Guidance for after-tax reporting
The Investment and Financial Services Association (IFSA) has set up a working group to develop a ‘guidance note’ to enable members that want to publish after-tax returns to calculate these returns on a consistent methodological basis.
IFSA provides both ‘standards’ and ‘guidance notes’ for member funds, designed to inform members about industry best practice around certain areas. The decision to develop the after-tax reporting guidance note emerged during the recent production by an IFSA working group of a ‘standard’ dealing with ‘performance reporting’ by member funds.
“It was raised a number of times by members of this working group whether we should also be looking at creating a ‘guidance note’ for after-tax reporting,” according to IFSA chief executive Richard Gilbert.
IFSA subsequently decided to create a working group to “pool member thoughts on putting together a guidance note that would provide a consistent methodology for fund members wanting to report after-tax returns”.
Gilbert emphasised the guidance would not be binding on members in the same way a ‘standard’ is, and also that it is “still early days” in the development of the guidance note.
“What we are intending is to develop a guidance note whereby if a member does want to report performance on an after-tax basis this is a methodology that would be appropriate.
“We want after-tax reporting to be consistent and meaningful for the end-investor, and naturally if you have lots of companies using different methodologies it reduces the comparability.”
Recommended for you
ASIC’s court case with Interprac is causing advisers to explore the possibility of self-licensing, according to My Dealer Services, as they observe the reputational damage it can bring to a practice.
AZ NGA has entered a strategic partnership with a Sydney advice firm with $600 million in assets under advice to support its succession plans and future growth.
With complaints on the rise and an expanded jurisdiction, the Australian Financial Complaints Authority is on the hunt for four C-suite roles, three of which are newly-created positions.
Ahead of the 1 January 2026 education deadline for advisers, ASIC has issued its ‘final warning’ to the industry, reporting that more than 2,300 relevant providers could be on their way out.
