ASIC Reports On Fee Disclosure Practices For Super And Managed Investments
ASIC undertook a review in order to understand the practices used by industry and to identify any gaps which may lead to underreporting of fees and costs.
The Government’s Stronger Super reforms relating to fee and cost disclosure, which came into effect on 1 July 2014, have a substantial impact, particularly for super trustees and to a lesser extent managed investment issuers. This gave ASIC an opportunity to explore the effect of these reforms and any difficulties the industry has encountered in applying the necessary changes.
With the assistance of industry we identified a number of issues which have a substantial impact on how fees and costs are disclosed.
The report identifies:
The review of fees and costs disclosure practices is an important piece of work for ASIC that will assist us to ensure investors are confident and well informed.
Commissioner Greg Tanzer said, ‘It is crucial for super and managed fund issuers to disclose fees and costs on a consistent and comparable basis in order for consumers to make meaningful comparisons between products.
‘Our review shows that there is some inconsistency at the moment and we will work with industry to improve fee and cost disclosure more generally’.
ASIC acknowledges the assistance of those organisations that provided input during the review.