ASIC has extended the transition period for trustees of superannuation funds and responsible entities of managed funds and other managed investment schemes (issuers) to comply with updated fee and cost disclosure requirements in relation to product disclosure statements (PDSs).
The transition period will now end by 30 September 2017 for issuers that notify ASIC in writing by 31 January 2017 that they intend to take advantage of this extension in relation to a PDS, and provide ASIC, before 1 March 2017, information about the fees and costs that would be required to be included in this PDS had they complied with the updated fees and costs disclosure requirements.
Issuers that do not want to take of advantage of this extension will have to comply with the updated requirements by 1 February 2017. Any issuer that has already adopted the updated requirements will not be required to provide ASIC this information.
ASIC has extended the transition period in response to applications from industry associations which had raised concerns that information provided for some products by an earlier date may not be reliable and may not assist consumers in comparing fees and costs.
ASIC intends to use the information to check that the issuers are taking reasonable steps towards compliance and to identify whether the disclosures indicate any likely non-compliance.
The extension of transition does not provide an exemption from the requirements that apply under the Corporations Regulations, unamended by [CO14/1252] or the requirement for the issuers not to make misleading or deceptive statements about their products. The extension does not apply in relation to periodic statements.
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.
ASIC will continue our extensive engagement with industry during the extended transition period to assist industry in its implementation of these measures.
For the full announcement, click here.