THE Financial Services Council (FSC) has today welcomed several initiatives included in ASIC’s revised fees and costs disclosure requirements for PDSs and periodic statements, including the updated Regulatory Guide 97.
FSC CEO Sally Loane said, "We are pleased to see that the updated rules increase comparability and clarity of disclosure, including changes as to how some of the fees and costs categories are grouped together.
“Consistency in reporting of superannuation fees is crucial to ensure consumers can meaningfully compare products and make informed choices about their retirement savings,” Ms Loane said.
“Overall the changes are a positive step forward for Australians, who will be able to more clearly understand what they are being charged for when it comes to financial products. We are however disappointed that our request for a longer timeframe for compliance has not been granted in today’s update.
“The FSC’s submission earlier this year pressed strongly for a longer timeframe for compliance, particularly in the case of PDSs. We submitted that this was necessary to accommodate the extensive system, data gathering and disclosure changes – the shorter timeframe will create added pressure and risk for businesses implementing the new rules,” Ms Loane said.
“The FSC looks forward to engaging with ASIC over the coming months to ensure industry has a disclosure framework that provides transparent, comparable information and promotes consumer trust and confidence in the financial services system.”
The new rules and guidance follow ASIC’s Consultation Paper 308 Review of RG 97 Disclosing fees and costs in PDSs and periodic statements released earlier this year, and Report 581 Review of ASIC Regulatory Guide 97: Disclosing fees and costs in PDSs and periodic statements.
About the Financial Services Council
The Financial Services Council (FSC) has more than 100 members representing Australia's retail and wholesale funds management businesses, superannuation funds, life insurers, financial advisory networks and licensed trustee companies. The industry is responsible for investing $3 trillion on behalf of more than 15.6 million Australians. The FSC promotes best practice for the financial services industry by setting mandatory Standards for its members and providing Guidance Notes to assist in operational efficiency. The FSC’s mission is to protect and enhance confidence in a strong, sustainable financial services sector that serves Australians with integrity.