Communicating changes in billing and fees

IN PREPARING a recommendation about, for example, an asset allocation strategy or investment product, the analyst should include factors that are relevant to the asset classes or investment products being discussed. They are also required to follow up and communicate any significant changes in the risk characteristics of a security or asset strategy. In these respects, investors are generally more familiar with what information they may require, and the obligations of finance professionals in this area.

But what about less-discussed areas such as fees? Are fees disclosed and communicated to clients and potential investors? What are some best practices to which finance professionals need to adhere when communicating with investors?

The standard for communicating with clients and prospective clients

The CFA Institute is the global association of investment professionals that sets standards for professional excellence and credentials. It addresses the issue of how finance professionals should communicate in its Communication with Clients and Prospective Clients Standard.