Associations seek common ground on fee disclosure
TheAssociation of Superannuation Funds of Australia(ASFA) and theInvestment and Financial Services Association(IFSA) had “constructive” talks on Friday and will meet again later this week in a bid to thrash out a mutually agreeable single fee disclosure model.
The two peak industry associations have until April 10 to agree before presenting to Government, following Parliamentary Secretary to the Treasurer, Ross Cameron writing to IFSA and ASFA two weeks ago as part of the Government’s bid to resolve the deadlock over single fee disclosure on superannuation and investment products.
ASFA chief executive Philippa Smith says while Friday’s meeting was highly constructive, she cannot add much more at this point beyond revealing the two associations would meet again this Friday and try to agree upon a model.
Smith says despite the impending deadline, the Government can expect combined recommendations from it and IFSA, which it can then prepare regulations for to incorporate the model within disclosure documents by July 1 - the date by which fees must be disclosed under the Financial Services Reform Act.
The correspondence sent by Cameron indicated that in the event the industry groups cannot agree on a model the Government will take action with what it deems is an appropriate disclosure model for the protection of consumers.
“I expect that through constructive industry engagement we will be able to achieve an enhanced fee disclosure model and, in particular better consumer comprehension and comparability of competing products,” Cameron said in the statement.
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