7.7A.10

Arrangements that are not ongoing fee arrangements

Current

(1)

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

(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 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.

This Act’s bill:Explanatory statement

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