U.S. regulators are seeking to enhance the disclosure of broker-dealer fees that would make it easier for investors to understand and assess the costs of investing.

The North American Securities Administrators Association (NASAA) announced Thursday that it has launched a working group to develop improved broker-dealer fee disclosure. The group consists of state securities regulators, along with representatives from the Financial Industry Regulatory Authority (FINRA), the Securities Industry and Financial Markets Association (SIFMA), and the Financial Services Institute (FSI).

NASAA says that the working group will consider a variety of options for enhancing disclosure, including the development of a model fee disclosure form, accessibility and transparency guidelines, uniform terminology and fee nomenclature, and recommendations on how to notify customers of fee changes. It will also look at the presentation of disclosure, customer comprehension, and the timing and methodology of fee disclosure.

Earlier this year, NASAA issued a report examining fee disclosure which recommended, among other things, that a joint working group be formed to enhance disclosure. That report pointed to disparities in how broker-dealers disclose fees. It noted that, while firms may be complying with the technical requirements, disclosures lose their effectiveness when hidden in small print, embedded in lengthy account opening documents, or couched in confusing terminology.

“We look forward to working collaboratively with the industry and FINRA to achieve more meaningful disclosure of broker-dealer fees,” said Andrea Seidt, NASAA president and Ohio securities commissioner. “Investors have a right to know how much they are paying for these services. Our goal is to develop a model fee disclosure that is simple to read, easily accessible, and can be used effectively by investors to understand and compare fees.”

Seidt said that the working group will take in to consideration the different types of firms, including wirehouse firms, independent broker-dealers, clearing firms, and introducing firms, among others.

The working group consists of the representatives from NASAA, FINRA, SIFMA, FSI along with several firms: Signator Investments Inc., Prospera Financial Services, LPL Financial, Wells Fargo Advisors, Edward Jones, and Bank of America/Merrill Lynch.