NBP: asset management fees should be limited and diversified

Poland should diversify asset management fees of TFIs investment funds based on the investment risk profile, the central bank (NBP) said in its opinion to a draft bill on financial instruments. “The past few years have shown that there is no significant reduction in the level of fees charged to the assets of the funds, so we consider it appropriate to introduce a regulation limiting the rates of management remuneration,” NBP said, adding that the fees for the management of open funds are significantly higher than those for managing closed funds. According to NBP, fees should be based on risk profiles so that ”funds with lower investment risk and, what follows, with lower potential to generate higher rates of return, should bear lower management fees than funds with a high-risk profile.” The draft bill amending current legislation is aimed at implementing the MiFID II directive.