ASIC lengthens transition period for fee disclosures

ASIC had previously provided a class order for certain disclosure obligations in relation to periodic statements for both superannuation and managed investment products for reporting periods prior to 30 June 2018 to operate differently for reporting periods after 30 June 2018, according to a statement.

Similarly, ASIC the class order also permitted superannuation trustees to deal with property operating costs in product disclosure statements (PDS) given before 30 September 2018 by providing details of these in the 'Additional explanation of fees and costs' part of the PDS rather than incorporating them into the figure disclosed as 'investment fees'.

In November 2017, ASIC appointed an external expert to conduct a review of the fees and costs disclosure in superannuation and managed investments.

The expert then released the review in July 2018 as Report 581, Review of ASIC Regulatory Guide 97: Disclosing fees and costs (REP 581).

ASIC said it extended the transition dates due to upcoming consultation on the proposals arising out of recommendations made in REP 581.

“ASIC has decided to again extend the transition dates by one further year to their equivalent dates in 2020 so that industry need not incur additional time and expense where ASIC is consulting on proposals that could, for example, change the treatment of property operating costs,” ASIC said.

ASIC expects to release the consultation paper in January 2019.

Adrian Flores

Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.

You can contact him on [email protected].