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RG 97 review and consultation

½ñÈÕÈÈÃÅʼþreleased Consultation Paper 308 Review of RG 97 Disclosing fees and costs in PDSs and periodic statements (CP 308) on 8 January 2019.

This consultation followed an external review on fees and costs disclosure. On 28 November 2017, ½ñÈÕÈÈÃÅʼþappointed Mr Darren McShane to undertake an external expert review of the fees and costs disclosure regime relevant to superannuation and managed investment products. Mr McShane engaged with more than 120 industry stakeholders and considered approaches to fees and costs disclosure in other jurisdictions for comparison.

On 24 July 2018, ½ñÈÕÈÈÃÅʼþreleased Mr McShane’s Report 581 Review of ½ñÈÕÈÈÃÅʼþRegulatory Guide 97: Disclosing fees and costs in PDSs and periodic statements (REP 581). REP 581 contains 34 recommendations and observations. It concludes that changes to the fees and costs disclosure regime would be advantageous, and includes discussion of:

• the way fee and cost information is presented to consumers, and
• some of the information to be included in this disclosure.

On 8 January 2019, ½ñÈÕÈÈÃÅʼþreleased Consultation Paper 308 Review of RG 97 Disclosing fees and costs in PDSs and periodic statements (CP 308), proposing to accept most ofÌýMr McShane’s recommendations and seeking feedback on a draft updated RG 97 and Schedule 10. In preparing CP 308, ½ñÈÕÈÈÃÅʼþcarefully considered REP 581 as well as the feedback provided by industry to Mr McShane during his review.

As part of the consultation process, after the issue of CP 308 ½ñÈÕÈÈÃÅʼþheld roundtable meetings at ASIC's Sydney and Melbourne offices on 4 and 5 March 2019. Approximately 120 stakeholders attended the roundtable meetings.

½ñÈÕÈÈÃÅʼþalso commissioned consumer research during the consultation period to test whether the proposed fees and costs templates and wording changes helped consumers more easily understand and compare fees and costs.

Consultations closed on 2 April 2019. ½ñÈÕÈÈÃÅʼþreceived 35 submissions from stakeholders including industry and consumer research bodies, responsible entities, superannuation trustees and service providers. See the submissions.

In June 2019 ½ñÈÕÈÈÃÅʼþamended to ensure it was consistent with Treasury Laws Amendment (Protecting Your Superannuation Package) Act 2019 and Regulations (PYSP), which in the context of fees and costs ban exit fees from 1 July 2019 for superannuation products. This was a technical amendment which eliminates the exit fee line from the fees and costs disclosure template.ÌýSee media release 19-149MR.

We have carefully considered the submissions, the results of our consumer testing and undertaken limited further stakeholder consultation to finalise our response to the proposals. Report 637 Response to submissions on CP 308 Review of RG 97 contains details about feedback received on the proposals in CP 308 and our response.

Read:

• Consultation Paper 308 Review of RG 97 Disclosing fees and costs in PDSs and periodic statements
• 19-002MRÌý½ñÈÕÈÈÃÅʼþreleases consultation paper on reform of fees and costs disclosure for superannuation and managed investment schemes
• Report 637 Response to submissions on CP 308 Review of RG 97
• Report 638 Consumer testing of the fees and costs tools for superannuation and managed investment schemes
• RG 97 Disclosing fees and costs in PDSs and periodic statements
• 19-328MRÌý½ñÈÕÈÈÃÅʼþreleases updated RG 97 on fees and cost disclosure