In September 2020 ASIC amended RG97 to provide guidance on how fees and costs should be disclosed in Product Disclosure Statements (PDSs) and periodic statements.
The purpose of RG97 is to drive transparency and consistency in fees and cost disclosures to help you and your clients better understand fees and costs involved, compare products more easily and make more informed assessments about products.
We are pleased to announce that we’ve enhanced our fee offering to align with the RG97 guidance and provide a more accurate fee calculation relative to client balances.
What is changing?
- AdviserLogic’s Digital Advice, Superannuation, Portfolio, Digital Templates and Docx Templates will use prospective fees as reported in PDS, sourced from fund managers
- In the modules above where you see ICR – it will now include investment management fees, plus performance fees minus super Over The Counter (OTC) derivative costs (where applicable)
- Annual dollar-based fees and the Administration fee will not be included in ICR and will be shown separately in the fee tables
- Fee enhancement will apply to funds, ETFs and LICs
What are the benefits of the fee enhancements?
- Fees will be calculated more accurately relative to client balances
- It will help you meet advice compliance requirements and reduce risk
What is not changing?
There are sections of AdviserLogic that will not use the fee enhancements, they will continue to use realised financial year-end figures inclusive of dollar-based fees and administration fees. These sections include AdviserLogic Portfolio X-Ray, asset report and Adviser Research Centre (ARC).