(regulation 6.2.02)

Column 1	Column 2	Column 3	Column 4
Item	Office	Law	Jurisdiction
1	Treasurer		Commonwealth
2	Trustee	Parts IV, X and XI of the Bankruptcy Act 1966	Commonwealth
3	Chairperson of the Australian Securities and Investments Commission	Australian Securities and Investments Commission Act 2001	Commonwealth
4	Deputy Chairperson of the Australian Securities and Investments Commission	Australian Securities and Investments Commission Act 2001	Commonwealth
5	Member of the Australian Securities and Investments Commission	Australian Securities and Investments Commission Act 2001	Commonwealth
7	Member of the Takeovers Panel	Australian Securities and Investments Commission Act 2001	Commonwealth
8	Treasurer		Western Australia
9	Commissioner for Corporate Affairs		Western Australia
10	Public Trustee	Public Trustee Act 1941	Western Australia
11	Master of the Supreme Court	Supreme Court Act 1935	Western Australia
12	Registrar of the Supreme Court	Supreme Court Act 1935	Western Australia
13	Treasurer		Victoria
14	Commissioner for Corporate Affairs		Victoria
15	Public Trustee	Public Trustee Act 1958	Victoria
16	Master of the Supreme Court	Supreme Court Act 1958	Victoria
17	Treasurer		New South Wales
18	Public Trustee	Public Trustee Act 1913	New South Wales
19	Master	Division 1 of Part VIII of the Supreme Court Act 1970	New South Wales
20	Supervisor of Loan Fund Companies	Loan Fund Companies Act 1976	New South Wales
21	Protective Commissioner	Mental Health Act 1958	New South Wales
22	Treasurer		Queensland
23	Commissioner for Corporate Affairs		Queensland
24	Public Trustee	Public Trustee Act 1978	Queensland
25	Registrar	Supreme Court Acts 1861‑1980	Queensland
26	Treasurer		South Australia
27	Curator of Prisoners Property	Criminal Law Consolidation Act 1935‑80	South Australia
28	Public Trustee	Administration and Probate Act 1919‑1980	South Australia
29	Master or accountant	Supreme Court Act 1935‑1980	South Australia
30	Administrator	Chapter XLIX of the Criminal Code	Tasmania
31	Treasurer		Tasmania
32	Commissioner for Corporate Affairs		Tasmania
33	Public Trustee	Public Trustee Office Act 1930	Tasmania
34	Registrar of the Supreme Court	Supreme Court Act 1959	Tasmania
35	Treasurer		Australian Capital Territory
36	Public Trustee	Administration and Probate Ordinance 1929 and the Public Trustee Act 1985	Australian Capital Territory
37	Registrar of the Supreme Court	Australian Capital Territory Supreme Court Act 1933	Commonwealth
38	Master of the Supreme Court	Australian Capital Territory Supreme Court Act 1933	Commonwealth
39	Treasurer		Northern Territory
40	Public Trustee	Public Trustee Act 1979	Northern Territory
41	Master of the Supreme Court		Northern Territory
42	Commissioner for Corporate Affairs	Companies (Administration) Act 1986	Northern Territory

(regulation 1.1.01)

Column 1	Column 2	Column 3
Item	Matter	Amount ($)
1	Inspection of registers for the purposes of:
	(a) subsection 173 (2) or subsection 672DA (7):
	(i) if a register is not kept on a computer — for each inspection	5.00
	(ii) if a register is kept on a computer — for each inspection	a reasonable amount that does not exceed the marginal cost to the company of providing an inspection
1AA	Supply of copies for subsection 173 (3) In addition:	250.00
	(a) for each member about whom information is provided in excess of 5 000 members and up to 19 999 members	0.05
	(b) for each member about whom information is provided at 20 000 members or more	0.01
1A	Inspection of registers or records for:
	(a) subsection 271 (3)
	(b) subsection 668A (3);
	for each inspection	5.00
2	Supply under section 139 by a company to a member of the company of a copy of the company’s constitution	10.00
3	Supply of copies for subsection 672DA (8):
	(a) if a register is not kept on a computer — for each page, or part of a page, not exceeding international sheet size A4 of the copy supplied or, at the option of the supplier, for each 100 words or part of 100 words	0.50
	(b) if a register is kept on a computer — for each inspection	a reasonable amount that does not exceed the marginal cost to the company of providing a copy
3A	Supply of copies for:
	(a) subsection 246G (3)
	(b) subsection 251B (4)
	(ba) subsection 253N (4)
	(c) subsection 271 (4)
	(d) subsection 812 (3)
	(e) paragraph 1178 (3) (a);
	for each page, or part of a page, not exceeding international sheet size A4 of the copy supplied or, at the option of the supplier, for each 100 words or part of 100 words	0.50
4	Payment for each name and address provided under subsection 641 (5)	0.10
5	For compliance with a direction under section 672A	5.00
6	Replacement of lost or destroyed certificate for paragraph 1070D (4) (a)	10.00
7	Fee for supply by a responsible entity of a copy of the constitution of a registered scheme under subsection 601GC (4)	10.00
8	Inspection of register for subsection 919E (3):
	(a) if the register is not kept on a computer — for each inspection	12.50
	(b) if the register is kept on a computer — for each inspection	a reasonable amount that does not exceed the marginal cost to the declared professional body of providing an inspection
	(c) despite paragraphs (a) and (b), if the inspection is by a member of the declared professional body	No fee
9	Making copies of, or taking extracts from, a register for subsection 919E (3):
	(a) if the register is not kept on a computer — for each page, or part of a page, not exceeding international sheet size A4 of the copy supplied or, at the option of the supplier, for each 100 words or part of 100 words	1.25
	(b) if a register is kept on a computer — for each copy or extract	a reasonable amount that does not exceed the marginal cost to the declared professional body of providing a copy or extract

Schedule 5C Conduct of auditor — relevant relationships

(regulation 2M.6.05)

1 Money owed — debt

(1) Subclause (2) applies in relation to audit activity in relation to a financial year that ends on or after the commencement of this Schedule.

(2) The operation of Chapter 2M of the Act is modified by omitting subsection 324CH (5) of the Act (including the subheading) and substituting the following subheading and subsection:

Ordinary course of business exception

(5) For the purposes of item 15 of the table in subsection (1):

(a) disregard a debt owed by an individual to a body corporate or entity if:

(i) the body corporate or entity is:

(A) an Australian ADI; or

(B) a body corporate registered under the Life Insurance Act 1995; and

(ii) the debt arose because of a loan that the body corporate or entity made to the person in the ordinary course of its ordinary business; and

(iii) the person used the amount of the loan to pay the whole or part of the purchase price of premises that the person uses as their principal place of residence; and

(b) disregard a debt owed by the person or firm to a body corporate or entity if:

(i) the debt is on normal terms and conditions, and arises from the acquisition of goods or services on normal trading terms from:

(A) the audited body; or

(B) an entity that the audited body controls; or

(ii) the goods or services will be used by the person or firm:

(A) for the personal use of the person or firm; or

(B) in the ordinary course of business of the person or firm.

