In a statement released yesterday, ASIC commissioner Greg Tanzer said the regulator is responding to “industry concerns” to clarify some of the key fee and cost issues that will help “improve the quality and consistency of disclosure”.
“Consistent and accurate fee and cost disclosure is important for ensuring consumers are well informed and confident in making investment decisions,” Mr Tanzer said.
ASIC said it is particularly interested in feedback on proposed changes to clarify requirements for indirect costs, double counting and fee issues for superannuation products.
In addition, ASIC is seeking feedback on the appropriate application of the disclosure of costs associated with investing through interposing entities by managed investment products, and the appropriate application of the consumer advisory warning for some products.
The regulator’s statement follows a report ASIC released earlier this year on fees and disclosure.
“[The report] outlined ASIC’s work in this space, which will also include a review of Regulatory Guide 97: Disclosing fees and costs in PDSs and periodic statements to reflect the effect of the Stronger Super reforms and any other legislative changes,” a statement from ASIC said.
“Those interested in providing feedback to ASIC as part of this process can request a copy of the draft class order,” the statement said.
Feedback and comments on the proposed changes are due by 17 October 2014.
