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Tuesday 20 December 2016

16-450MR ASIC publishes form for superannuation trustees and responsible entities to provide ASIC information on updated fee and cost disclosure requirements

ASIC has published the form and instructions for trustees of superannuation funds and responsible entities of managed funds and other managed investment schemes (issuers) to provide ASIC information in order to qualify for the extension to the transition period to comply with updated fee and cost disclosure requirements in relation to product disclosure statements (PDSs) as announced on 29 November 2016 (refer 16-412MR).

This applies for issuers that notify ASIC in writing before 1 February 2017 that they intend to take advantage of this extension in relation to a PDS, and provide ASIC, before 1 March 2017, information about the fees and costs that would be required to be included in this PDS had they complied with the updated fees and costs disclosure requirements.

Issuers intending to take advantage of the transition period extension must:

  1. advise ASIC in writing before 1 February 2017 by email to feeandcostdisclosure@asic.gov.au:
    1. identifying themselves and the PDS(s) for which they want extension;
    2. stating that they intend to provide to ASIC written information relating to any relevant superannuation products or relevant investment products to which the Statement relates before 1 March 2017; and
    3. if any financial product to which the Statement relates will not be offered for issue after September 2017, identifying that financial product;
      and
  2. provide ASIC the information using the form published today on the ASIC website (download the form and instructions). The completed form must be emailed to ASIC at feeandcostdisclosure@asic.gov.au before 1 March 2017.

Superannuation trustees are only required to provide information about their generic MySuper product, their largest other investment option and any other investment option with more than $100 million in assets.  ASIC may require information on any other product or investment option and urges issuers to also prepare this information in case it is requested. The information that needs to be provided to ASIC by superannuation trustees by 1 March 2017 does not include borrowing costs.

Responsible entities are only required to provide information about the class of interest in a managed investment scheme with the largest amount of assets compared to other classes in all the schemes that the responsible entity manages, any class of interest that has more than $100m in assets. ASIC may require information on any other class of interest and urges issuers to also prepare this information in case it is requested.

IDPS operators will need to comply with the requirements for responsible entities if they seek extension of transition.

Issuers that do not want to take of advantage of this extension will have to comply with the updated requirements by 1 February 2017. Any issuer that has already adopted the updated requirements or does not have a PDS in use during February 2017 or will not have a PDS on or after 30 September 2017will not be required to provide ASIC this information.

ASIC is amending ASIC class order 14/1252 Technical modifications to Schedule 10 of the Corporations Regulations [CO 14/1252] to give this extension effect. The class order amendment provides that borrowing costs need not be included in fees and costs for a superannuation product but must be separately disclosed in a PDS from 30 September 2017 and includes some other incidental modifications consistent with existing policy.

The amendments to CO 14/1252 will take effect from when the Instrument made is registered shortly, subject to transitional provisions in the amending instrument. We will also make corresponding amendments to Regulatory Guide 97 Disclosing fees and costs in PDSs and periodic statements (RG 97).

ASIC reminds trustees and responsible entities it is their responsibility to ensure that their PDSs comply and preparations should be underway now. There will be no further extensions of the transitional period.

Background

ASIC announced on 29 November 2016 that it had decided to conditionally extend the transitional period for complying with updated disclosure requirements to 30 September 2017.

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Last updated: 20/12/2016 12:47