2 Money owed — deposit account

(1) Subclause (2) applies in relation to audit activity in relation to a financial year that ends on or after the commencement of this Schedule.

(2) The operation of Chapter 2M of the Act is modified by omitting subsection 324CH (6) of the Act (including the subheading) and substituting the following subheading and subsection:

Loans by immediate family members and amounts on call

(6) For the purposes of item 16 of the table in subsection (1):

(a) disregard a debt owed to a person by a body corporate or entity if:

(i) the item applies to the person because the person is an immediate family member of:

(A) a professional member of the audit team conducting the audit of the audited body; or

(B) a non‑audit services provider; and

(ii) the debt is incurred in the ordinary course of business of the body corporate or entity; and

(b) disregard an amount owed to the person or firm by the audited body, a related body corporate or an entity that the audited body controls if:

(i) the body, body corporate or entity is an Australian ADI; and

(ii) the amount is in a basic deposit product (within the meaning of section 761A of the Act) provided by the body, body corporate or entity; and

(iii) the amount was deposited in the ordinary course of the business of the audited body, body corporate or entity, and on the terms and conditions that normally apply to basic deposit products provided by the body, body corporate or entity.

3 Public company auditor (annual appointments at AGMs to fill vacancies)

(1) Subclause (2) applies to:

(a) all companies; and

(b) all registered schemes; and

only in relation to audit activity that is conducted on or after the commencement of this Schedule.

(2) The operation of Chapter 2M of the Act is modified by omitting from subsections 327B (2A), (2B) and (2C) of the Act “21 days” and inserting “21 days, or such longer period as ASIC allows,”.

Schedule 6 Availability of names

(regulations 2B.6.01, 2B.6.02, 5B.3.01 and 5B.3.02)

Part 1 Rules for ascertaining whether names are identical

6101

In comparing one name with another for paragraph 147 (1) (a) or (b) or 601DC (1) (a) or (b) of the Act, the following matters are to be disregarded:

(a) the use of the definite or indefinite article as the first word in one or both of those names;

(b) the use of ‘Proprietary’, ‘Pty’, ‘Limited’, ‘Ltd’, ‘No Liability’ or ‘NL’ in one or both of the names;

(d) the type, size and case of letters, the size of any numbers or other characters, and any accents, spaces between letters, numbers or characters, and punctuation marks, used in one or both names;

(e) the fact that one name contains a word or expression in column 2 of the following table and the other name contains an alternative for that word or expression in column 3:

Column 1 Item	Column 2 Word or expression	Column 3 Alternative
1	Australian	Aust
2	Company	Co or Coy
3	Co	Company or Coy
4	Coy	Company or Co
5	Number	No
6	and	&
7	Incorporated	Inc
8	Corporation	Corp
9	Australian Company Number	ACN

Part 2 Names unacceptable for registration

6203

For paragraph 147 (1) (c) or 601DC (1) (c) of the Act, a name is unacceptable for registration if the name:

(a) in the opinion of ASIC, is undesirable, or likely to be offensive to:

(i) members of the public; or

(ii) members of any section of the public; or

(b) subject to rule 6204:

(i) contains a word or phrase specified in an item in Part 3, or an abbreviation of that word or phrase; or

(ii) a word or phrase or an abbreviation having the same or a similar meaning; or

(d) in the context in which it is proposed to be used, suggests a connection with:

(i) the Crown; or

(ii) the Commonwealth Government; or

(iii) the Government of a State or Territory; or

(iv) a municipal or other local authority; or

(v) the Government of any other part of the Queen’s dominions, possessions or territories; or

(vi) a department, authority or instrumentality of the Commonwealth Government; or

(vii) a department, authority or instrumentality of the Government of a State or Territory; or

(viii) the government of a foreign country;

if that connection does not exist; or

(e) in the context in which it is proposed to be used, suggests a connection with:

(i) a member of the Royal Family; or

(ii) the receipt of Royal patronage; or

(iii) an ex‑servicemen’s organisation; or

(iv) Sir Donald Bradman; or

(v) Mary MacKillop;

if that connection does not exist; or

(f) in the context in which it is proposed to be used, suggests that the members of an organisation are totally or partially incapacitated if those members are not so affected.

6204

Paragraph 6203 (b) does not apply to:

(a) item 6309, 6312 or 6318 of Part 3 if a word in any of those items must be included in the name of:

(i) a registrable Australian body; or

(ii) a registered Australian body;

because of the Act under which it is incorporated or registered; and

(b) item 6314 of Part 3 if the word must be included in the name of:

(i) a registrable Australian body; or

(ii) a registered Australian body; or

(iii) a registered foreign company; or

(iv) a foreign company;

because of the Act under which it is incorporated or registered.

6205

Paragraph 6203 (c) does not apply if ASIC is satisfied that the word is used in a geographical context.

Part 3 Restricted words and phrases

Column 1	Column 2
Item	Word or phrase
6301	Aboriginal Corporation
6302	Aboriginal Council
6304	Chamber of Commerce
6305	Chamber of Manufactures
6306	Chartered
6308	Consumer
6309	Co‑operative
6311	Executor
6312	Friendly Society (other than in relation to the conduct of a financial business)
6312A	GST
6312B	G.S.T.
6313	Guarantee
6314	Incorporated
6316	Made in Australia
6316A	police
6316B	policing
6317	R.S.L.
6317A	RSL
6318	Starr Bowkett
6319	Stock Exchange
6320	Torres Strait Islander Corporation
6321	Trust
6322	Trustee

Part 4 Consent required to use restricted words and phrases

Column 1	Column 2	Column 3
Item	Word or phrase	Minister
6401	Anzac	Minister for Veterans’ Affairs
6403	Geneva Cross, Red Crescent, Red Cross, Red Lion and Sun	Minister for Defence
6405	United Nations	Minister for Foreign Affairs
6406	University	Minister for Education, Training and Youth Affairs

Part 5 Names relating to financial institutions for use of which consent is required

Item	Letters, word or expression	Public authority, instrumentality or agency
6501	ADI	APRA
6502	authorised deposit‑taking institution	APRA
6503	bank	APRA
6504	banker	APRA
6505	banking	APRA
6506	building society	APRA
6507	credit society	APRA
6508	credit union	APRA
6509	friendly society (in relation to the conduct of a financial business)	APRA

Schedule 7 Exemptions from requirements to set out certain corporate particulars

(regulations 2B.6.03 and 5B.3.03)

7001 Definitions for Schedule 7

In this Schedule:

IATA means the International Air Transport Association.

