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For instance, "softing" arrangements, common in many rich countries, involve a fund manager paying commission to stockbrokers out of the investor's pot of money over and above the percentage fee for fund management.
These include not only fripperies such as trips to the opera but also more professional inducements such as provision of research and Reuters or Bloomberg terminals.Much more radically, Mr Myners recommended the introduction of an all-inclusive fee for fund management, instead of a basic 1-2% of assets under management, plus a fee supposedly covering trading.
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According to Eurekahedge, a data provider, the average performance fee for funds of funds was 6.5% in 2009, down from 10% in 2007.
Core fees for fund management and operations aren't directly affected by the measure.
Or they may go elsewhere for management of the company's retirement accounts, which generate lucrative fees for fund families.
Among them are fees for fund of funds and pension managers, not to mention, of course, the expense of the hedge funds.
Most firms that charge for valuations levy a fee for each fund or stock that the deceased investor held through them.
The emphasis on transaction costs is particularly pertinent under fee-for-service funding models where only direct service provision activities are funded.
In negotiating management fees for funds, he added, mutual-fund directors have also failed miserably.
The attorney general's decision to press for lower fees has ignited considerable criticism, especially from the Securities and Exchange Commission, which has said it is reluctant to set fees for funds because it does not want to interfere in matters that it regards as best left to the markets.
The fees for mutual funds and ETFs that follow benchmark indexes are very low, and the fees for funds that follow strategy indexes are, in relative terms, much higher.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com