ASIC has extended its “facilitative compliance approach” to Regulatory Guide 97 Disclosing fees and costs in PDSs and periodic statements and will engage an “external expert” to conduct a review of the new regime.
The announcement from the regulator comes after Industry Super Australia labelled the new disclosure rules as “inequitable” and carve-outs to retail investment platforms as “inexplicable”.
Industry consultant Rice Warner also said RG 97 would create the “appearance” of higher fees to members that would create a “marketing challenge” to super funds.
“ASIC is undertaking these actions in response to feedback from across the industry around challenges with the practical implementation of RG 97,” the regulator said.
Industry super lobby group the Australian Institute of Superannuation Trustees (AIST) welcomed the announcement.
AIST chief executive Eva Scheerlinck said, “It’s great to see that ASIC has taken on board industry feedback on RG 97 and recognises the importance of the issues we have raised.”
Ms Scheerlinck said AIST raised concerns that RG 97 was “overly complex” and treated certain asset classes differently.
Rice Warner previously warned that unlisted assets, which are commonly held by industry funds, would be “hardest hit” by the new fee disclosure rules.
