Intra-fund advice fees will be rolled up into administration fees and costs under key changes to Regulatory Guide 97 (RG 97) released by the Australian Securities and Investments Commission (ASIC) today.
The changes will also see a separation of ongoing annual fees and costs and member activity related to fees and costs.
Announcing the changes, ASIC commissioner, Danielle Press said the updated guidance on fees and cost disclosure for issuers of superannuation and managed investment products was intended to help consumers and their financial advisers better understands fees and costs and more easily compare products.
Press also foreshadowed that ASIC would be separately undertaking work on fees and costs disclosure on platform arrangements next year and work with industry bodies to clarify how financial advisers should use fees and costs information when giving advice.
ASIC outlined the key changes with respect to RG 97 as being:
It said that, as well, the guidance and associated legislative instrument had been drafted to make the regime more practical for industry and promote compliance by issuers with their legal obligations.
Financial advice is having a significant impact on how Australians are engaging with the more complex aspects of their superannuation, new findings have shown.
While the Financial Advice Association Australia said it supports a performance testing regime “in principle”, it holds reservations about expanding this scope to retirement products.
In a Senate submission, the Financial Services Council said super funds should be able to nudge members on engaging with their super and has cautioned against default placements.
The Joint Associations Working Group, which counts FSC in its ranks, has issued an urgent warning to the government.
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