IATA body means a company, registered Australian body or registered foreign company that is a member of IATA, or participates in the program conducted by IATA known as BSP Australia.

relevant information means the information that is required under subsection 153 (2), or paragraph 601DE (1) (b), (c) or (d), of the Act to be set out on a public document or negotiable instrument.

7002 Exemption for certain IATA documents

An IATA Body is exempt from the requirement to set out the relevant information on a document if:

(a) it is a document of one of the following kinds:

(i) passenger ticket and baggage check;

(ii) excess baggage ticket;

(iii) agency credit or debit memo;

(iv) credit card charge form;

(v) miscellaneous charges order;

(vi) stopover voucher;

(vii) air waybill; and

(b) either:

(i) it is in a form sponsored by IATA; or

(ii) it is required by IATA to be used by IATA bodies; or

(iii) it is a document printed outside Australia exclusively for use, outside Australia, by or on behalf of that particular IATA body.

7003 Exemption for bills of lading and sea waybills

The following companies, registered Australian bodies and registered foreign companies are exempt from the requirement to set out the relevant information on a bill of lading or sea waybill:

(a) Austrident Shipping Agency Pty Ltd;

(b) ANL Limited;

(d) Blue Star Line Limited;

(e) Blue Star PACE Limited;

(f) CSR Limited;

(g) Dalgety Australia Operations Limited;

(h) Five Star Shipping & Agency Company Pty Ltd;

(i) Jebsens International (Australia) Pty Ltd;

(j) ‘K’ Line (Australia) Pty Limited;

(k) Nedlloyd Australia Pty Ltd;

(l) OOCL (Australia) Pty Limited;

(m) Opal Maritime Agencies Pty Limited;

(n) Patrick Sleigh Shipping Agencies Pty Limited;

(o) Tasman Express Line Limited;

(p) Wilhelmsen Lines Australia Pty Ltd;

(q) Wills Shipping Pty Limited.

7004 Exemptions — quotation of ACNs and ARBNs

(1) A company is exempt from the requirement to set out the relevant information on a public document, or a negotiable instrument, of the company if:

(a) the company is registered on the Australian Business Register; and

(b) the last 9 digits of its ABN are the same, and in the same order, as the last 9 digits of its ACN; and

(c) ‘Australian Business Number’ or ‘ABN’ is displayed with the name of the company, or with 1 of the references to that name:

(i) in the case of a document or instrument in which the name appears on only 1 page — on that page; and

(ii) in the case of a document or instrument in which the name appears on 2 or more pages — on the first of those pages.

(2) A registered Australian body or registered foreign body is exempt from the requirement to set out information mentioned in paragraph 601DE (1) (b) and subsection 601DE (2) of the Act on a public document, or a negotiable instrument, of the registered body or foreign company if:

(a) the body or company is also registered on the Australian Business Register; and

(b) the last 9 digits of its ABN are the same, and in the same order, as the last 9 digits of its ARBN; and

(c) ‘Australian Business Number’ or ‘ABN’ is displayed with the name of the body or company, or with 1 of the references to that name:

(i) in the case of a document or instrument in which the name appears on only 1 page — on that page; and

(ii) in the case of a document or instrument in which the name appears on 2 or more pages — on the first of those pages.

Schedule 8 Schemes of arrangement under Part 5.1 of the Act

(regulation 5.1.01)

Chapter 5 External administration

Part 1 Interpretation and application

8101 In this Schedule:

internal creditor means:

(a) a creditor who is a member of the company; or

(b) a relative or spouse of a member; or

Scheme means the proposed compromise or arrangement.

scheme creditors means the creditors or class of creditors of a company, to whom the Scheme would apply.

scheme members means the members or class of members of a company, to whom the Scheme would apply.

8102 This Schedule applies to a Part 5.1 body that is not a company as if:

(a) references to a company were references to a Part 5.1 body that is not a company; and

(b) references to a director were references to an office bearer, committee member or other office holder of the body; and

(c) references to entitlements to voting shares were references to an ability to exercise a percentage of the total votes that could be exercised by members of the body.

Part 2 Prescribed information relating to proposed compromise or arrangement with creditors or class of creditors

8201 The statement must set out:

(a) the expected dividend that would be available to scheme creditors if the company were to be wound up within 6 months after the date of the hearing of the application to the Court for an order under subsections 411 (1) and (1A) of the Act; and

(b) if a composition of debts is proposed — the expected dividend that would be paid to scheme creditors if the Scheme were put into effect as proposed; and

(d) if a scheme creditor is known to be a guaranteed creditor — the name of the creditor and the amount of the debt owed; and

(e) if a scheme creditor is known to be an internal creditor — the name of the creditor and the amount of the debt owed.

8202 The statement must contain a statement that an order under subsections 411 (1) and (1A) of the Act is not anendorsement of, or any other expression of opinion on, the Scheme.

8203 The statement must contain or have annexed to it:

(a) a report on the affairs of the company in accordance with Form 507, showing the financial position of the company as at a day within one month of the date on which it is intended to apply to the Court for an order under subsections 411 (1) and (1A) of the Act;

(b) a copy, certified by a director or by a secretary of the company to be a true copy, of all financial statements, required to be lodged with the ASIC by the company, together with a copy of every document required by law to be annexed to the financial statements;

(i) of the number of trusts administered by the trustee; and

(ii) whether the trustee carries on any business separate from that of the trust; and

(iii) how the scheme creditors may obtain a copy of the relevant trust deed, free of charge, prior to the date of the meeting; and

(d) if the person (if any) who would be appointed to manage the Scheme proposes to charge for his or her services and for the services of his or her staff in accordance with a particular scale of charges, that scale of charges.

Part 3 Prescribed information relating to proposed compromise or arrangement with members or a class of members

8301 The statement must set out:

(a) unless the company the subject of the Scheme is in
the course of being wound up or is under official management, in relation to each director of the company:

(i) whether the director recommends the acceptance
of the Scheme or recommends against acceptance and, in either case, his or her reasons for so recommending; or

(ii) if the director is not available to consider the Scheme — that the director is not so available and the cause of his or her not being available; or

(iii) in any other case — that the director does not desire to make, or does not consider himself or herself justified in making, a recommendation and, if the director so requires, his or her reasons for not wishing to do so; or

(b) if the company is in the course of being wound up or is under official management — in relation to each liquidator or each official manager:

(i) whether he or she recommends acceptance of the Scheme or recommends against acceptance and, in either case, his or her reasons for so recommending; or

(ii) in any other case — that the liquidator or official manager does not wish to make a recommendation and his or her reasons for not wishing to do so.

