What is RG97?

RG97 is a new requirement for all super funds to provide additional information about the ‘indirect costs’ incurred when investing in underlying investments.  As part of the Government’s reforms to super, the Australian Securities and Investment Commission (ASIC) issued a Regulatory Guide to all super funds, known as ‘RG97’.

This change affects all super funds in the same way. All super funds are expected to show increased fees and costs.

This is an initiative introduced by the Government to standardise the disclosure of fees and costs across all super funds and aims to help all Australians compare different super funds.

What are indirect costs?

Super funds invest money into a range of underlying and wholesale investment funds for each investment option. ‘Indirect costs’ are the costs of underlying investment managers that aren’t charged directly to you, but are instead factored into your returns, so you effectively pay for these indirectly. 

What is changing?

The fees and costs charged directly to you are not changing but, as a result of this regulatory requirement, the fees we disclose will be higher as they now factor in the fees and costs incurred when investing in underlying or wholesale investments. For example, the Indirect Cost Ratio of the EISS Super MySuper Conservative Balanced investment option will change from 0.63% to 0.82%.

Does this change impact me?

No. This is a regulatory change to the way fees and costs are disclosed and does not financially impact you. You are not paying any more fees and costs and there is no impact on the performance of your investments with us as a result of this regulatory change. This change is simply a regulatory requirement to now include additional information about the costs incurred when investing.

Does this increase the amount I pay?

No. The cost to manage your account and the investment managers’ costs for managing the underlying or wholesale investments within each of our investment options are not increasing as a result of this regulatory change. These costs are already taken into account in the investment returns you currently receive, we are simply now required to provide greater detail of these costs in our disclosure of indirect costs to you.

Does this change affect performance?

No. These changes have no impact on the performance of your investments. This regulatory change only impacts the way we disclose the underlying costs of your investments.

Where can I access more information on this change?

The new fees and costs disclosure will be included in the relevant Product Disclosure Statement (PDS) from 29 September 2017 available at eisuper.com.au/pds. We will also start reporting this new disclosure requirement to you in your 30 June 2018 annual statement.

Where can I find more information?

More information is available on the Australian Securities and Investment Commission (ASIC) website, here.

We are here to help

You can call our dedicated team on 1300 369 901 from Monday to Friday, 8:30am to 5:00pm (AEST).