The corporate regulator has extended the transition period for trustees of superannuation funds and responsible entities of managed funds and other managed investment schemes to comply with updated fee and cost disclosure requirements in relation to product disclosure statements (PDSs).
The Australian Securities and Investments Commission (ASIC) said the extension period to 30 September, 2017, would be for issuers that notified ASIC in writing by 31 January, 2016, that they intended to take advantage of the extension in relation to a PDS.
The issuers would also need to provide before 1 March, 2017 information about the fees and costs required to be included in the PDS had they complied with the updated fees and costs disclosure requirements.
The Association of Superannuation Funds of Australia (ASFA) welcomed the extension and said it was a reasonable approach to compliance timelines, given the implementation issues the industry was facing.
ASFA chief executive, Martin Fahy, said: “This is a complex and detailed area of regulation, which is proving difficult to apply in some areas and where there are still some uncertainties”.
“This extension is a practical and welcome response from ASIC and will greatly assist the industry to increase transparency,” he said.
The Financial Services Council (FSC) also welcomed the extension with its chief executive, Sally Loane, noting that it was important for consumes to have access to the most accurate fee information to help make informed investment decisions.
“The FSC has campaigned for this extension to allow product providers time to present the required data in a uniform way and facilitate better like-for-like product comparison, as the regulations have always intended,” she said.
ASIC said issuers that did not want to use the extension date would have to comply with the updated requirements by 1 February, 2017.
ASIC Commissioner, Greg Tanzer, said: “ASIC is committed to ensuring that fees and costs disclosure is accurate, and provided on a consistent basis, to assist consumers when making decisions about their superannuation and managed investments”.
“We have agreed to an extension of the transition period to ensure that consumers can rely on more accurate information when issuers comply with our guidance,” Tanzer said.
