The Australian Securities and Investments Commission (ASIC) fee disclosure model for product disclosure statements of investment products says “significant fees” should be disclosed so they can be understood by investors at a glance.

ASIC Executive Director Financial Services Regulation Ian Johnston says investors “have a right to clear, concise, and comprehensive information about the fees they will pay”, and that the model will help people understand their fees and help them to compare fees across different products.

The regulator also wants planners to formulate a second table to itemise ongoing fees and have another section for other disclosure items such as “worked examples, information about adviser remuneration and information about fee changes”.

Investment and Financial Services Association (IFSA) CEO Richard Gilbert says the model will allow consumers for the first time  “to compare fees, charges and associated services for all managed investment and superannuation products”.

He says IFSA will be conducting consumer testing of the model and he hopes that the entire industry will endorse and implement the fee disclosure model so products from different companies can be easily compared.

Reiterating that fee disclosure is “an ongoing process”, Mr Johnston says ASIC will encourage companies to adopt the model quickly, but he acknowledges it will take time for consistency to be achieved.

“The common terminology provisions will aid in greater consumer understanding of the products, services provided and fees charged, which is in line with IFSA’s commitment to ongoing consumer and investor education,” Mr Gilbert said.