The figure below gives an overview of the main hidden payments
flowing between the participants. In the following analyses, all
non-disclosed payments are in red, both in graphics and tables.
Figure 8: The main generally undisclosed payments
flowing
For the first time, we see the fund producer as a participant.
The fund producer is generally intransparent to the
Client1.
Table 2: Main Non-Disclosed payments
Footnote
1 Disclosure vs. Non-Disclosure of fund fees are debatable.
Yes, the fees do appear in the fund prospect. However the Client is
highly unlikely to read the prospect. The asset manager places the
funds in the Clients portfolio without asking the Client. The fees
associated with funds are not disclosed on Client statements,
neither the up front load nor the management fee. The Client has no
idea if the funds in his portfolio charge 0% or 5% up front load,
or for that matter a 0.2% or 2% management fee. We treat these
payments as
