Fawcett is chief investment officer of Nest, the UK government-sponsored defined contribution agency. He will chair his first meeting in the week beginning July 4, according to an IA spokesman.
Andy Agathangelou of the Transparency Task Force lobby group, which he co-founded with veteran cost campaigner Christopher Sier, will serve on the committee. Daniel Godfrey, who was forced out as chief executive of the IA in 2015, became a Transparency Task Force ambassador in February.
IA committee members include Richard Butcher, of pension trustee group PTL; Teresa Fritz, who serves on the Financial Services Consumer Panel; Chris Hitchen of RPMI Railpen, who is renowned for its hawkish approach to fees and costs; David Hare, chairman of Phoenix Lif’e’s independent governance committee; and Graham Vidler, director of external affairs at the Pensions and Lifetime Savings Association. Asset managers are not directly represented on the committee.
The new board will be charged with delivering a disclosure code relating to transaction and administration costs incurred in the supervision of retail and institutional portfolios, alongside manager fees.
In a statement, Fawcett said: “This initiative has the potential to help the industry take significant steps to greater transparency of transaction costs.”
Jonathan Lipkin, IA director of public policy, said: “We are building a framework that can provide consistent and complete information about charges and transaction costs.”
A cost template has been developed by Sier. He told Financial News on June 20 he was willing to offer it to the IA. But he added: “Their standard is my standard. As long as they don’t forget that and don’t try to dilute it, then the answer is yes. I want to solve the problem.”
He said the voluntary code was the best way forward but stressed that the regulator should guide the initiative.