Corporations Regulations 2001

SCHEDULE 10 - DISCLOSURE OF FEES AND OTHER COSTS  

(regulations 7.9.16K , 7.9.16M and 7.9.16N )

PART 2 - FEES AND COSTS TEMPLATE, EXAMPLE OF ANNUAL FEES AND COSTS AND CONSUMER ADVISORY WARNING FOR PRODUCT DISCLOSURE STATEMENTS  

Division 4 - Additional explanation of fees and costs  

209  

209   Matters to be included as additional explanation of fees and costs  

The following information, if relevant to the particular superannuation product or collective investment product, must be included under the heading ' Additional Explanation of Fees and Costs ' :

(a) the explanation of the fees mentioned in footnote 2 for superannuation products and footnote 2 for collective investment products;

(b) information on performance fees including:

(i) a statement about how performance fees affect administration fees and investment fees for a superannuation product, or management costs for a collective investment product; and

(ii) the method for calculating the fees; and

(iii) the amount of the fees, or an estimate of the amount if the amount is not known;

(c) for tax - a cross reference to the " Tax " part of the Product Disclosure Statement;

(ca) for insurance fees and other costs relating to insurance (if relevant) - a cross reference to the " Insurance " part of the Product Disclosure Statement;

(d) if the product is subject to tax - whether the benefit of any tax deduction is passed on to the investor in the form of a reduced fee or cost;

(e) an explanation of adviser remuneration that forms part of any fee or cost in the table, including (if known to the product issuer):

(i) the method of calculation; and

(ii) the amounts of commission or the range of amounts; and

(iii) whether the amounts are negotiable or rebatable; and

(iv) the way in which amounts may be negotiated or rebated;

(f) an explanation of advice fees;

(g) for a negotiated fee or cost - contact details of the person or body with whom the fee or cost can be negotiated and the manner of negotiation;

(h) worked examples (if appropriate);

(i) additional details of incidental fees (if appropriate);

(j) details of transactional and operational costs such as brokerage and buy-sell spread, including:

(i) a description of the cost; and

(ii) the amount, or an estimate if the amount is not known; and

(iii) how and when the costs are recovered; and

(iv) a statement that the cost is an additional cost to the investor; and

(v) whether any part of the buy-sell spread is paid to the product issuer or an external manager;

(k) the following information about fee changes:

(i) if applicable, a statement about the issuer ' s right to change the amount of fees without the investor ' s consent;

(ii) any indexation arrangements that apply;

(iii) the period of advance notice required for fee changes;

(iv) any change in fee structure that is dependent on a person ' s employment;

(l) if the issuer has instituted a flexible charging structure, for each applicable fee, if known:

(i) any maximum, and when it would apply; and

(ii) any waiver, and when it would not apply;

(m) for a superannuation product - details regarding the protection of small accounts (member protection rules) unless already included in the Product Disclosure Statement.