Corporations Regulations 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.9 - FINANCIAL PRODUCT DISCLOSURE AND OTHER PROVISIONS RELATING TO ISSUE AND SALE OF FINANCIAL PRODUCTS  

Division 5 - Ongoing requirements for product disclosure after person becomes a member  

Subdivision 5.2 - Periodic statements for retail clients for financial products that have an investment component: regulated superannuation funds, approved deposit funds and RSAs  

REGULATION 7.9.20B   OTHER SIGNIFICANT BENEFITS - DISCLOSURE OF FEES, CHARGES OR EXPENSES  

7.9.20B(1)   [ Application]  

For subsection 1017D(5A) of the Act, this regulation applies to details of a deduction for fees, charges or expenses mentioned in paragraph 7.9.20(1) (kb).

7.9.20B(2)   [ Where not possible to state amount in dollars]  

If ASIC determines that, for a compelling reason based on the nature of a financial product or service, or the nature of the information, to state the amount of the deduction in dollars:

(a) would impose an unreasonable burden on a product issuer, or a class of product issuers; or

(b) would impose an unreasonable burden on a product issuer, or a class of product issuers, within a period specified in the determination; or

(c) would not be in the interests of a product holder, or a class of product holders;

the information may be set out as a description of the amount as a percentage of a specified matter (including worked dollar examples, unless that is inappropriate).

7.9.20B(3)   [ Required information]  

If ASIC determines that, for a compelling reason, based on the nature of a financial product or service, or the nature of the information, to state the amount of a deduction in dollars, or, to describe the amount as a percentage:

(a) would impose an unreasonable burden on a product issuer, or a class of product issuers; or

(b) would impose an unreasonable burden on a product issuer, or a class of product issuers, within a period specified in the determination; or

(c) would not be in the interests of a product holder, or a class of product holders;

the product issuer must provide the information in subregulation (4).

7.9.20B(4)   [ Requirements]  

If subregulation (3) applies, the product issuer must provide:

(a) a statement informing the product holder that amounts for fees, charges or expenses are applicable; and

(b) if information about the deduction is not provided in the statement mentioned in sub-subparagraph 7.9.20(1) (ka)(ii)(B) - details of the means by which a product holder can gain access to information relating to the amount of the deduction.

7.9.20B(5)   [ Publication]  

A determination under subregulation (2) or (3) must be:

(a) in writing; and

(b) published in the Gazette .