ASIC has issued a further updated guide for issuers of superannuation and managed investment products to help them comply with the Corporations Amendment Regulations
2005 (No. 1) (the enhanced fee disclosure regulations).
The revised Enhanced fee disclosure regulations: Questions and Answers – an ASIC Guide answers commonly asked questions about compliance with the regulations.
The enhanced fee disclosure regulations include
measures on the disclosure of transactions and fees and costs in
product disclosure statements (PDSs). These provisions require PDSs for
certain investment-linked financial products to include:
- a standardised fee template (with accompanying explanation);
- an example of annual fees and costs for a balanced or similar fund; and
- a boxed consumer advisory warning.
The regulations applied to PDSs for superannuation
products from1 July 2005 and for other financial products, including
managed investment products, from 1 July 2006. The regulations also
mandate certain transactional disclosures in periodic statements of
product issuers of superannuation products (from 1 July 2006) and of
managed investment products (from 1 July 2007).
On 26 March 2007, Treasury released for comment
draft Corporations Amendment Regulations that proposed extending the
enhanced fee disclosure regime to investment life insurance policies. A
date for the commencement of the regulations is yet to be announced.