8302 The statement must set out:

(a) the number, description and amount of marketable securities of the company the subject of the Scheme held by or on behalf of each director of the company or, if none are held by or on behalf of a director, a statement to that effect; and

(b) for each director of the company by whom or on whose behalf shares in that company are held, whether:

(i) the director intends to vote in favour of, or against, the Scheme; or

(ii) the director has not decided whether he or she will vote in favour of, or against, the Scheme; and

(c) if the other party to the proposed reconstruction or amalgamation is, or includes, a corporation, whether any marketable securities of the corporation are held by, or on behalf of, any director of the company the subject of the Scheme and, if so, the number, description and amount of those marketable securities; and

(d) particulars of any payment or other benefit that is proposed to:

(i) be made or given to any director, secretary or executive officer of the company the subject of the Scheme as compensation for loss of, or as consideration for or in connection with his or her retirement from, office in that company or in a related body corporate; or

(ii) be made or given to any director, secretary or executive officer of any related body corporate as compensation for the loss of, or as consideration for or in connection with his or her retirement from, office in that body corporate or in the company the subject of the Scheme; and

(e) if there is any other agreement or arrangement made between a director of the company the subject of the Scheme and another person in connection with or conditional on the outcome of the Scheme — particulars of the agreement or arrangement; and

(f) if the object of the Scheme is for a corporation to acquire control of another corporation that is a company, particulars of the nature and extent of any interest of a director of that company in any contract entered into by the corporation seeking control; and

(g) if the shares of the company the subject of the Scheme are not granted official quotation on a securities exchange, all the information that the company has as to the number of shares that have been sold in the 6 months immediately before the date on which the statement is lodged, the amount of those shares and the prices at which they were sold; and

(h) whether, within the knowledge of the directors of the company the subject of the Scheme, or, if the company is in liquidation or under official management, the knowledge of the liquidator or the official manager, the financial position of the company has materially changed since the date of the last balance sheet laid before the company in general meeting or sent to shareholders in accordance with section 314 or 317 of the Act and, if so, full particulars of any change; and

(i) any other information material to the making of a decision in relation to the Scheme, being information that is within the knowledge of any director, liquidator or official manager of a company the subject of the Scheme or of a related company and that has not previously been disclosed to the Scheme members.

8303 If:

(a) the other party to the proposed reconstruction or amalgamation of the company the subject of the Scheme has a prescribed shareholding in the company; or

(b) a director of any corporation that is the other party to the proposed reconstruction or amalgamation is a director of a company the subject of the Scheme;

the statement must be accompanied by a copy of a report made by an expert who is not associated with the corporation that is the other party, stating whether or not, in his or her opinion, the proposed Scheme is in the best interest of the members of the company the subject of the Scheme and setting out his or her reasons for that opinion.

8304 If the company the subject of the Scheme obtains 2 or more reports, each of which could be used for clause 3, the statement must be accompanied by a copy of each report.

8305 If:

(a) the company the subject of the Scheme obtains a report for clause 3; and

(b) the report contains:

(i) a forecast of the profits or profitability of the company; or

(ii) a statement that the market value of an asset or assets of the company or of a related body corporate differs from an amount at which the value of the asset or assets is shown in the books of the company or the related body corporate;

that report must not accompany the statement except with the consent in writing of ASIC and in accordance with such conditions (if any) as are stated by ASIC.

8306 For clause 3:

(a) a person has a prescribed shareholding in a company if he or she is entitled to not less than 30% of the voting shares in the company; and

(b) a person has a prescribed shareholding in a company in which the voting shares are divided into 2 or more classes of shares, if he or she is entitled to not less than 30% of the shares in one of those classes.

8307 If the consideration to be offered to scheme members consists, in whole or in part, of marketable securities issued, or to be issued, by a corporation, the statement must set out the formula to be applied to find out the number of marketable securities to be issued to each scheme member, and the basis on which that formula was developed.

8308 If marketable securities of the same class as those mentioned
in clause 7 are granted official quotation on a securities exchange, the statement must state the fact, specify the securities exchange concerned, and set out:

(a) the latest recorded sale price before the date on which the statement is lodged for registration; and

(b) the highest and lowest recorded sale prices during the 3 months immediately before that date and the dates of the relevant sales; and

(c) if the Scheme has been the subject of a public announcement in newspapers or by any other means before the statement has been registered by ASIC — the latest recorded sale price immediately before the public announcement.

8309(1) If the marketable securities mentioned in clause 8 are granted official quotation on more than one securities exchange, it is sufficient compliance with paragraphs 8 (a) and (c) if information on the marketable securities is given for the securities exchange at which there has been the greatest number of recorded dealings in the securities in the 3 months immediately before the date on which the statement is lodged for registration.

(2) If the securities have not been granted official quotation on a securities exchange, the statement must set out all the information that a director, liquidator or official manager of the company the subject of the Scheme or of a related body corporate has about the number of securities that have been sold in the 3 months immediately before the date on which the explanatory statement was prepared and the price of those securities or, if that information or any part of that information cannot be ascertained, a statement to that effect.

8310 The statement must set out particulars of the intentions of the directors of the company the subject of the Scheme regarding:

(a) the continuation of the business of the company or, if the undertaking, or any part of the undertaking, of a company is to be transferred, how that undertaking or part is to be conducted in the future; and

(b) any major changes to be made to the business of the company, including any redeployment of the fixed assets of the company; and

Part 4 Prescribed information relating to proposed compromise or arrangement with members or class of members for transfer to a trustee

8401 The statement must set out:

(a) in detail, the basis on which units in the unit trust are to be issued to scheme members; and

(b) if the issue of units in the unit trust is based on the asset backing of shares held by scheme members — full valuation details of those assets.

8402 A copy of the trust deed must be annexed, or set out in a schedule, to the statement.

8403 If the effect of the proposed compromise or arrangement will be the merger of 2 companies without substantial common membership, the explanatory statement must, so far as practicable, state the matters, and be accompanied by the documents and reports, mentioned in Part 3.

Schedule 8A Deed of company arrangement — prescribed provisions

(regulation 5.3A.06)

1 Administrator deemed agent of company

In exercising the powers conferred by this deed and carrying out the duties arising under this deed, the administrator is taken to act as agent for and on behalf of the company.

