Compliance issues pose the main challenge for advisers under the Future of Financial Advice reforms, according to an Australian Securities and Investments Commission study.

In a survey of 60 financial services licensees, 70% say fee disclosure is an issue and 65% report having to make changes to their systems and processes.

“Fee disclosure statements were consistently highlighted as an issue and challenge for licensees,” the regulator says. “Many had experienced difficulties with disaggregating fee and commission data.

“Looking ahead, the licensees considered that the best-interests duty posed a relatively high risk of non-compliance in the future.”

Compliance with the reforms became mandatory from July 1 last year.

The survey covers 10,000 advisers and 4.6 million retail clients; 74% of the advisers are authorised representatives, with the remainder employees of licensees.