Investor advocates in the United Kingdom say that regulators should consider reforms, including possibly imposing a fiduciary duty on investment managers, amid concerns that retail investors aren’t aware of their investment costs.

The Financial Services Consumer Panel Monday published a discussion paper on the costs and charges consumers face when investing. It reports that new research commissioned by the Panel suggests that retail customers do not understand the costs of investing. And, it says that, while cost transparency can certainly be improved, it recommends that regulators go further.

The panel says that investment managers should be required to disclose a single, comprehensive annual charge for their services; and, that all other costs, which are currently deducted by the investment manager directly from the fund, should be borne by the investment management firm instead. “This would enable consumers to compare different firms’ charges, and also act as a powerful incentive on firms to improve efficiency,” it says.

Additionally, it says that regulators should consider imposing a tougher legal obligation on investment managers to put the interests of their customers first (aka a fiduciary duty).

“Investment managers in the UK have stewardship of £2.4 trillion ($4.25 trillion) of retail consumers’ money, including through pension funds. Poor disclosure, weak governance and multiple conflicts of interest mean that competition in the investment market is not working in the best interests of consumers,” said Sue Lewis, chair of the panel.

“The problems our research has identified are long standing, and need fixing urgently,” she added. “It is completely unacceptable that consumers do not know what firms are charging them to manage money on their behalf, and cannot compare different offers. While we recognise that the industry is working to improve disclosure, this does not go far enough.”

The panel says that it will host a roundtable with stakeholders early next year to discuss the findings of the research and suggested solutions.