New watchdog vows to scrutinise fund charges Investment fund charges will be "under scrutiny" from the new regulator, it was announced this week. Martin Wheatley, the new chief executive of the Financial Conduct Authority (FCA), questioned the fees levied on actively managed investment funds and said there would be a "renewed focus on getting a fair deal for consumers." The FCA will replace the Financial Services Authority, and aims to investigate hidden charges and put investors first. Mr Wheatley said: "We have a wide range of investment styles, asset classes and sectors to choose from, but sometimes choice can paralyse people. The variety does not mean we are giving customers clear or competitive choices. Most are happy to pay a fee but that fee must be reasonable and we must know what we are paying for. As an investor I need confidence that my asset manager is keeping my investments safe and growing my investments without fees taking more than their fair share. The Investment Management Association (IMA) reacted saying: "We agree it is important that consumers should understand what they are paying for financial products. The fund management industry has nothing to hide when it comes to charges. The EU rules under which it operates provide for full and detailed disclosure of the charges incurred in managing a fund. In addition, IMA has recently issued guidance to its members on enhanced disclosure of the costs incurred in buying and selling the underlying investments of a fund. No investment can be made free of cost. For ordinary investors, funds offer the ability to acquire a diversified portfolio at much less cost than investing direct in shares or other assets. And the industry will continue to strive to ensure that it is giving its customers value for money.