Corporations Regulations 2001

SCHEDULE 10E - FORM AND CONTENT OF PRODUCT DISCLOSURE STATEMENT - SIMPLE MANAGED INVESTMENT SCHEME  

(regulation 7.9.11W )

8   Contents of section 6 (Fees and costs)  

8(1)    
For each investment option of the simple managed investment scheme that is presented in section 5 in detail in accordance with subclause 7(3), section 6 of the Product Disclosure Statement must state:

(a) the cost of acquiring the option; and

(b) the fees and costs that are charged in relation to the option.

Note The statement will be made using the template set out in subclause (3).

8(2)    
Before setting out any other substantive material, section 6 must:

(a) set out the Consumer Advisory Warning in clause 221 of Schedule 10 ; and

(b) give a concise example in the form set out in the Consumer Advisory Warning in clause 221 of Schedule 10 .

8(3)    
Section 6 must set out the fees and costs for each investment option that is presented in section 5 in detail in accordance with subclause 7(3), using the following template:

TYPE OF FEE OR COST	AMOUNT
Fees when your money moves in or out of the fund
Establishment fee
Contribution fee
Withdrawal fee
Termination fee
Management costs
The fees and costs for managing your investment

[If there are other service fees, such as advisor service fees or special request fees, include a cross reference to the document that contains the information mentioned in paragraph (10)(a).] .

8(4)    
The template is to be completed in accordance with Division 3 of Schedule 10 (including definitions applicable to that Division), except that:

(a) clauses 203, 205, 206 and 207 and subclause 208(2) do not apply; and

(b) the reference in clause 204 to clause 205 and clause 206 does not apply; and

(c) the example in subclause 208(1) is to be treated as stating:

" (for example, by using an asterisk with a footnote stating ' The amount of this fee can be negotiated ' ) "

.

8(5)    
Section 6 must set out the information about fee changes set out in paragraph 209(k) of Schedule 10 .

8(6)    
Section 6 must:

(a) state that the information in the template can be used to compare costs between different simple managed investment schemes; and

(b) state concisely, and in general terms, that fees and costs can be paid directly from the person ' s account or deducted from investment returns.

8(7)    
Section 6 must give a worked example as follows:

(a) if the simple managed investment scheme does not have a balanced investment option (within the meaning given by item 101 of Schedule 10 ), section 6 must give a worked example for the default investment option;

(b) if the simple managed investment scheme does not have a default option, and does not have a balanced investment option, section 6 must give a worked example for the investment option under which the entity has the most funds invested;

in accordance with Divisions 5 and 6 of Schedule 10 (including definitions applicable to those Divisions), except that clauses 211 and 220 do not apply.

8(8)    
Section 6:

(a) must refer to the calculator provided by ASIC on its FIDO website or a similar website operated by or on behalf of ASIC; and

(b) may also refer to the calculator (if any) provided by the responsible entity on its website; and

(c) must state that each calculator referred to can be used to calculate the effect of fees and costs on account balances.

8(9)    
If additional fees may be payable to a financial advisor, section 6 must:

(a) state, in the form of a warning, that additional fees may be paid to a financial advisor if a financial advisor is consulted; and

(b) refer to the Statement of Advice in which details of the fees are set out.

8(10)    
The responsible entity:

(a) must provide the fees and costs of each of the investment options in accordance with Schedule 10, and may do so by applying, adopting or incorporating a matter in writing; and

(b) may provide more detailed information about fees and costs by applying, adopting or incorporating a matter in writing.