Corporations Regulations 2001

SCHEDULE 10 - DISCLOSURE OF FEES AND OTHER COSTS  

(regulations 7.9.16K , 7.9.16M and 7.9.16N )

Modifying legislative instruments

PART 2 - FEES AND COSTS TEMPLATE, EXAMPLE OF ANNUAL FEES AND COSTS AND CONSUMER ADVISORY WARNING FOR PRODUCT DISCLOSURE STATEMENTS  

Division 6 - How to fill in the example of annual fees and costs  

218A   Management costs for a collective investment product  

218A(1)    

The example of management costs for an investment option offered by a managed investment scheme or a retail CCIV is applied to an amount of $50 000 or an amount that is a multiple of $50 000 if clause 215 applies.

Note: In calculating the amount, do not include contributions that may be made during the year.

218A(2)    

If there is a range in the amount of management costs that may be charged for an investment option offered by a managed investment scheme or a retail CCIV, the example must use the highest management costs in the range.

218A(3)    

Management costs that are not deducted directly from a product holder ' s account must be calculated using the indirect cost ratio for the relevant investment option offered by the managed investment scheme or the retail CCIV.

218A(4)    
Any percentage based management costs that are deducted directly from a product holder ' s account should be added to the percentage amount calculated under subclause (3).

218A(5)    
Any dollar based management costs that are deducted directly from a product holder ' s account must be shown separately in the management costs cell.

Example 1:

Management costs: 2% deducted directly from your account + 1.6% deducted indirectly.

Example 2:

Management costs: $52 per year ($1 per week) deducted directly from your account + 1.6% deducted indirectly.

Example 3:

Management costs: $52 per year ($1 per week) + 1% deducted directly from your account + 1.6% deducted indirectly.