In the aftermath of the launch of the Savings and Investments Union, Promoted by the European Commission to stimulate citizens’ investments and make the financial markets more integrated and efficient, the debate on the transparency of the relationship between investors and financial intermediaries is rekindled. To encourage participation in the capital markets and mobilize investments in the European economy, in fact, it is essential that retail investors are protected and have access to a quality service at a clear price and as low as possible.
The role of the cost and charge report report
A key rolein this sense, the cost and charge report covers the document introduced by the 2018 MIFID II directive, which financial intermediaries are required to send to investors at least annual and in which all the cost items incurred by customers must be explicit for their investments. A tool still not adequately known and understood by the Italians, as emerges from the latest survey of Moneyfarm, a financial consultancy company with a digital approach, which after a year returns to take stock of an essential document for the management of personal financial resources and for the evaluation of the convenience of the investments made.
Knowledge and risk
From the analysis of a large sample of investors, eMerge like 36% have a nothing or limited knowledge of the existence of the cost and charge report, despite almost all of the interviewees (97%) consider the costs and commissions a relevant factor in investment decisions. The awareness about the existence of the “ex post reports” grows as the risk propensity grows: the most experienced profile seems to be a man (64%), between 43 and 58 years (70.04%), with high risk propensity (65%) and an inveible median assets around 80 thousand euros.
Even among those who are aware of the existence of the reporthowever, there is great uncertainty about the methods of information: almost 60% admit they have struggled to find the document, not to know where to find it or have never received it, while only 40% know with certainty that it must be sent by the intermediaries every year by April 30.
ETF, the choice of those who know the report
The vast majority (72.5%) of those who know the report and therefore show a greater awareness of the impact of the costs on the performance of investments, the product considers the ETFs with the best cost/benefit ratio, in clear contrast with the tools actually held by Italian savers, who choose ETFs only in 15%of cases, against the primacy of mutual investment funds, 39%. Among those who have a clear understanding of the costs incurred, the choice of ETF reaches 79.5%.
Attention to the costs and knowledge of information means to protect investors They go hand in hand with the positive judgment expressed by the most informed customers against the consultancy service received: more than half of those who know exactly the report considers the cost of adequate advice compared to the value of the service received. Numbers that highlight how greater transparency not only helps investors to make more informed decisions, but also better the perception of the value of the service provided. Perception related positively also to risk propensity, with 42% of investors with high risk profile which consider the paid cost adequate to the service received, against 26% of investors with low risk profile.
