ASIC has issued an updated guide for product issuers to help them comply with the Corporations Amendment Regulations 2005 (No. 1) (the enhanced fee disclosure regulations).

The enhanced fee disclosure regulations introduced requirements for disclosure of fees and charges in Product Disclosure Statements (PDSs) and periodic statements for most superannuation and managed investment products. The guide for product issuers answers some common questions about the enhanced fee disclosure regulations.

 The regulations require PDSs for
certain investment–linked financial products to include:

• a standardised fee template (with accompanying explanation);
• an example of annual fees and costs for a balanced or similar fund; and
• a boxed consumer advisory warning.

The regulations applied to PDSs for superannuation products from 1 July 2005 and other financial products, including managed investment products, from 1 July 2006.

The regulations also mandate certain transactional disclosures in periodic statements of product issuers of superannuation products (from 1 July 2006) and of managed investment products (from 1 July 2007).