In response to concerns raised by industry associations about the reliability of information provided, on Tuesday 29 November 2016, the Australian Securities and Investments Commission (ASIC) announced an extension of the transition period for superannuation trustees and responsible entities to comply with updated fee and cost disclosure requirements.
ASIC has had to respond to strong resistance from the industry and the transition period will now end by 30 September 2017 for issuers that notify ASIC in writing by 31 January 2017. Issuers that do not want to take advantage of the extension will need to comply with the updated requirements by 1 February 2017.
The emphasis from the ASIC is to ensure greater transparency is provided to consumers about the fees and costs and the extension is in acknowledgement of the importance of providing reliable information that will assist consumers in comparing fees and costs.
AISC will be amending ASIC class order 14/1252 ‘Technical modifications to Schedule 10 of the Corporations Regulations’, to give the extension effect shortly. The extension does not provide an exemption from the requirements that apply under the Corporations Regulations, or the requirement for the issuers not to make misleading of deception statements about their products.
In light of these changes, and in order to fully support its clients in effectively managing the transition process, Apex is evolving its service to deliver specific transparent fee reporting solutions to institutional investors and Fund of Funds.
Apex encourages trustees and RE’s to continue to work to complete the amendments as early as possible and will support this process, as even though there is an extension, the summary of change is due on or before 1 March.
Important Dates to be Aware of:
31 January 2017: If you intend to take advantage of the extension you must notify ASIC in writing by this date.
1 February 2017: If you do not notify ASIC by January you will be required to fully comply with the updated requirements by February.
1 March 2017: All information about fees and costs in relation to a PDS must be provided to ASIC by this date.
30 September 2017: Transition will be completed.
For more please contact one of the Apex Australia office’s: Sydney Melbourne
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