The Australian Securities and Investments Commission (ASIC) has published updated guidance ─ Regulatory Guide 97 (RG 97) ─ for how product issuers and platform operators should disclose fees and costs for superannuation and managed investment products. It aims to clarify existing fees and cost disclosure requirements, to help promote compliance among issuers.
The guidance applies to all product disclosure statements (PDS) issued on or after 30 Sep 2020, and periodic and exit statements with reporting periods commencing on or after 1 Jul 2021. Fund managers could choose to adopt the guidance early for periodic and exit statements for reporting periods starting on or after 1 Jul 2020. Associated legislation also was published ─ ASIC Corporations (Disclosure of Fees and Costs) Instrument 2019/1070 ─ effective 28 Nov 2019, although ASIC Class Order 14/1252 and the transitional version of RG 97 will apply until the end of the transition period.
In 2020, ASIC will continue work on fees and cost disclosures on platform arrangements, including monitoring disclosures of fees and costs. ASIC also will clarify with industry bodies how financial advisers should use fees and costs information when giving advice.