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Fee for management - Anything left over'," Rentoul writes.
After the first year, customers can opt to pay a monthly fee for management access and support.
Another commonplace technique for multinationals to lower their tax bills - a variation on the transfer pricing theme - is for the head office in one country to charge all the national subsidiaries a large fee for "management services", such as accounting.
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If investors are paying higher fees for management skill, that would suggest that fund managers in Germany are more skilful or more intelligent than those in the US and that those in the UK are the brightest of them all.
That's product and services, fees for management, design and recruitment.
Founder Will Hurley told me that those plans typically charge about 2percentt in fees for management of the program, and that can go as high as 4percentt in some cases.
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.
Instead, brokerage firms would sell shares in them and charge a fee for the management of the assets, which would be invested in stocks or bonds, as is done in a mutual fund.
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.
Instead of taking a fee for their management services (which would be taxed as ordinary income) people who earn carried interest take a percentage of assets under management and a percentage of the eventual profits, a formula often described as "two and twenty".
But in recent times, the big money has come in implementing the plan collecting, say, a 1%-per-year fee for ongoing management of assets.
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Justyna Jupowicz-Kozak
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