Commonwealth Consolidated Regulations

[Index] [Table] [Search] [Search this Regulation] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

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 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.



AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback