Corporations Regulations 2001

SCHEDULE 10 - DISCLOSURE OF FEES AND OTHER COSTS  

(regulations 7.9.16K , 7.9.16M and 7.9.16N )

PART 1 - INTERPRETATION  

101  

101   Definitions  

In this Schedule:

activity fee
, for a superannuation product, has the meaning given by subsection 29V(7) of the SIS Act.

administration fee
, for a superannuation product, has the meaning given by subsection 29V(2) of the SIS Act.

advice fee
:

(a) for a superannuation product - has the meaning given by subsection 29V(8) of the SIS Act; and

(b) for a collective investment product - means an amount that is:

(i) paid or payable to a financial adviser for financial product advice to a retail client or product holder about an investment; and

(ii) not included in a contribution fee, withdrawal fee, exit fee, establishment fee or management cost.

adviser service fee
(Repealed by SLI 2013 No 155, Sch 1[11].)

balanced investment option
means an investment option in which the ratio of investment in growth assets, such as shares or property, to investment in defensive assets, such as cash or bonds, is as close as practicable to 70:30.

brokerage
means an amount paid or payable to a broker for undertaking a transaction for the acquisition or disposal of a financial product.

buy-sell spread
:

(a) for a superannuation product - has the meaning given by subsection 29V(4) of the SIS Act; or

(b) for a collective investment product (other than a security in a retail CCIV) - means an amount, deducted from the value of a financial product of a product holder, that represents an apportionment, among product holders, of the actual or estimated transaction costs incurred by the managed investment scheme; or

(c) for a collective investment product that is a security in a retail CCIV that is referable to a sub-fund of the CCIV - means an amount, deducted from the value of the security of a product holder, that represents an apportionment, among product holders for the sub-fund, of the actual or estimated transaction costs incurred by the CCIV in respect of sub-fund.

collective investment product
means a managed investment product, a security in a retail CCIV or a foreign passport fund product.

contribution fee
means an amount paid or payable against the initial, and any subsequent, contributions made into a product by or for a retail client for the product.

Note: A contribution may be made by an employer on behalf of the product holder or retail client.

distribution costs
means the costs or amounts paid or payable for the marketing, offer or sale of a product.

Note: This includes any related adviser remuneration component other than an advice fee.

establishment fee
means an amount paid or payable for the establishment of a client ' s interest in a product.

Note: This does not include contribution fees paid or payable against the initial contribution into the product.

exit fee
:

(a) for a superannuation product - has the meaning given by subsection 99BA(2) of the SIS Act; and

(b) for a collective investment product (other than a security in a retail CCIV) - means an amount paid or payable on the disposal of all interests held in the product; and

(c) for a collective investment product that is a security in a retail CCIV - means an amount paid or payable on the disposal of the security.

incidental fees
means costs or amounts, other than costs or fees defined in this clause, that are:

(a) paid or payable in relation to the product; and

(b) not material to a retail client ' s decision to acquire, hold or dispose of his or her interest in the product.

Example:

Cheque dishonour fees.

indirect cost
of a MySuper product or an investment option offered by a superannuation entity means any amount that:

(a) a trustee of the entity knows, or reasonably ought to know, will directly or indirectly reduce the return on the investment of a member of the entity in the MySuper product or investment option; and

(b) is not charged to the member as a fee.

insurance fee
, for a superannuation product, has the meaning given by subsection 29V(9) of the SIS Act.

investment fee
, for a superannuation product, has the meaning given by subsection 29V(3) of the SIS Act.

lifecycle MySuper product
has the meaning given by regulation 7.9.07N .

lifecycle stage
has the meaning given by regulation 7.9.07N .

performance
, of a collective investment product, a superannuation product, a MySuper product or an investment option, includes:

(a) income in relation to the assets of, or attributed to, the collective investment product, the superannuation product, the MySuper product or the investment option; and

(b) capital appreciation (realised or unrealised) to the value of the collective investment product, the superannuation product, the MySuper product or the investment option.

performance fee
means an amount paid or payable, calculated by reference to the performance of a collective investment product, a superannuation product, a MySuper product or an investment option.

service fees
means advice fees, special request fees and switching fees.

special request fees
includes fees paid or deducted from a product holder ' s collective investment product for a request made to:

(a) for a product that is a managed investment product for a managed investment scheme - the managed investment scheme; or

(b) for a product that is a security in a retail CCIV that is referable to a sub-fund of the CCIV - the CCIV in respect of the sub-fund.

Example:

This applies to a fee for a request for additional information from a managed investment scheme.

switching fee
:

(a) for a superannuation product - has the meaning given by subsection 29V(5) of the SIS Act; or

(b) for a collective investment product - means an amount paid or payable when a product holder transfers all or part of the product holder ' s interest in the collective investment product from one investment option to another.

termination fee
(Repealed by SLI 2013 No 155, Sch 1[25].)

withdrawal fee
, for a collective investment product, means an amount, other than an exit fee, paid or payable in respect of:

(a) for a product (other than a security in a retail CCIV) - a withdrawal or the disposal of an interest in the product; or

(b) for a product that is a security in a retail CCIV - the disposal of the security.