Hidden costs and fees is a big problem in the pensions and investment industry, said Gina Miller, founder of the True and Fair Campaign and SCM Private.

She made the comment in the light of the UK Financial Conduct Authority (FCA) fining State Street for overcharging clients in transition management fees.

“Finally the investment management industry is being held to account for the outrageous and frankly dishonest practice of hiding costs and fees from clients. This is a welcome move by the FCA but the action against State Street represents just the tip of the iceberg to a far wider problem.

“Hidden costs and fees are a pensions and investment industry endemic that must be stamped out and it is high time that all investment and pension managers were held to account and forced to disclose the full costs and fees they charge in an understandable format. We hope this long-overdue reforming continues and ends decades of UK consumers being rip-off.”

The FCA is doing on-going work into the level of transparency in the investment management industry.