(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 managed investment 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.