2 Powers of administrator

For the purpose only of administering this deed, the administrator has the following powers:

(a) to enter upon or take possession of the property of the company;

(b) to lease or let on hire property of the company;

(d) to insure property of the company;

(e) to repair, renew or enlarge property of the company;

(f) to call in, collect or convert into money the property of the company;

(g) to administer the assets available for the payment of claims of creditors in accordance with the provisions of this deed;

(h) to purchase, hire, lease or otherwise acquire any property or interest in property from any person or corporation;

(i) to borrow or raise money, whether secured upon any or all of the assets of the company or unsecured, for any period on such terms as the administrator thinks fit and whether in substitution for any existing security or otherwise;

(j) to bring, prosecute and defend in the name and on behalf of the company or in the name of the administrator any actions, suits or proceedings;

(k) to refer to arbitration any question affecting the company;

(l) to make payments to any secured creditor of the company and any person who is the owner or lessor of property possessed used or occupied by the company;

(m) to convene and hold meetings of the members or creditors of the company for any purpose the administrator thinks fit;

(n) to make interim or other distributions of the proceeds of the realisation of the assets available for the payment of claims of creditors as provided in this deed;

(o) to appoint agents to do any business or to attend to any matter or affairs of the company that the administrator is unable to do, or that it is unreasonable to expect the administrator to do, in person;

(p) to engage or discharge employees on behalf of the company;

(q) to appoint a solicitor, accountant or other professionally qualified person to assist the administrator;

(r) to permit any person authorised by the administrator to operate any account in the name of the company;

(s) to sell, call in or convert into money any of the property of the company, to apply the money in accordance with this deed and otherwise effectively and properly to carry out his or her duties as administrator;

(t) to do all acts and execute in the name and on behalf of the company all deeds, receipts and other documents, using the company’s common or official seal when necessary;

(u) subject to the Bankruptcy Act 1966, to prove in the bankruptcy of any contributory or debtor of the company or under any deed executed under that Act;

(v) subject to the Act, to prove in the winding up of any contributory or debtor of the company or under any scheme of arrangement entered into, or deed of company arrangement executed, under the Act;

(w) to draw, accept, make or endorse any bill of exchange
or promissory note in the name and on behalf of the company;

(x) to take out letters of administration of the estate of a deceased contributory or debtor, and do any other act necessary for obtaining payment of any money due from a contributory or debtor, or the estate of a contributory or debtor, that cannot be conveniently done in the name of the company;

(y) to bring or defend an application for the winding up of the company;

(z) to carry on the business of the company on such terms and conditions and for such purposes and times and in such manner as the administrator thinks fit subject only to the limitations imposed by this deed;

(za) to sell any or all of the property of the company including the whole of the business or undertaking of the company at any time the administrator thinks fit, either by public auction or by private contract and either for a lump sum or for a sum payable by instalments or for a sum on account and to obtain a mortgage charge or encumbrance for the balance or otherwise;

(zb) to close down the whole or any part of any business of the company;

(zc) to enter into and complete any contract for the sale of shares in the company;

(zd) to compromise any debts or claims brought by or against the company on such terms as the administrator thinks fit and to take security for the discharge of any debt forming part of the property of the company;

(ze) to pay any class of creditors in full, subject to Subdivision D of Division 6 of Part 5.6 of the Act;

(zf) to do anything that is incidental to exercising a power set out in this clause;

(zg) to do anything else that is necessary or convenient for the purpose of administering this deed.

3 Termination of deed where arrangement fails

If the administrator or the committee of inspection determines that it is no longer practicable or desirable either to continue to carry on the business of the company or to implement this deed, the administrator:

(a) may cease to carry on the business of the company except so far as is necessary for the beneficial winding up of the company;

(b) must summon a meeting of creditors for the purpose of passing a resolution under section 445C (b) of the Act; and

(c) must forward to each creditor not less than 14 days prior to the meeting an up‑to‑date report as to the position of the company accompanied by such financial statements as the administrator thinks fit, together with a statement that he or she does not think it practicable or desirable to carry on the business of the company or to continue this deed and that this deed will be terminated if the company’s creditors resolve.

4 Priority

The administrator must apply the property of the company coming under his or her control under this deed in the order of priority specified in section 556, 560 or 561 of the Act.

5 Discharge of debts

The creditors must accept their entitlements under this deed in full satisfaction and complete discharge of all debts or claims which they have or claim to have against the company as at the day when the administration began and each of them will, if called upon to do so, execute and deliver to the company such forms of release of any such claim as the administrator requires.

6 Claims extinguished

If the administrator has paid to the creditors their full entitlements under this deed, all debts or claims, present or future, actual or contingent, due or which may become due by the company as a result of anything done or omitted by or on behalf of the company before the day when the administration began and each claim against the company as a result of anything done or omitted by or on behalf of the company before the day when the administration began is extinguished.

7 Bar to creditors’ claims

Subject to section 444D of the Act this deed may be pleaded by the company against any creditor in bar of any debt or claim that is admissible under this deed and a creditor (whether the creditor’s debt or claim is or is not admitted or established under this deed) must not, before the termination of this deed:

(a) take or concur in the taking of any step to wind up the company; or

(b) except for the purpose and to the extent provided in this deed, institute or prosecute any legal proceedings in relation to any debt incurred or alleged to have been incurred by the company before the day when the administration began; or

(c) take any further step (including any step by way of legal or equitable execution) in any proceedings pending against or in relation to the company at the day when the administration began; or

(d) exercise any right of set‑off or cross‑action to which the creditor would not have been entitled had the company been wound up at the day when the administration began; or

(e) commence or take any further step in any arbitration against the company or to which the company is a party.

8 Making claims

(1) Subdivisions A, B, C and E of Division 6 of Part 5.6 of the Corporations Act 2001 apply to claims made under this deed as if the references to the liquidator were references to the administrator of this deed.

(2) For subclause (1), the remainder of that Act, and the Corporations Regulations 2001, are taken to apply, as far as practicable, as if:

(a) a reference that is relevant to the liquidator were a reference in a form that is applicable to the administrator; and

(b) a reference that is relevant to any other matter relating to liquidation were a reference in a form that is applicable to the administration of this deed; and

10 Lodging of accounts

Section 434 of the Act applies to the administrator as if the reference to a controller were a reference to the administrator of this deed.

11 Committee of inspection

For the purpose of advising and assisting the administrator of this deed, there may be a committee of inspection (the committee) to which the following rules apply:

(a) the committee must consist of at least 3 and not more than 5 members;

(b) the creditors must appoint the members in a general meeting;

(c) a creditor is not entitled to have more than one representative (including the creditor himself or herself, if a natural person) on the committee;

(d) minutes of all resolutions and proceedings of each meeting of the committee must be made and duly entered in books to be provided from time to time for that purpose by the administrator under this deed;

(e) if the minutes of a meeting purport to be signed by the chairperson of the meeting at which the resolutions were passed or proceedings taken or by the chairperson of the next meeting of the committee, the minutes are prima facie evidence of the matters contained in them;

(f) unless the contrary is proved, the meeting is taken to have been duly had and convened and all resolutions passed and proceedings taken at the meeting are taken to have been duly passed and taken;

(g) a corporation (being otherwise qualified for membership of the committee) is not entitled to be a member of the committee but may appoint a person to represent it on the committee;

(h) subsection 548 (3) and sections 549, 550 and 551 of the Act apply, with such modifications as are necessary, to
a committee of inspection established under this deed
as if the references to the liquidator were references to
the administrator of this deed and the references to contributories were deleted.

