Commonwealth Numbered Regulations

CORPORATIONS AMENDMENT REGULATIONS 2003 (NO. 8) 2003 NO. 282 - SCHEDULE 3

(regulation 3)

[1] Subparagraphs 7.7.11 (2) (a) (i) and (ii)

substitute

(i)

stated as an amount in dollars; or

(ii)

if it is not reasonably practicable for an amount to be identified when the Statement of Advice is provided — set out as a description of the remuneration, commission and benefits as a percentage of a specified matter (including, if appropriate, worked dollar examples); or

(iii)

if it is not reasonably practicable for an amount or a percentage to be identified when the Statement of Advice is provided — set out as a description of the method of calculating the remuneration, commission and benefits (including, if appropriate, worked dollar examples);

[2] Subparagraphs 7.7.12 (2) (a) (i) and (ii)

substitute

(i)

stated as an amount in dollars; or

(ii)

if it is not reasonably practicable for an amount to be identified when the Statement of Advice is provided — set out as a description of the remuneration, commission and benefits as a percentage of a specified matter (including, if appropriate, worked dollar examples); or

(iii)

if it is not reasonably practicable for an amount or a percentage to be identified when the Statement of Advice is provided — set out as a description of the method of calculating the remuneration, commission and benefits (including, if appropriate, worked dollar examples);

[3] After regulation 7.7.12

insert in Division 3

7.7.13 Additional information about charges or benefits
For paragraph 947D (2) (c) of the Act, the Statement of Advice must include:

(a)

the amount, in dollars, of each charge or pecuniary benefit mentioned in paragraph 947D (2) (a) of the Act; or

(b)

if it is not reasonably practicable for an amount to be identified when the Statement of Advice is provided — a description of the charge or pecuniary benefit 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 Statement of Advice is provided — a description of the method of calculating the charge or benefit (including, if appropriate, worked dollar examples).

[4] After regulation 7.9.15

insert

7.9.15A Information about benefits, costs and payments
For paragraph 1013D (4) (c) of the Act, a Product Disclosure Statement must include, in the statements of information required by subsection 1013D (1) of the Act:
(a) the amount, in dollars, of:

(i)

a benefit mentioned in paragraph 1013D (1) (b); and

(ii)

a cost or an amount mentioned in paragraph 1013D (1) (d); and

(iii)

a payment mentioned in paragraph 1013D (1) (e); or

(b)

if it is not reasonably practicable for an amount to be identified when the Product Disclosure Statement is provided — a description of the benefit, cost, amount or payment 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 Product Disclosure Statement is provided — a description of the method of calculating the benefit, cost, amount or payment (including, if appropriate, worked dollar examples).

[5] Regulation 7.9.19

omit everything before paragraph (a), insert

(1)

This regulation applies to a periodic statement that relates to a reporting period (within the meaning of subsection 1017D (2) of the Act) commencing before 1 July 2004.

(2)

For paragraph 1017D (5) (g) of the Act, a periodic statement for a member of a fund (other than a self managed superannuation fund) or an RSA holder must include the following details:

[6] After regulation 7.9.19

insert

7.9.19A Specific requirements for periodic statements: superannuation funds (other than self managed superannuation funds) and RSAs
(1) This regulation applies to:

(a)

a periodic statement for a superannuation product, given to a member of a superannuation fund (other than a self managed superannuation fund), that relates to a reporting period (within the meaning of subsection 1017D (2) of the Act) commencing on or after 1 July 2004; or

(b)

a periodic statement for an RSA product, given to an RSA holder, that relates to a reporting period (within the meaning of subsection 1017D (2) of the Act) commencing on or after 1 July 2004.

(2) For paragraph 1017D (5) (g) of the Act, the periodic statement must include the following details:

(a)

the issuer's contact details;

(b)

the amount of the withdrawal benefit for the product holder at the start of the reporting period;

(c) the following information about the withdrawal benefit for the product holder at the end of the reporting period:

(i)

the amount of the withdrawal benefit;

(ii)

the method by which that amount was worked out;

(iii)

the amount of the withdrawal benefit (if any) that consists of preserved benefits;

(iv)

the amount of the withdrawal benefit (if any) that consists of restricted non-preserved benefits;

(v)

the amount of the withdrawal benefit (if any) that consists of unrestricted non-preserved benefits;

(d) a statement informing the product holder that:

(i)

the information about the withdrawal benefit for the product holder at the end of the reporting period is based on notional amounts that would have been attributable to the product holder if the product holder had disposed of his or her interest in the product on the date shown in the statement; and

(ii)

the amounts on which that information is based might change; and

(iii)

before disposing of the product, the product holder should seek information from the issuer on the withdrawal benefit at that time;

(e)

a statement informing the product holder that the issuer is obliged to provide a member with any information that he or she reasonably requires to understand his or her benefit entitlements;

(f)

a statement of the way in which a product holder is able to gain access to information in relation to his or her investment in the financial product.

(3) In providing details of the amount of withdrawal benefit at the end of the reporting period, in accordance with subparagraph (2) (c) (i), if a deduction for fees, charges or expenses has been made or might be made, the product issuer must provide details of the deduction including:

(a)

the amount in dollars; or

(b)

if it is not reasonably practicable for an amount to be identified — a description of the fees, charges or expenses 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:

(i)

a statement informing the holder of the product that amounts for fees, charges or expenses are applicable; and

(ii)

if information about access to the information about the amount of a deduction is not provided in the statement mentioned in paragraph (2) (e) — details of the means by which a product holder can gain access to information relating to the amount of the deduction.

[7] Paragraph 7.9.20 (1) (k)

substitute

(k)

for a reporting period (within the meaning of subsection 1017D (2) of the Act ) commencing before 1 July 2004 — details, including the amount or method of working out, of other significant benefits, including, in particular, disability benefits;

(ka)

for a reporting period (within the meaning of subsection 1017D (2) of the Act) commencing on or after 1 July 2004:

(i)

details of other significant benefits, including disability benefits, and the amount of the benefits at the end of the reporting period, or the method of working out the amount of the benefits; and

(ii)

if the periodic statement includes an amount mentioned in subparagraph (i) — a statement informing the holder of the product that:

(A) the details of the significant benefit reflects the situation for the member on the date shown in the statement and the amount might change; and
(B) the issuer is obliged to provide product holders with any information they reasonably require for the purpose of understanding their benefit entitlements; and

(iii)

details of the means by which a product holder is able to gain access to information relating to the amount of a significant benefit;

[8] After subregulation 7.9.20 (1)

insert

(1A) In providing details of the amount of other significant benefits at the end of the reporting period for subparagraph (1) (ka) (i), if a deduction has been made for fees, charges or expenses, the issuer must provide details of the deduction, including:

(a)

the amount in dollars; or

(b)

if it is not reasonably practicable for an amount to be identified — a description of the fees charges or expenses as a percentage of a specified matter (including, if appropriate, worked dollar examples); or

(c) if it is not reasonably practicable to provide an amount or a percentage — a statement informing the holder of the product:

(i)

that an amount for fees, charges or expenses is applicable; and

(ii)

if information about the deduction is not provided in the statement mentioned in sub-subparagraph (1) (ka) (ii) (B) — of details of the means by which a product holder is able to gain access to information relating to the amount.

[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.