ASIC will not oppose shelf space charges
The investment watchdog will not stand in the way of any financial planning group or master trust operator who charges fund managers a fee to appear on their recommended list.
Disclosure is the key point for master trust operators and dealer groups which charge for putting fund managers on their approved lists, says ASIC director financial services regulation Shaun Hughes.
“There is no problem with a fee being charged, but it should be disclosed,” he says.
The move by Navigator to charge fund managers to appear on their managed fund menu to cover research costs infuriated a few fund managers who interpreted the move as akin to the supermarket’s practice of charging for shelf space.
While no planner group has charged a fund manager yet, Money Management understands a couple of groups are looking at the opportunity to derive some more revenue from the managers.
“There is nothing in the legislation to stop planners from charging,” Hughes says.
“However, we would be interested in how the financial planner put together their recommended list and which products were suitable.
“Charging fees would also raise some compliance issues which the planner would need to look carefully at.”
AUTHOR
John Wilkinson
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