Corporations Regulations 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.7A - BEST INTERESTS OBLIGATIONS AND REMUNERATION  

Note: Regulations 7.7A.01 to 7.7A.04 are reserved for future use.

Division 3 - Charging ongoing fees to clients  

REGULATION 7.7A.10   ARRANGEMENTS THAT ARE NOT ONGOING FEE ARRANGEMENTS  

7.7A.10(1)    
This regulation is made for subsection 962A(5) of the Act.

7.7A.10(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).

7.7A.10(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.