12 Termination of deed where arrangement achieves purpose

If the administrator has applied all of the proceeds of the realisation of the assets available for the payment of creditors or has paid to the creditors the sum of 100 cents in the dollar or any lesser sum determined by the creditors at a general meeting, the administrator must certify to that effect in writing and must within 28 days lodge with ASIC a notice of termination of this deed in the following form:

‘X PTY LIMITED

I, (insert name and address) as administrator of the deed of company arrangement executed on (insert date), CERTIFY that the deed has been wholly effectuated.’,

and the execution of the notice terminates this deed, but nothing in this clause relieves the administrator of his or her obligations under clause 10 of this deed.

Schedule 8AA Trustee companies

(regulation 5D.1.01)

Item	Trustee companies
1	ANZ Trustees (Canberra) Limited
2	ANZ Trustees Limited
3	Australian Executor Trustees Limited
4	Australian Executor Trustees (Canberra) Limited
5	Australian Executor Trustees (NSW) Limited
6	Australian Executor Trustees (SA) Limited
7	Bagot’s Executor and Trustee Company Limited
8	Elders Trustees Limited
9	Equity Trustees Limited
10	Executor Trustee Australia Limited
11	Mutual Trust Proprietary Limited
12	National Australia Trustees Limited
13	Permanent Trustee Company (Canberra) Limited
14	Perpetual Limited
15	Perpetual Trustee Company (Canberra) Limited
16	Perpetual Trustee Company Limited
17	Perpetual Trustees Consolidated Limited
18	Perpetual Trustees Queensland Limited
19	Perpetual Trustees S.A. Limited
20	Perpetual Trustees Victoria Limited
21	Perpetual Trustees W.A. Limited
22	Plan B Trustees Limited
23	Sandhurst Trustees Limited
24	Tasmanian Perpetual Trustees Limited
25	The Myer Family Office Ltd
26	Trust Company Limited
27	Trust Company Fiduciary Services Limited
28	Union Trustee Company (Canberra) Limited

Schedule 8AB Prescribed State and Territory provisions for paragraph 601RAE (4) (a) of the Act

(subregulation 5D.1.04 (1))

Item	State or Territory law and provisions
1	Trustee Companies Act 1984 (Vic), sections 40–42
2	Trustee Companies Act 1987 (WA), Part IV and section 34
3	Trustee Companies Act 1988 (SA), sections 15–15B and 19–21
4	Trustee Companies Act 1953 (Tas), subsections 18C (1), (3)–(13)
5	Companies (Trustees and Personal Representatives) Act (NT), section 25

Schedule 8AC Prescribed State and Territory laws and provisions for paragraph 601RAE (4) (b) of the Act — estate administration

(subregulation 5D.1.04 (2) and subregulation 7.6.02 (6))

Item	State or Territory law and provisions
1	Children and Young Persons (Care and Protection) Act 1998 (NSW)
2	Guardianship Act 1987 (NSW)
3	NSW Trustee and Guardian Act 2009 (NSW)
4	Victorian Civil and Administrative Tribunal Act 1998 (Vic), Part 9 of Schedule 1
5	Guardianship and Administration Act 1986 (Vic)
6	Guardianship and Administration Act 2000 (Qld)
7	Guardianship and Administration Act 1990 (WA)
8	Guardianship and Administration Act 1993 (SA)
9	Guardianship of Infants Act 1940 (SA)
10	Guardianship and Administration Act 1995 (Tas)
11	Guardianship and Custody of Infants Act 1934 (Tas)
12	Guardianship and Management of Property Act 1991 (ACT)
13	Testamentary Guardianship Act 1984 (ACT)
14	Adult Guardianship Act (NT)
15	Guardianship of Infants Act (NT)

Schedule 8AD Prescribed State and Territory laws and provisions for paragraph 601RAE (4) (b) of the Act

(subregulation 5D.1.04 (3))

Item	State or Territory law and provisions
	NEW SOUTH WALES
1	Probate and Administration Act 1898 and any regulations made under that Act
2	NSW Trustee and Guardian Act 2009 and any regulations made under that Act
3	Trustee Act 1925 and any regulations made under that Act
4	Trustee Companies Act 1964 and any regulations made under that Act
	VICTORIA
5	Administration and Probate Act 1958 and any regulations made under that Act
6	Guardianship and Administration Act 1986 and any regulations made under that Act
7	Instruments Act 1958 and any regulations made under that Act
8	Medical Treatment Act 1988 and any regulations made under that Act
9	State Trustees (State Owned Company) Act 1994 and any regulations made under that Act
10	Trustee Act 1958 and any regulations made under that Act
	QUEENSLAND
11	Guardianship and Administration Act 2000 and any regulations made under that Act
12	Legal Profession Act 2007 and any regulations made under that Act
13	Public Trustee Act 1978 and any regulations made under that Act
14	Succession Act 1981 and any regulations made under that Act
15	Trustee Companies Act 1968 and any regulations made under that Act
16	Trusts Act 1973 and any regulations made under that Act
17	Uniform Civil Procedure Rules 1999, Chapter 15 and rule 94
	WESTERN AUSTRALIA
18	Guardianship and Administration Act 1990 and any regulations made under that Act
19	Trustees Act 1962 and any regulations made under that Act
	SOUTH AUSTRALIA
20	Administration and Probate Act 1919 and any regulations made under that Act
21	Aged and Inform Persons’ Property Act 1940 and any regulations made under that Act
22	Guardianship and Administration Act 1993 and any regulations made under that Act
23	Legal Practitioners Act 1981, sections 35 and 77
24	Public Trustee Act 1995 and any regulations made under that Act
25	Trustee Act 1936 and any regulations made under that Act
	TASMANIA
26	Administration and Probate Act 1935 and any regulations made under that Act
27	Supreme Court Civil Procedure Act 1932 and any regulations made under that Act
28	Trustee Act 1898 and any regulations made under that Act
	AUSTRALIAN CAPITAL TERRITORY
29	Administration and Probate Act 1929 and any regulations made under that Act
30	Court Procedures Act 2004 and any regulations made under that Act
31	Guardianship and Management of Property Act 1991 and any regulations made under that Act
32	Legal Profession Act 2006 and any regulations made under that Act
33	Trustee Act 1925 and any regulations made under that Act
34	Trustee Companies Act 1947 and any regulations made under that Act
	NORTHERN TERRITORY
35	Aged and Infirm Persons’ Property Act and any regulations made under that Act
36	Public Trustee Act and any regulations made under that Act

Schedule 8AE Relevant State and Territory provisions

(regulation 5D.2.06)

