Commonwealth Numbered Regulations

1994 No. 57 SUPERANNUATION INDUSTRY (SUPERVISION) REGULATIONS - REG 3.10

3.10. (1) For the purposes of subsection 154 (1) of the Act, the requirements
set out in this regulation apply in relation to a payment by the trustee of a
public offer entity of commission or brokerage of a kind mentioned in that
subsection.

(2) The trustee of a public offer entity may make a payment of commission or
brokerage to a person in consideration of the person:

   (a)  applying or agreeing to apply for the issue of an interest in the
        entity; or

   (b)  procuring or agreeing to procure applications for the issue of an
        interest in the entity; if, and only if:

   (c)  the payment is not prohibited by the entity's trust deed; and

   (d)  the amount of the proposed payment, or the proposed rate of payment,
        is disclosed in a regulated document in relation to the entity.

(3) The trustee of a public offer entity must not make a payment of commission
or brokerage to a person in respect of issuing an interest in the entity
unless the person is:

   (a)  the holder of a dealers licence granted under Part 7.3 of the
        Corporations Law or under a corresponding law of a State or Territory;
        or

   (b)  the holder of a proper authority within the meaning of the
        Corporations Law; or

   (c)  an exempt dealer within the meaning of the Corporations Law; or

   (d)  any of the following:

        (i)    the holder of an investment advisers licence granted under Part
               7.3 of the Corporations Law or under a corresponding law of a
               State or Territory;

        (ii)   an accountant or solicitor whose principal business or
               profession is not the giving of advice about securities;

        (iii)  an employee of an accountant or solicitor whose principal
               business or profession is not the giving of advice about
               securities; or

        (iv)   a company providing accountancy or legal services whose
               principal business is not the giving of advice about
               securities;

        (v)    a director or employee of a company of that kind;
if the person has told the trustee in writing that the total amount of the
commission or brokerage will be rebated to the applicant for the issue; or

   (e)  a registered insurance broker within the meaning of the Insurance 
        (Agents and Brokers) Act 1984 ; or

   (f)  a life insurance company.

(4) A reference in subregulation (3) to a solicitor or accountant includes a
reference to a firm of solicitors or accountants, or to a partner in such a
firm, as the case requires.

(5) The trustee of an entity must keep an account of amounts of commission and
brokerage paid by the entity.