Corporations Regulations 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.9 - FINANCIAL PRODUCT DISCLOSURE AND OTHER PROVISIONS RELATING TO ISSUE AND SALE OF FINANCIAL PRODUCTS  

Division 8 - Other requirements  

REGULATION 7.9.75   CONTENT OF PERIODIC STATEMENTS: COSTS OF TRANSACTIONS  

7.9.75(1)    
For paragraph 1017D(5)(g) of the Act, the prescribed details in relation to a financial product include:

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

(b)    

if the amounts paid in respect of the financial product, and the amounts paid in respect of other financial products, are paid into a common fund, and amounts are deducted from the common fund by way of expenses, fees and charges:

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

(ii) 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; and

(c)    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; and

(d)    

a statement that further information in relation to the financial product is available on request, and the means by which the product holder can gain access to that information; and

(e)    

in relation to a superannuation product (other than a self managed superannuation fund), a managed investment product or a foreign passport fund product - the details set out in Part 3 of Schedule 10 .

7.9.75(1A)    
However, for a periodic statement mentioned in an item of the table that is issued for the financial product mentioned in the item, and issued at a time described in the item, the prescribed details set out in paragraph (1)(b) are not required to be included if the statement includes, or is accompanied by, statements to the effect that:

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

(b)    those deductions are borne indirectly by the holders of the product, and may affect the return to the holders; and

(c)    further information about the deductions can be obtained by contacting the issuer of the product.

Table

Table

Item	Kind of statement	Product	Statement issued
1	Periodic statement other than exit statement	Superannuation product to which Division 4C of this Part applies	in relation to a reporting period commencing before 1 July 2005
2	Exit statement	Superannuation product to which Division 4C of this Part applies	before 1 July 2006
3	Periodic statement other than exit statement	Financial product other than superannuation product to which Division 4C of this Part applies	in relation to a reporting period commencing before 1 July 2006
4	Exit statement	Financial product other than superannuation product to which Division 4C of this Part applies	before 1 July 2007

7.9.75(2)    

For paragraph (1)(a), an amount has been paid in respect of a 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).

7.9.75(3)    

For paragraph 1017D(5A)(a) of the Act, subregulations (4) and (5) apply in relation to a financial product that has:

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

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

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

(d)    a return on investment mentioned in paragraph 1017D(5)(e) of the Act.

7.9.75(4)    

If ASIC determines that, for a compelling reason, it is not possible to state the amount in dollars, the amount may be described as a percentage of a specified matter (including worked dollar examples, unless that is inappropriate).

7.9.75(5)    

If ASIC determines that, for a compelling reason, it is not possible to state the amount in dollars, or to describe the amount as a percentage, the periodic statement must include:

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

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

7.9.75(6)    

A determination under subregulation (4) or (5) must be:

(a)    in writing; and

(b)    published in the Gazette .