various types of structured products; These are encouraging developments in the right direction; however, the EU should completely take over the policy agenda in this sector to allow a harmonisation across Europe and that the discussions and efforts should be channelled and holistic measures taken on long-term savings, especially for retirement planning, in order to achieve the highest effectiveness and results for the retail investor in Europe.

Ideal Fund Reengineering the fund value proposition