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CORPORATIONS REGULATIONS 2001 - REG 7.7A.10

Arrangements that are not ongoing fee arrangements

  (1)   This regulation is made for subsection   962A(5) of the Act.

  (2)   An arrangement of a kind mentioned in subsection   962A(1) or (2) of the Act is not an ongoing fee arrangement to the extent that the arrangement relates to a product fee mentioned in subregulation   (3).

  (3)   Each of the following is a product fee:

  (a)   a fee for the administration, management or operation of a financial product that is charged to a retail client to which the product is issued by the issuer of the product;

Example 1:   A monthly account keeping fee charged by the provider of a basic deposit product.

Example 2:   A monthly administration or investment fee charged by a trustee of a superannuation fund or a responsible entity of a registered scheme.

  (b)   a fee that:

  (i)   is a cost of providing financial product advice; and

  (ii)   under section   99F of the Superannuation Industry (Supervision) Act 1993 , is not prohibited or prevented from being passed on to a member of a regulated superannuation fund.


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