The class order, which ASIC consulted on in September 2014, addresses:

• Disclosure of costs of investing in interposed vehicles
• Disclosure of indirect costs
• Removal of doubt that double counting of some costs for superannuation products is not required, and
• The appropriate application of the consumer advisory warning.

The class order will apply to all PDS for superannuation and managed investment products from 1 January 2016. It will also apply to periodic statements that must be given for these products by 1 January 2017 or later.

Commissioner Greg Tanzer said, ‘For consumers to make effective decisions about their investments and superannuation they need information they can trust and that allows them to compare across products. These changes will help industry to improve the quality of their disclosure and promote consistency between products.

‘Consumers can have more confidence that industry is disclosing fees and costs more accurately and in the same manner, ensuring comparisons between products are made on the same basis.’

The post ASIC class order clarifies fee and cost disclosure requirements appeared first on AdviserVoice.

Greg Tanzar

BT Financial Group (BT) will refund customers after it discovered that some of its Wrap and SuperWrap customers have been paying adviser fees in excess of disclosed percentage ranges. In some cases, there was confusion around whether the percentage ranges disclosed represented the maximum adviser fees that could have been charged.

BT discovered the problem, self reported to ASIC of their own accord and have kept ASIC informed.

BT undertook a review to identify customers potentially impacted, and to ensure that they were compensated where appropriate. BT has also issued revised disclosure and put in place strengthened operational controls to prevent similar occurrences in the future.

ASIC Commissioner Greg Tanzer said: ‘One of ASIC’s priorities is to work to ensure consumers can have confidence in their financial institutions. It is important financial services companies charge customers the fees they have advertised and disclosed, and where this hasn’t occurred, we expect errors to be swiftly rectified.’

‘We have also written to all platform operators to remind them of their significant breach reporting obligations’.

ASIC acknowledges the cooperative approach taken by BT in this matter.

Since May 2013, BT has been contacting affected customers and, where appropriate, compensating them. BT’s review and remediation process continues.

All customers affected will be advised of any compensation by August 2013. There is no need to lodge a claim, but customers who are concerned and want to discuss the matter can contact the BT Customer Relations team on 1800 812 600.

The post BT to refund customers after review of fees disclosed and charged appeared first on AdviserVoice.