If you’ve been confused about the fees and charges you’re billed for your superannuation fund, the Australian Securities and Investment Commission (ASIC) has stepped in to enforce some major changes.
Come September, the entire industry will be forced to comply with ASIC’s orders to make their superannuation product disclosure statements easier to understand.
In a bid to stop superannuation funds from continuing to confuse consumers with their fee structures, from 30 September, ASIC will enforce significant changes to the way super funds present fees and charges.
In 2015, ASIC looked closely at the super industry and found many funds were under-reporting fees. It also found there were irregularities with how those fees were depicted.
The regulator also found that as many funds were under-reporting their charges and fees, many consumers had no idea about how much their super fund was really costing them. As a result of the unreliable nature of how fees were reported, ASIC also found this made it near impossible for people to compare super products side-by-side with any kind of accuracy.
ASIC will enforce the regulations, including what information must be included on the funds’ product disclosure statements (PDS), on to the entire superannuation fund industry by the end of next month.
In late 2018, further regulations will come into place that will impose not only what information is included in the PDS but how it’s presented.
“As a result, consumers will be better able to understand the fees and costs,” a statement from ASIC read.
“The consistency and more accurate disclosure of fees will also help ensure that funds are competing more fairly.”
Managed funds and superannuation funds will have to adhere to the new regulations and ASIC plans to conduct compliance checks to ensure the entire industry is complying.