ASIC’s new Class Order [CO 14/1252] clarifies fee and cost disclosure requirements for Product Disclosure Statements and periodic statements for superannuation and managed investment products.  Superannuation trustees and responsible entities should familiarise themselves with the new requirements which will apply to all Product Disclosure Statements for superannuation and managed investment products from 1 January 2016.

ASIC has released Class Order [CO 14/1252Technical modifications to Schedule 10 of the Corporations Regulations following a review of fee disclosure practices.  CO 14/1252 clarifies key fee and cost disclosure requirements for Product Disclosure Statements and periodic statements for superannuation and managed investment products and addresses:

  • disclosure of costs of investing in interposed vehicles;
  • disclosure of indirect costs;
  • removal of doubt that double counting of some costs for superannuation products is not required; and
  • the appropriate application of the consumer advisory warning.

The class order will apply to all Product Disclosure Statements for superannuation and managed investment products from 1 January 2016.  It will also apply to periodic statements that must be given for these products by 1 January 2017 or later.

ASIC has also commenced a review of Regulatory Guide 97 Disclosing fees and costs in PDSs and periodic statements (RG 97) to reflect the effect of the Stronger Super reforms and CO 14/1252.

See ASIC media release dated 12 December 2014.