Corporations Amendment (Intra-fund Advice Fees) Regulation 2013 (102 of 2013)

Schedule 1   Amendments

Corporations Regulations 2001

1   Subregulations 7.7A.10(2) and (3)

Repeal the subregulations, substitute:

(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 theSuperannuation Industry (Supervision) Act 1993, is not prohibited or prevented from being passed on to a member of a regulated superannuation fund.