There’s about to be a change in the way superannuation and managed investment funds disclose their fees and charges.
From 30 September, funds will have to follow an industry-wide standard regarding what must be included in the product disclosure statement (PDS).
And from later in 2018, the changes will also ensure that the information in PDSs and in periodic statements will match more clearly.
These reforms have two aims:
- Make it easier for consumers to understand fees and charges
- Force funds to compete more fairly
Regulator wants apples for apples
ASIC, the financial services regulator, said it pushed for the reforms after finding “a significant amount of under-reporting of fees” and “considerable inconsistency in the way fees and charges are listed by funds”.
“ASIC found this made it very difficult for consumers to understand how much they were paying, what they were paying for, and to compare funds,” it said.
The regulator plans to undertake compliance checks throughout the industry, to ensure funds meet their obligations.