ASIC conned again........what’s the point in having regulators?
ASIC falls on fund disclosure sword
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Wednesday, 30 November 2016 1:02pm By Darren Snyder |
http://www.financialstandard.com.au/news/view/90357445
ASIC has bowed to superannuation industry lobbying and extended the transition period for funds to comply with updated fee and cost disclosure requirements under RG97.
In September, ASIC Commissioner Greg Tanzer told the Australian Superannuation Investment (ASI) conference that the regulator previously knocked back industry requests to extend the 2017 deadline for new super fund disclosure requirements because it believed the established 18-month transition period was sufficient.
However ASIC has confirmed it will extend the transition period by seven months to 30 September, provided that super funds wishing to use extension notify the regulator by 31 January, 2017. ASIC said it extended the transition period in response to applications from industry associations.
In a statement Tanzer reminded the associations there has been a significant transition period to comply and made it clear this extension is final.
"ASIC is committed to ensuring that fees and costs disclosure is accurate, and provided on a consistent basis, to assist consumers when making decisions about their superannuation and managed investments," he said.
"We have agreed to an extension of the transition period to ensure that consumers can rely on more accurate information when issuers comply with our guidance. ASIC will continue our extensive engagement with industry during the extended transition period to assist industry in its implementation of these measures," Tanzer said.
Several super industry groups have welcomed the extension, including the Financial Services Council which said it is "pleased with the regulator's pragmatic decision to extend the time allowed for fund managers and superannuation funds to transition to the new fees and costs disclosure regime arising from RG97."
FSC chief executive Sally Loane said: "It is important consumers have access to the most accurate fee information to inform their investment decisions. The FSC has campaigned for this extension to allow product providers time to present the required data in a uniform way and facilitate better like-for-like product comparison, as the regulations have always intended."
Earlier this month the FSC and other industry groups were part of a forum in Sydney that discussed several regulatory issues and RG97 was high on the agenda.
Australian Institute of Superannuation Trustees senior policy adviser Karen Volpato said the extension "will provide the industry time to collaboratively continue development of industry guidance, and also work to ensure a level playing field on disclosure in the interests of consumers."
"However, we remain disappointed that the exclusion of certain platforms will mean that consumers are insufficiently protected, and that system competitiveness and efficiency cannot be properly assessed," she said.
Association of Superannuation Funds of Australia chief executive Dr Martin Fahy applauded ASIC for adopting a reasonable approach to compliance timelines, given the implementation issues the industry is facing.
"This is a complex and detailed area of regulation, which is proving difficult to apply in some areas and where there are still some uncertainties. This extension is a practical and welcome response from ASIC and will greatly assist the industry to increase transparency," Fahy said.