Disclosure of Fees and Costs - Package of Disclosure Measures

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Package of Fee Disclosure Initiatives

Under the Financial Services Reform Act 2001 (Cth) (FSRA) framework, the Government has introduced a number of requirements to promote the effective disclosure of information in relation to financial services. As part of its commitment to promoting fee disclosure and transparency, the Government has released a package of fee disclosure initiatives.

The package sets out a standardised approach for superannuation and managed investment products for the disclosure of fees and costs and is aimed at promoting consistency, comparability and cognisance. It is made up of several elements including the mandating of the ASIC Fee Template, a single-figure disclosure model and a ‘consumer advisory warning’ box.

• The ASIC Fee Template involves a consistent tabular presentation of fees and costs. Its inclusion will be mandated in both Product Disclosure Statements (PDSs) and Periodic Statements (relevant elements only).
• The fee disclosure model is an expanded and developed version of the fee disclosure model developed by the International Organisation of Securities Commissions (IOSCO). It is a basis for presenting a range of significant fees and costs as a worked example in a PDS.
• The boxed consumer advisory warning is aimed at educating and sensitising consumers to the importance of value for money considerations and the impact of fees and costs on end benefits. It also includes a link to ASIC’s web page and superannuation calculator.

Draft regulations are intended to be released for public exposure in the near future.

Detailed information on the package is attached below. Further information can also be found in a Press Release on the Parliamentary Secretary to the Treasurer’s website and ASIC’s website – www.asic.gov.au.

Telephone inquiries should be directed to Brett Wilesmith on (02) 6263 2871.

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