the transparency of costs is about to improve , Actualité/Actu Epargne

the transparency of costs is about to improve , Actualité/Actu Epargne

Among the few changes occurring at the beginning of June, a small progress should be noted in terms of the transparency of the costs of life insurance contracts and PERs.

From today, Wednesday June 1, 2022, the major distributors and producers of these investments have promised to display a summary table of the costs of their contracts on their websites.

Expressed as a percentage of outstandings or as a flat rate, these costs are classified by category of transaction and support (annual management costs for distributors and management companies, one-off costs per transaction, managed management costs, etc.).

Presented according to a standardized model, and indicating the average of the costs recorded in the last closed financial year, this document will not make it possible to know the exact amount of the costs incurred for the current year.

However, savers will be able to get a first idea, within a relatively accurate range, of what their investment costs them, and therefore what it really brings them – performance net of all costs.

Welcome standardization for comparing offers

Above all, this standardization effort will make it easier to establish a comparison of the offers on the market, and, at least, to avoid opting for the busiest supports.

This new table, resulting from an agreement on the place of the profession signed in February, is the fruit of a request from the Minister of the Economy Bruno Le Maire, who had denounced the costs a few months ago ” excessive » practiced by the distributors on the PER, which reach more than 3% on average, without counting those of the management companies of the CPUs hosted in the contracts.

The agreement remains a commitment to good practice, not a legal obligation. This morning, the majority of the ten websites of major life insurance and PER distributors that we consulted had not yet shown this table of costs. However, it is already online for a handful of them, such as AG2R La Mondiale and Société Générale Assurance.

Next step: display of total unit-linked fees

In the weeks to come, the information on these costs will be further reinforced: a ministerial decree provides that from next July 1, the total costs of the units of account during the last closed financial year (constituting the sum of the management costs deducted from the unit of account and recurring charges deducted from the contract), expressed as a percentage, must appear in the pre-contractual information of life insurance, capitalization and PER contracts.

And from January 1, 2023, the mention of these total costs will be mandatory for each unit of account in the documents of the annual information campaign.

This information will be much more precise than that displayed in the distributors’ “expenses table”, because the amounts displayed will be those actually charged for each CU the previous year, and not a simple average by “type” of unit of account (“equity funds”, “bond funds”, “real estate funds”…).

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