Fee disclosure report vindicates concerns, AIST says
The Australian Institute of Superannuation Trustees (AIST) has welcomed the release of a comprehensive report into the fee and cost disclosure regime for super funds, stating that the report vindicated many of its concerns.
AIST chief executive Eva Scheerlinck said the report, which was prepared by independent expert Darren McShane at the request of the Australian Securities and Investments Commission (ASIC), acknowledged the challenges and inconsistencies within the existing regime, but more importantly, recommended a framework that would apply more rigour to decision-making on fee and cost disclosure.
Scheerlinck also welcomed the report’s acknowledgement of the complexities involved in disclosure and its recommendations for ASIC to introduce comparative tools to better support consumers in their decision-making, including a recommendation for the regulator to explore the development of a user-friendly online portal to allow individuals to compare fees and costs.
“We welcome recognition that consumers need more tools to easily compare fees and costs,” she said. “Disclosure must not only be meaningful, it must be accessible and not hidden in the back pages of a website.”
Scheerlinck said AIST has been actively involved in the industry-wide consultation process on fee and cost disclosure for more than four years, and looked forward to reviewing the findings in detail with ASIC and other key stakeholders.
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