Corporations Amendment Regulations 2003 (No. 8) (282 of 2003)

Schedule 3   Amendments commencing on 1 July 2004

[9]   Regulation 7.9.75

substitute

7.9.75 Content of periodic statements: costs of transactions

(1) For paragraph 1017D (5) (g) of the Act, the prescribed details in relation to a financial product include:

(a) amounts paid by the holder of the financial product in respect of the financial product during the period; and

(b) for amounts paid in respect of the financial product, and amounts paid in respect of other financial products, that are paid into a common fund:

(i) if any amounts are deducted from the common fund by way of fees, expenses or charges during the period:

(A) a proportion of the amount deducted that is actually or notionally attributable to the product holder's interest; and

(B) if applicable - a statement informing the product holder that the notional proportion of the amount may not give an accurate estimate of the effect of the deduction on the product holder's interest; or

(ii) if it is not reasonably practicable for the issuer to determine a proportion in accordance with subparagraph (i), a statement to the effect that:

(A) amounts for fees, expenses or charges have been deducted from the common fund to which the product relates in relation to the reporting period; and

(B) these deductions are borne indirectly by the holders of the product and may affect the return to the holders; and

(c) a statement informing the product holder:

(i) that information in relation to the financial product, including details of benefits or fees and charges is available on request; and

(ii) of the means by which a product holder is able to gain access to that information; and

(d) a statement informing the product holder:

(i) that there is a dispute resolution mechanism that covers complaints by holders of the product; and

(ii) of the means by which a product holder is able to gain access to that mechanism.

(2) For paragraph (1) (a) an amount has been paid in respect of a financial product by the holder of the financial product if:

(a) the product holder has paid an amount in respect of the product; or

(b) an amount has been deducted from:

(i) a payment made by the product holder; or

(ii) a payment made to the product holder; or

(c) the product holder has paid an amount or an amount has been deducted or debited as a fee, expense or charge in relation to the financial product; or

(d) an amount is held on the product holder's behalf under the financial product (excluding any amounts referred to in paragraph (1) (b) deducted from a common fund).

(3) The details of amounts mentioned in paragraph (1) (a) and subparagraph (1) (b) (i) must include:

(a) the amount in dollars; or

(b) if it is not reasonably practicable for an amount to be identified - a description of the item as a percentage of a specified matter; or

(c) if it is not reasonably practicable to provide an amount or a percentage:

(i) a statement informing the holder of the product that the amount is applicable; and

(ii) details of the means by which a product holder is able to gain access to information relating to the amount.

(4) For paragraph 1017D (5) (g) of the Act, if a financial product has:

(a) an opening or closing balance mentioned in paragraph 1017D (5) (a); or

(b) the termination value mentioned in paragraph 1017D (5) (b); or

(c) an increase in contributions mentioned in paragraph 1017D (5) (d); or

(d) a return on investment mentioned in paragraph 1017D (5) (e);

the periodic statement must include the details in subregulation (5).

(5) For subregulation (4), the details are:

(a) the amount in dollars; or

(b) if it is not reasonably practicable for an amount to be identified when the periodic statement is provided - a description of the balance, value, increase or return as a percentage of a specified matter (including, if appropriate, worked dollar examples); or

(c) if it is not reasonably practicable for an amount or a percentage to be identified when the periodic statement is provided:

(i) a statement informing the holder of the product that the amount is applicable; and

(ii) details of the means by which a product holder is able to gain access to information relating to the amount.