Item	State or Territory provisions
1	Trustee Act 1925 (NSW), Part 2, Division 2
2	Trustee Act 1958 (Vic), Part I
3	Trusts Act 1973 (Qld), Part 3
4	Trustees Act 1962 (WA), Part III
5	Trustee Act 1936 (SA), Part 1
6	Trustee Act 1898 (Tas), Part II
7	Trustee Act 1925 (ACT), Part 2, Subdivision 2.2.1
8	Trustee Act (NT), Part I

Schedule 8B Option contract — prescribed indexes

(regulation 7.1.03)

1 All Ordinaries Accumulation Index

2 CAC 40 Index

3 Deutscher Aktienindex (DAX)

4 Dow Jones Asia‑Pacific Extra Liquid Series — Australia Equity Index

5 Dow Jones Asia‑Pacific Extra Liquid Series — Hong Kong Equity Index

6 Dow Jones Asia‑Pacific Extra Liquid Series — Japan Equity Index

7 Dow Jones Asia‑Pacific Extra Liquid Series — Pan Pacific Equity Index

8 Dow Jones Composite

9 Dow Jones Euro STOXX 50 Index

10 Dow Jones Global Titans 50 Index

11 Dow Jones Industrial Average Index

12 Dow Jones STOXX 50

13 FT‑SE 100 Index

14 Hang Seng Index

15 MIB 30 Index

16 Nasdaq 100 Index

17 Nasdaq Composite Index

18 Nikkei Index

19 Share Price Index

20 S&P 500 Composite Stock Price Index

21 S&P/ASX 20 Share Price Index

22 S&P/ASX 50 Share Price Index

23 S&P/ASX 100 Accumulation Index

24 S&P/ASX 100 Share Price Index

25 S&P/ASX 200 Consumer Discretionary (GIC) Sector Index

26 S&P/ASX 200 Consumer Staples (GIC) Sector Index

27 S&P/ASX 200 Energy (GIC) Sector Index

28 S&P/ASX 200 Financial (ex Property Trusts) (GIC) Sector Index

29 S&P/ASX 200 Health Care (GIC) Sector Index

30 S&P/ASX 200 Industrials (GIC) Sector Index

31 S&P/ASX 200 Information Technology (GIC) Sector Index

32 S&P/ASX 200 Materials (GIC) Sector Index

33 S&P/ASX 200 Property Trusts (GIC) Sector Index

34 S&P/ASX 200 Share Price Index

35 S&P/ASX 200 Telecommunications Services (GIC) Sector Index

36 S&P/ASX 200 Utilities (GIC) Sector Index

37 S&P/ASX 300 Share Price Index

38 S&P/ASX All Industrials Share Price Index

39 S&P/ASX All Resources Share Price Index

40 S&P/ASX Gold Share Price Index

41 S&P/ASX Small Ordinaries Accumulation Index

42 S&P/ASX Small Ordinaries Share Price Index

Schedule 8C Modifications of Part 7.5 of the Act — compensation regimes

(regulation 7.5.01A)

1 Subsection 880B (1), definition of fidelity fund, subparagraph (b) (ii)

omit

markets;

insert

markets; or

2 Subsection 880B (1), definition of fidelity fund, after paragraph (b)

insert

3 Subsection 881A (2)

substitute

(1A) If:

(a) compensation arrangements under Division 4 apply to only some financial products acquired or disposed of through a licensed market; and

(b) paragraphs (1) (a) and (b) are satisfied for the other products acquired or disposed of through the licensed market;

there must be compensation arrangements in relation to the other products that are approved in accordance with Division 3.

(2) The compensation regime that applies to a financial market is:

(a) for a financial product to which Division 3 applies — the compensation regime constituted by Division 3; and

(b) for a financial product to which Division 4 applies — the compensation regime constituted by Division 4.

4 Paragraph 885C (1) (b)

substitute

(b) the money or other property, or the authority, was given to the participant in connection with effecting a transaction, or proposed transaction, that:

(i) was covered by provisions of the operating rules of the market relating to transactions effected through the market; and

(ii) related to a particular financial product that was not covered by the compensation regime constituted by Division 4; and

5 Section 885D, heading

substitute

885D Certain losses that are or are not Division 3 losses

6 Subsection 885D (2)

substitute

(2) If, in relation to a loss suffered by a person:

(a) the requirements of subsection 885C (1) are satisfied in relation to a participant and a financial market, except that it is not reasonably apparent whether the compensation regime constituted by Division 3 or by Division 4 covered the transaction, or proposed transaction; and

(b) the relevant financial market has both Division 3 and Division 4 arrangements; and

(i) the person did not (expressly or impliedly) instruct the participant to use the money or other property to enter into a transaction that would be covered by the compensation regime constituted by Division 3 or by Division 4; or

(ii) if the participant had authority to enter into transactions on the person’s behalf without specific authority, there is no evidence that the participant decided to use the money or other property to enter into a transaction that would be covered by the compensation regime constituted by Division 3 or by Division 4; and

(d) the participant was permitted to trade in products that would be covered by the compensation regimes constituted by Division 3 and by Division 4; and

(e) it is not reasonably apparent from the usual business practice of the participant which of those transactions the participant proposed to undertake;

the loss is taken to be a Division 3 loss and not to be a loss that is connected with a financial market to which Division 4 applies.

7 Subsection 885J (1)

omit

adequate,

insert

adequate for the market, or segment of the market, for which the arrangements apply,

8 Section 887A

substitute

887A Markets to which this Division applies

(1) This Division applies to a financial market that is operated by:

(a) a body corporate that is a member of the SEGC; or

(b) a body corporate that is a subsidiary of such a member.

(2) However, this Division does not apply to a market mentioned in subsection (1):

(a) that the regulations state is not covered by this Division; or

(b) to the extent that it involves financial products covered by the compensation regime constituted by Division 3.

9 After subsection 889J (1)

insert

(1A) However, a levy is payable only by an operator or a participant (including a participant who is suspended), in a financial market to which this Division applies, who is permitted to trade on that market a financial product to which this Division applies.

10 After subsection 889K (2)

insert

(2A) However, a levy is payable only by a participant (including a participant who is suspended), in a financial market to which this Division applies, who is permitted to trade on that market a financial product to which this Division applies.

10A After subsection 892B (1), including the note

insert

(1A) Nothing in subsection (1) prevents the Minister approving, in accordance with section 884C, a change to Division 3 arrangements that includes the withdrawal of money from an account or accounts holding a fidelity fund.

