Issue 777, 24 September 2020
In this issue:
- Fee and cost disclosure: PDS example amended
- COVID-19 Coronavirus: relief for financial advice extended
Fee and cost disclosure: PDS example amended
ASIC has made a minor amendment to its requirements in relation to fee and cost disclosure requirements for superannuation products.
In November, ASIC made the ASIC Corporations (Disclosure of Fees and Costs) Instrument 2019/1070 to give effect to proposals to enhance comparability and transparency about fees and costs of superannuation products and collective investment products. The modifications were accompanied by the release of a restructured and updated version of ASIC Regulatory Guide 97 Disclosing fees and costs in PDSs and periodic statements (see ASFA Action issue 729).
ASIC made some minor amendments to Instrument 2019/1070 in July (see ASFA Action issue 766).
ASIC has now registered the ASIC Corporations (Amendment) Instrument 2020/853 to make a further amendment to its requirements, in relation to the example of annual fees and costs that must be included in superannuation fund Product Disclosure Statements.
In particular, the amendment ensures that where the total amount of administration fees and costs includes an amount that applies regardless of the product holder’s balance, that amount must be disclosed separately.
COVID-19 Coronavirus: relief for financial advice extended
ASIC has extended the duration of temporary relief in relation to financial advice due to the continuing uncertain impacts of COVID-19 and the extension of the Coronavirus early release of superannuation initiative.
In April this year ASIC granted temporary relief to help the industry provide consumers with affordable and timely advice during the COVID-19 pandemic. This included a ‘no-action’ position expanding the scope of personal advice that may be provided by or on behalf of a superannuation trustee as ‘intra-fund advice’ to cover the early release initiative.
The relief also included ASIC Corporations (COVID-19 – Advice-related Relief) Instrument 2020/355, which:
- provided relief from Statement of Advice requirements for personal advice about early access to superannuation
- permitted registered tax agents to give advice to existing clients about early access to superannuation without needing to hold an Australian financial services licence
- allowed advice providers up to 30 business days (instead of 5 business days) to give an SOA after time-critical advice is provided
- enabled a Record of Advice to be provided to existing clients in certain circumstances.
ASIC subsequently registered ASIC Corporations (Amendment) Instrument 2020/565 to set 15 October as the expiry date for the relief covered by Instrument 2020/355. (See ASFA Action issues 759 and 749 for background.)
ASIC has now registered ASIC Corporations (Amendment) Instrument 2020/862, to extend the relief covered by Instrument 2020/355 until 15 April 2021 (instead of 15 October 2020).
ASIC has also amended its no action position for superannuation trustees to extend it until 31 December 2020 to align with the extension of the COVID-19 early release of superannuation scheme.
ASFA REGULATORY WATCHLIST
ASFA’s Regulatory Watchlist (ARW) tracks developments in Legislation, inquiries, consultations
and other regulatory announcements relevant to superannuation.
