1 Marketing and Distribution Board Committee Russell Anderson September 2014

2 Marketing and Distribution BC  Mandate : o Primary purpose of M&D BC is to focus on all matters relating to Retail and Institutional products where there is a retail consumer using such products and includes the marketing of these products. This includes product development and consumer disclosure matters.  Composition: o Representatives from ASISA Member Organizations o Experience, skills, ability and willingness to contribute in this area. o Chair and ASISA Point Person o Number of Standing Committees and Work Groups falling under the M&D BC: Disclosure and Standards Standing Committee ( D&S SC ) Total Expense Ratio Standard Work Group ( TER WG ) Intermediary Remuneration Review Work Group ( IRR WG ) Distribution Affairs Standing Committee ( DA SC ) Treating Customers Fairly Standing Committee ( TCF SC )

3 Disclosure and Standards SC  Mandate : o Focus on product disclosures and standards across the product spectrum that ASISA members market to consumers.  Current Main Focus Areas: o Engaging with NT/FSB on Product Disclosures o Standardised Disclosure of Costs and Fees ( EAC and TER ) o Standardised Terminology ( Investment and Risk Products)

4 TER Standard WG  Mandate : o Review and update the ASISA Total Expense Ratio ( TER ) Standard, especially in light of the work being done on the Effective Annual Cost ( EAC ) disclosure measure, which uses TER as part of the calculations and in light of TCF, especially the Standard Terminology Initiative.  Current Status: o Draft TER Standard

5 Intermediary Remuneration WG  Mandate : o Comment on the FSB’s proposals to change the way advisors are paid, define what intermediary services are in a consistent way and how advisors should describe themselves to their clients. ( Status Disclosure ). Thereafter to engage with the FSB until the final outcome(s) in this regard are implemented

6 Distribution Affairs SC  Mandate : o Provide a forum where ASISA stakeholders can engage with a broad range of intermediary bodies on industry wide issues.  Current Main Focus Areas : o Cost of Regulatory Compliance o Product and Cost Disclosure o RDR

7 TCF SC Mandate : o Provide input to the FSB to help ensure effective, practical and cost effective regulation that achieves the overall objectives of TCF. oPlay an advocacy role to help members understand and accept that TCF is good for long term sustainable business and in the interests of all stakeholders. oHelp imbed a TCF culture with members so that it becomes part of their strategic business plans. oWork with the FSB where appropriate and possible, to assist them with implementing TCF.  Current Main Focus Areas : o TCF Outcome 4 – Product suppliers accountability in relation to IFAs. o Outcome 6 – FSB Complaints Management Proposal.

8 Thanks