Super fees to become more transparent, easier to understand

ASIC implements reforms aimed at improving access to superannuation information.

ASIC making super fees transparent

The Australian Securities and Investments Commission (ASIC) is initiating reforms that are designed to make superannuation fees more transparent and easier to understand.

From 30 September, there will be significant changes to the way superannuation and managed investment funds disclose the fees and charges that impact consumers.

The new requirement comes in the wake of ASIC’s identification of under-reported fees, as well as considerable inconsistency in the way fees and charges are being listed by the funds.

ASIC said these shortcomings have made it very difficult for consumers to understand how much they are paying, what they are paying for and how to compare funds.

The hope is that these changes will bring industry-wide consistency to the disclosures that must be included in the product disclosure statement (PDS), and will help ensure that the information found in the PDS and in periodic statements are more closely aligned.

“As a result, consumers will be better able to understand the fees and costs. The consistency and more accurate disclosure of fees will also help ensure that funds are competing more fairly,” ASIC said.

ASIC also noted that the fees consumers are being charged may reflect the type of investment, with some higher cost investments also bringing higher returns in the long term. This change to reporting will also make it easier for consumers to identify when this is the case.

“ASIC has agreed to extend the deadline for disclosure of property operating costs in the investment fee or indirect costs to 30 September 2018. The extension on this component will help provide additional time for discussions between ASIC and industry about how to calculate these fees,” ASIC said.

ASIC has also extended the deadline for certain disclosures in periodic statements that require modifications to the internal systems of funds.

“This is to ensure the change can be made in a cost effective manner. Those requirements will have effect for annual statements for the year ending 30 June 2018,” ASIC said.

Do you understand the fees and charges on your superannuation account? What could be done to make them easier to understand?



    To make a comment, please register or login
    29th Aug 2017
    I'm in an industry fund my fees are great.
    29th Aug 2017
    Smart move Tib ;-)
    29th Aug 2017
    Smart move Tib ;-)
    29th Aug 2017
    YES Tib a Industry fund for me, any thing else and you will get screwed .If fees were easy to understand people would not be over charged clever people these so called private companies so loved by the Liberal party, perhaps they are mates.
    Old Geezer
    29th Aug 2017
    Nothing but a SMSGF for me. Industry funds have too many fees and don't make a decent return.

    29th Aug 2017
    Its the net return that matters

    Would you pay 3% for a 10% return or .025% for a 5% return. Just saying

    But transparent fees is of course a good thing
    31st Aug 2017
    What about .025% from 11.25% and that isn't high risk. Also when the market falls I will be losing -5% + -.25%. While your return will be -5% +-3%. Also if your manager is making high risk investments it will be more. Just one other thing most managers are not performing as well as industry funds.

    Join YOURLifeChoices, it’s free

    • Receive our daily enewsletter
    • Enter competitions
    • Comment on articles

    You May Like