Commonwealth Numbered Regulations

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CORPORATIONS AMENDMENT REGULATIONS 2004 (NO. 6) 2004 NO. 149 - SCHEDULE 2

Amendments commencing on 1 January 2005

(regulation 3)

[1] Paragraph 7.9.19 (f)

omit

benefits.

insert

benefits;

[2] After paragraph 7.9.19 (f)

insert

(g) if, in providing details of the amount of the withdrawal benefit at the end of the reporting period, a deduction for fees, charges or expenses has been made or might be made — details of the deduction;
(h) if relevant, 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 that product, the product holder should seek information from the product issuer on the withdrawal benefit at that time;
(i)
a statement informing the product holder that the product issuer is obliged to provide a member with any information that he or she reasonably requires to understand his or her benefit entitlements;

(j)
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] After regulation 7.9.19

insert

7.9.19A Withdrawal benefit — fees, charges or expenses

(1)
For subsection 1017D (5A) of the Act, in providing details of a deduction for fees, charges or expenses in accordance with paragraph 7.9.19 (g), the amount must be stated in dollars.

(2)
If ASIC determines that, for a compelling reason, it is not possible to state the amount of a deduction in dollars the amount of the deduction may be set out as a description of the fees, charges or expenses as a percentage of a specified matter (including worked dollar examples, unless that is inappropriate).

(3)
If ASIC determines that, for a compelling reason, it is not possible to state the amount of a deduction in dollars, or to set out the amount as a percentage, the product issuer may provide:

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

(b)
if information about access to the information about the amount of the deduction is not provided in the statement mentioned in paragraph 7.9.19 (h) — details of the means by which a product holder can gain access to information relating to the amount of the deduction.

(4) A determination under subregulation (2) or (3) must be:

(a)
in writing; and

(b)
published in the Gazette .

7.9.19B Withdrawal benefit — fees, charges and expenses

(1)
For subsection 1017D (5A) of the Act, this regulation applies to details of a deduction for fees, charges or expenses in accordance with paragraph 7.9.19 (g).

(2) If ASIC determines that, for a compelling reason based on the nature of a financial product or service, or the nature of the information, to state the information as an amount in dollars:

(a)
would impose an unreasonable burden on a product issuer, or a class of product issuers; or

(b)
would impose an unreasonable burden on a product issuer, or a class of product issuers, within a period specified in the determination; or

(c)
would not be in the interests of a product holder, or a class of product holders;

the information may be set out as a description of the amount as a percentage of a specified matter (including worked dollar examples, unless that is inappropriate).

(3) If ASIC determines that, for a compelling reason, based on the nature of a financial product or service, or the nature of the information, to state the information as an amount in dollars, or to describe the amount as a percentage:

(a)
would impose an unreasonable burden on a product issuer, or a class of product issuers; or

(b)
would impose an unreasonable burden on a product issuer, or a class of product issuers, within a period specified in the determination; or

(c)
would not be in the interests of a product holder, or a class of product holders;

the product issuer must provide the information in subregulation (4).

(4) If subregulation (3) applies, the product issuer must provide:

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

(b)
if information about access to the information is not provided in the statement mentioned in paragraph 7.9.19 (i) — details of the means by which a product holder can gain access to information relating to the amount of the deduction.

(5) A determination under subregulation (2) or (3) must be:

(a)
in writing; and

(b)
published in the Gazette .

[4] After paragraph 7.9.20 (1) (ka)

insert

(kb)
if, in providing details of other significant benefits for a reporting period, a deduction for fees, charges or expenses has been made or might be made — details of the deduction;

[5] After regulation 7.9.20

insert

7.9.20A Details of other significant benefits — disclosure of fees, charges or expenses

(1)
For subsection 1017D (5A) of the Act, in providing details of a deduction for fees, charges or expenses in accordance with paragraph 7.9.20 (1) (kb):

(a)
the amount must be stated in dollars; or

(b)
if ASIC determines that, for a compelling reason, it is not possible to state the amount of a deduction in dollars the amount of the deduction may be set out as a description of the fees, charges or expenses as a percentage of a specified matter (including worked dollar examples, unless that is inappropriate); or

(c) if ASIC determines that, for a compelling reason, it is not possible to state the amount of a deduction in dollars, or to set out the amount as a percentage, the product issuer may provide:

(i)
a statement informing the holder of the product that amounts for fees, charges or expenses are applicable; and
(ii)
if information about the deduction is not provided in the statement mentioned in sub-subparagraph 7.9.20 (1) (ka) (ii) (B) — details of the means by which a product holder can gain access to information relating to the amount.

(2) A determination under paragraph (1) (b) or (c) must be:

(a)
in writing; and

(b)
published in the Gazette .

7.9.20B Other significant benefits — disclosure of fees, charges or expenses

(1)
For subsection 1017D (5A) of the Act, this regulation applies to details of a deduction for fees, charges or expenses mentioned in paragraph 7.9.20 (1) (kb).

(2) If ASIC determines that, for a compelling reason based on the nature of a financial product or service, or the nature of the information, to state the amount of the deduction in dollars:

(a)
would impose an unreasonable burden on a product issuer, or a class of product issuers; or

(b)
would impose an unreasonable burden on a product issuer, or a class of product issuers, within a period specified in the determination; or

(c)
would not be in the interests of a product holder, or a class of product holders;

the information may be set out as a description of the amount as a percentage of a specified matter (including worked dollar examples, unless that is inappropriate).

(3) If ASIC determines that, for a compelling reason, based on the nature of a financial product or service, or the nature of the information, to state the amount of a deduction in dollars, or, to describe the amount as a percentage:

(a)
would impose an unreasonable burden on a product issuer, or a class of product issuers; or

(b)
would impose an unreasonable burden on a product issuer, or a class of product issuers, within a period specified in the determination; or

(c)
would not be in the interests of a product holder, or a class of product holders;

the product issuer must provide the information in subregulation (4).

(4) If subregulation (3) applies, the product issuer must provide:

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

(b)
if information about the deduction is not provided in the statement mentioned in sub-subparagraph 7.9.20 (1) (ka) (ii) (B) — details of the means by which a product holder can gain access to information relating to the amount of the deduction.

(5) A determination under subregulation (2) or (3) must be:

(a)
in writing; and

(b)
published in the Gazette .

[6] Paragraph 7.9.75 (1) (b)

substitute

(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

[7] Paragraph 7.9.75 (1) (d)

omit

request.

insert

request, and the means by which the product holder can gain access to that information.

[8] Subregulation 7.9.75 (2)

substitute

(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).



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