ASIC response: Emails reveal funds found ASIC favour

Response to Sydney Morning Herald article, 'Emails reveal funds found ASIC favour' by Michael West, page 21

9 December 2013
Letters to editor
'Sydney Morning Herald'
Delivery by email: smhlettersmail@smh.com.au

ASIC rejects the suggestion it has provided businesses with an exemption from having to disclose fees and charges ( 'Emails reveal funds found ASIC favour', December 9).

This is incorrect. The law requires that product issuers clearly disclose the fees and charges that a consumer pays in relation to the particular product they are considering. This must be disclosed in the product disclosure statement or statement of advice. This is a long-standing cornerstone of financial regulation.

The narrow exemption referred to, and which was given in 2005, applies only to generic online calculators which do not promote any particular financial product that the investor may be considering.

Generic calculators can provide a useful tool for helping consumers understand the impact of returns and fees on their investment or the impact of increasing repayments on loans. They can improve consumer engagement and financial literacy, and it is important that consumers continue to have access to what can be useful, educational tools. They can help consumers to better understand their financial circumstances.

Greg Tanzer, Commissioner, Australian Securities and Investments Commission

This letter was not published.