New fee disclosure model out

A revised version of the good practice model for fee disclosure in the product disclosure statements of investment products of investment products has been released.

"The new model improves access by investors to clear, concise and comprehensive information about the fees and costs they will incur for an investment product," ASIC executive director of financial services regulation Ian Johnston said.

"The improvements have been made following stakeholder consumer testing of the initial version of the good practice model and a further consultation process with industry stakeholders."

The main changes are;

• A single "see at a glance" table containing a reference to all fees and costs, both direct or indirect and stated in dollars or translated to dollar terms;
• Simpler terminology to aid consumer comprehension; and
• Clarification of ASIC’s expectations for use of the model, including what should be included in the Important Additional Information section following the table.