RG97 report finds it’s difficult for consumers to compare fee information

A report into the RG97 fee disclosure rules has found that it is difficult for consumers to compare fees for financial products, but the report has been welcomed by the superannuation and financial services industry.

Shortly after ASIC’s Regulatory Guide 97: Disclosing fees and costs in PDSs and periodic statements rules came into effect in 2017 the regulator announced it had asked for a review of RG97.

ASIC this week released a report, prepared by Darren McShane, which finds that it is difficult for consumers to compare fees. Read more...

ASIC appoints head of RG 97 review, expects report first half 2018

ASIC has announced the appointment of Darren McShane will head up the review of newly introduced super fund fee and cost disclosure rules.

Regulatory Guide 97: Disclosing fees and costs in PDSs and periodic statements (RG 97) came into effect on 1 October 2017. In early November ASIC announced that the rules would be reviewed.

“The aim of the this review is to ensure that legislative modifications and regulatory guidance issued by ASIC will best meet in practice the objective of improving fees and costs transparency for consumers,” said ASIC. Read more...

ASIC to review RG 97 super fund fee disclosure rules

ASIC has announced a review of the recently implemented RG 97 rules for disclosing super fund fees and costs.

ASIC’s Regulatory Guide 97 Disclosing fees and costs in PDSs and periodic statements took affect on 1 October 2017.

The regulator says it will work with an external expert to conduct a review of RG 97, “to ensure that it is best meeting in practice the objective of greater transparency for consumers”.

This external expert will consider the impact of RG 97, liase with industry and make recommendations. This process is expected to be completed in the first half of 2018. Read more...

Super fund fees ‘jump’ after new rules, but members shouldn’t worry

Average superannuation fund fees have ‘jumped’ following the introduction of new disclosure rules, but this is nothing for fund members to worry about says Chant West.

The average super fund fee increased by 0.19% – from 0.95% to 1.14% – following the introduction of ASIC’s Regulatory Guide 97 (RG97) rules. All this increase came from the ‘investment fee’ component, not the administration fee.

However Chant West, which complied the figures, says super fund members shouldn’t worry about this increase. Read more...

Consumers rate fees as most important when choosing a super fund

New research indicates consumers rate fees as the most important factor when choosing a superannuation fund, at a time when changes to disclosure rules may be making fee reporting less reliable.

Asked what mattered to them most when selecting a super fund 74% of those surveyed said fees were either extremely important or very important, followed by 64% answering history of returns and 60% investment flexibility.

The survey was conducted by UMR and commissioned by Industry Super Australia – which has been arguing for a delay in the change to fee disclosures which came into effect on 1 October 2017. Read more...

Government has only days to stop RG97 super fund ‘fee-asco’

The Government has only days to step in and stop a ‘fee-asco’ in super fund disclosures.

New fee and cost disclosure rules for super funds apply from 1 October, under ASIC’s Regulatory Guide 97 (RG97).

Industry Super Australia says these new fee disclosure rules are “fundamentally flawed”, create risks for investors and give “substantial advantage” to some super funds over others.

Related: ‘Significant changes’ to super fund fee disclosure coming, says ASIC

An analysis of the new RG97 rules by SuperRatings, commissioned by ISA, finds that the different disclosure requirements for platforms could mean investors are mislead to believe a super fund using platforms is cheaper when it was actually more expensive than other super funds. The analysis finds a non-platform super fund could look four times as expensive compared to a platform-using fund, even when it is actually has lower costs. Read more...

Impossible to compare super funds under new fee disclosure rules

New superannuation fee disclosure rules will make it impossible for consumers to compare super fund fees and costs, says Industry Super Australia.

Industry Super Australia (ISA) says that ASIC’s new Regulatory Guide 97 (RG97) was designed to inject greater transparency into the, “often murky”, fees and costs that are “unwittingly borne by consumers”. However the industry group says the new rules will make it impossible for consumers to compare funds, and give a “leg up” to ‘bank-owned’ and other retail super funds, by not capturing investment platforms – which contain over half a trillion dollars of superannuation assets. Read more...

ASIC updates super fund fee disclosure guidance

ASIC has updated its guidance on the requirements for superannuation funds to disclose fees and costs.

“These measures will assist trustees and responsible entities in ensuring that the fees and costs disclosed to investors are accurate and that fees and costs are disclosed more consistently across the industry,” said ASIC.

“Accurate and consistent fees and costs disclosure is extremely important for consumers when making decisions about their superannuation and managed investments,” said ASIC Commissioner Greg Tanzer. Read more...