ASIC response: Investors losing half of returns to fees – research

Response to Sydney Morning Herald article, 'Investors losing half of returns to fees: research' by Michael West, page 31

2 December 2013
Letters to editor
'Sydney Morning Herald'
Delivery by email: smhlettersmail@smh.com.au

Michael West's article ('Investors losing half of returns to fees: research', November 29) conveys the misleading impression that ASIC has done a 'favour' for big business, by exempting large industry players from having to disclose the fees and charges payable for a managed investment or superannuation product.

This is totally incorrect. The law requires that product issuers clearly disclose the fees and charges that a consumer pays in relation to the particular product they are considering. This is a long-standing cornerstone of financial regulation.

The narrow exemption that Mr West refers to in his article applies only to generic online calculators which do not promote any particular financial product that the investor may be considering.

Greg Tanzer , Commissioner, Australian Securities and Investments Commission
This letter was not published.