RG 97 review and consultation

ASIC released Consultation Paper 308 Review of RG 97 Disclosing fees and costs in PDSs and periodic statements (CP 308) on 8 January 2019.

This consultation followed an external review on fees and costs disclosure. On 28 November 2017, ASIC appointed Mr Darren McShane to undertake an external expert review of the fees and costs disclosure regime relevant to superannuation and managed investment products. Mr McShane engaged with more than 120 industry stakeholders and considered approaches to fees and costs disclosure in other jurisdictions for comparison.

On 24 July 2018, ASIC released Mr McShane’s Report 581 Review of ASIC Regulatory Guide 97: Disclosing fees and costs in PDSs and periodic statements (REP 581). REP 581 contains 34 recommendations and observations. It concludes that changes to the fees and costs disclosure regime would be advantageous, and includes discussion of:

the way fee and cost information is presented to consumers, and
some of the information to be included in this disclosure.

On 8 January 2019, ASIC released Consultation Paper 308 Review of RG 97 Disclosing fees and costs in PDSs and periodic statements (CP 308), proposing to accept most of Mr McShane’s recommendations and seeking feedback on a draft updated RG 97 and Schedule 10. In preparing CP 308, ASIC carefully considered REP 581 as well as the feedback provided by industry to Mr McShane during his review.

As part of the consultation process, after the issue of CP 308 ASIC held roundtable meetings at ASIC's Sydney and Melbourne offices on 4 and 5 March 2019. Approximately 120 stakeholders attended the roundtable meetings.

View a copy of the slides from ASIC's presentation at the roundtable meetings (PDF 1.05 MB)

ASIC also commissioned consumer research during the consultation period to test whether the proposed fees and costs templates and wording changes helped consumers more easily understand and compare fees and costs.

Consultations closed on 2 April 2019. ASIC received 35 submissions from stakeholders including industry and consumer research bodies, responsible entities, superannuation trustees and service providers. See the submissions.

In June 2019 ASIC amended Class Order 14/1252 to ensure it was consistent with Treasury Laws Amendment (Protecting Your Superannuation Package) Act 2019 and Regulations (PYSP), which in the context of fees and costs ban exit fees from 1 July 2019 for superannuation products. This was a technical amendment which eliminates the exit fee line from the fees and costs disclosure template. See media release 19-149MR.

We have carefully considered the submissions, the results of our consumer testing and undertaken limited further stakeholder consultation to finalise our response to the proposals. Report 637 Response to submissions on CP 308 Review of RG 97 contains details about feedback received on the proposals in CP 308 and our response.

Read:

Consultation Paper 308 Review of RG 97 Disclosing fees and costs in PDSs and periodic statements
19-002MR ASIC releases consultation paper on reform of fees and costs disclosure for superannuation and managed investment schemes
Report 637 Response to submissions on CP 308 Review of RG 97
Report 638 Consumer testing of the fees and costs tools for superannuation and managed investment schemes
RG 97 Disclosing fees and costs in PDSs and periodic statements
19-328MR ASIC releases updated RG 97 on fees and cost disclosure