Firms reminded on exit fees ahead of PYSP

The Australian Securities and Investments Commission (ASIC) is reminding product issuers that as part of their implementation of Protecting Your Super Package (PYSP), they need to take care that, from 1 July 2019, Product Disclosure Statements (PDSs) do not suggest exit fees will be charged on superannuation products.

Exit fees would be banned under PYSP from 1 July 2019 and would affect superannuation products, so the line needed to be eliminated from the relevant PDSs as well as ensuring no exit charges were charged in practice.

ASIC said it understood the timeline may be difficult for some issuers but encouraged them to make the change as soon as possible.

The regulator said it would be releasing a report on fees and cost disclosure in PDSs in the second half of 2019 following a consultation period earlier this year. It said it would take the changes under PYSP into account when compiling this report.

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