ASIC’s latest proposed changes to superannuation fee disclosure have failed to provide transparency around fees and costs in super funds and managed investment schemes, according to Industry Super Australia.
The body provided input on the regulator’s intended modifications to Regulatory Guide 97, saying the proposal does not fully address the complexity of fee disclosure, leaving consumers unable to make informed decisions based on cost comparisons.
Industry Super has suggested ASIC take on a disclosure regime centered around a ‘net returns measure’, incorporating the effect of fees and costs.
It has also strongly opposed the regulator’s exemption of platforms and real estate investment trusts (REITs).
“The current proposal by ASIC only serves to reinforce the inconsistent and confusing fee disclosure structure – whereby platforms owned by banks and investment managers would only be required to disclose the cost of gaining access to a product, not the cost charged by those issuing the product,” Bernie Dean, chief executive, Industry Super said.
“This means consumers may believe these products are less expensive, while unaware they will then have to pay additional fees and charges on top of what has already been disclosed.
“Under the current ASIC proposal, all consumers will benefit from is empty rhetoric and more confusion.”
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