ASIC has released a report on its review of fee and cost disclosure practices in the superannuation and managed investment industry.

In seeking to understand why there is significant variation in the disclosure of fees and costs by superannuation and managed investment product issuers the Report identifies key issues including non-disclosure of fees and costs relating to investment in underlying investment vehicles, incorrectly disclosing fees net of tax, inconsistent disclosure of performance fees and incorrect treatment of some management costs as transaction costs. It also identified inconsistency in disclosure relating to insurance and insurance costs.

ASIC has already published its views as to the disclosure required in Regulatory Guide 97 Disclosing fees and costs in PDSs and periodic statements (RG 97) and in Information Sheet 197 Fee and cost disclosure requirements for superannuation trustees (INFO 197).