ASIC seeks more evidence on fee
The Australian Securities and Investments Commission (ASIC) has stopped short of allowing responsible entities (REs) to negotiate exit fees with individual retail investors.
ASIC has revealed its position at the same time as releasing a new legislative instrument regarding differential fees.
While receiving submissions supporting the proposal to enable REs to negotiate with retail investors, the regulator said it had not received enough evidence to convince it to pursue such a move.
It said it had received two submissions which generally supported extending relief to permit responsible entities to individually negotiate fees with retail clients.
“However, given the limited consultation feedback on this item and the lack of information about the impacts of this change, we decided not extended this relief at this stage by a legislative instrument but are open to further submissions,” the ASIC announcement said.
It said submission comments had also focused on whether relief for members that carry out transactions electronically should be retained but stated that it did not consider this relief necessary as it would be open to all members equally to transact electronically.
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