11 Paragraph 892K (1) (a)

after

report

insert

for a set of compensation arrangements

Schedule 9 Authorised trustee corporations

(regulation 7.11.02)

Column 1	Column 2
Item	Authorised trustee corporations
1	ANZ Executors Nominees Limited
2	ANZ Executors Nominees (N.S.W.) Limited
3	ANZ Executors & Trustee Company Limited
4	ANZ Executors & Trustee Company (Canberra) Limited
5	ANZ Executors & Trustee Company (South Australia) Limited
5A	AXA Trustees Limited
6	Bagot’s Executor and Trustee Company Limited
7	Bank of New South Wales Nominees Pty Limited
8	Burns Philp Trustee Company (Canberra) Limited
9	Burns Philp Trustee Company Limited
9A	CHESS Depositary Nominees Pty Limited
10	Commercial Nominees Pty Limited
11	Eagle Star Trustees Limited
12	Executor Trustee Australia Limited
14A	Guardian Trust Australia Limited
15	Hunter Nominees Pty Limited
15AA	IOOF Australia Trustees Limited
15AB	IOOF Australia Trustees (N.S.W.) Limited
15A	Inteq Custodians Limited
16	National Australia Trustees Limited
18	National Nominees Limited
19	P.T.A. Nominees Limited
19A	Permanent Custodians Limited
19B	Permanent Depository Limited
19C	Permanent Nominees (Aust.) Limited
19D	Permanent Trustee Australia Limited
20	Permanent Trustee Company Limited
22	Permanent Trustee Company (Canberra) Limited
23	Perpetual Nominees Limited
24	Perpetual Trustee Company (Canberra) Limited
25	Perpetual Trustee Company Limited
26	Perpetual Trustees and National Executors of Tasmania Limited
27	Perpetual Limited
28	Perpetual Trustees (W.A.) Limited
29	Perpetual Trustees Queensland Limited
30	Public Trustee of Queensland
31	Public Trustee of South Australia
32	Public Trustee of New South Wales
33	Public Trustee of Tasmania
34	State Street Australia Limited
35	State Trust Corporation of Victoria
36	Public Trustee of Western Australia
37	Public Trustee for the Australian Capital Territory
38	Public Trustee for the Northern Territory under the Public Trustee Act 1979 of the Northern Territory
40	Sandhurst Trustees Limited
41	Sepon (Australia) Pty. Limited
41A	Superannuation Nominees Pty Limited
42	TEA (1983) Limited
43	Tasmanian Permanent Executors and Equity Trustees Limited
44	The Equity Trustees Company of Tasmania Limited
45	The Equity Trustees Executors and Agency Company Limited
46	The Perpetual Executors and Trustees Association of Australia Limited
47	The Union Fidelity Trustee Company of Australia Limited
47AA	Tower Trust Limited
47A	Trustees of Western Australia Limited
48	Union Trustee Company (Canberra) Limited
49	Westpac Custodian Nominees Limited
50	Winchcombe Carson Trustee Company (Canberra) Limited.

Schedule 10 Disclosure of fees and other costs

(regulations 7.9.16K, 7.9.16M and 7.9.16N)

Part 1 Interpretation

101 Definitions

In this Schedule:

adviser service fee means an amount that is:

(a) paid or payable to a financial adviser for financial product advice to a retail client or product holder about an investment; and

(b) not included in a contribution fee, withdrawal fee, termination fee, establishment fee or management cost.

balanced investment option means an investment option in which the ratio of investment in growth assets, such as shares or property, to investment in defensive assets, such as cash or bonds, is as close as practicable to 70:30.

brokerage means an amount paid or payable to a broker for undertaking a transaction for the acquisition or disposal of a financial product.

buy‑sell spread means an amount, deducted from the value of a financial product of a member or product holder, that represents an apportionment, among members or product holders, of the actual or estimated transaction costs incurred by the fund.

contribution fee means an amount paid or payable against the initial, and any subsequent, contributions made into a product by or for a retail client for the product.

Note A contribution may be made by an employer on behalf of the product holder or retail client.

distribution costs means the costs or amounts paid or payable for the marketing, offer or sale of a product.

Note This includes any related adviser remuneration component other than an adviser service fee.

establishment fee means an amount paid or payable for the establishment of a client’s interest in a product.

Note This does not include contribution fees paid or payable against the initial contribution into the product.

incidental fees means costs or amounts, other than costs or fees defined in this clause, that are:

(a) paid or payable in relation to the product; and

(b) not material to a retail client’s decision to acquire, hold or dispose of his or her interest in the product.

Example

Cheque dishonour fees.

performance, of a product or a fund, includes:

(a) income in relation to the assets of the product or fund; and

(b) capital appreciation (realised or unrealised) to the value of the product or fund.

performance fee means an amount paid or payable, calculated by reference to the performance of a product or fund.

service fees means adviser service fees, special request fees and switching fees.

special request fees includes fees paid or deducted from a member or product holder’s financial product for a request made to the fund.

Example

This applies to a fee for a request for additional information from a fund.

switching fee means an amount paid or payable when a product holder transfers all or part of the product holder’s interest in the financial product from one investment option to another.

termination fee means an amount paid or payable on the disposal of all interests held in a financial product.

withdrawal fee means an amount, other than a termination fee, paid or payable in respect of:

(a) a withdrawal; or

(b) the disposal of an interest in a product.

102 Management costs

(1) Management costs means any of the following:

(a) in relation to a product or fund — an amount payable for administering the fund;

(b) for a custodial arrangement — the cost involved, or amount paid or payable, for gaining access to, or participating in, the arrangement;

(d) other expenses and reimbursements in relation to a product or fund;

(e) amounts paid or payable for investing in the assets of the fund;

(f) amounts deducted from a common fund by way of fees, costs, charges or expenses, including:

(i) amounts retrieved by an external fund manager or a product issuer; and

(ii) amounts deducted from returns before allocation to the fund;

(g) estimated performance fees;

(h) any other investment‑related expenses and reimbursements, including any associated with custodial arrangements.

(2) The following fees and costs are not management costs:

(a) a contribution fee;

(b) transactional and operational costs;

(d) an establishment fee;

(e) a switching fee;

(f) a termination fee;

(g) a withdrawal fee;

(h) costs (related to a specific asset or activity to produce income) that an investor would incur if he or she invested directly in the asset;

(i) incidental fees.

103 Transactional and operational costs

Transactional and operational costs include the following:

(a) brokerage;

(b) buy‑sell spread;

(d) clearing costs;

(e) stamp duty on an investment transaction.

104 Indirect cost ratio

(1) The indirect cost ratio (ICR) for a fund, is the ratio of the fund’s management costs, that are not deducted directly from a member’s or product holder’s account, to the fund’s total average net assets.

Note A dollar‑based fee charged directly against a member’s account, such as a $1 per week management cost is not included in the indirect cost ratio.

(2) The ICR for a Product Disclosure Statement is to be determined for the financial year before the Product Disclosure Statement is issued.

(3) The ICR for a periodic statement is to be determined over the latest reporting period.

Part 2 Fees and Costs Template, example of annual fees and costs and Consumer Advisory Warning for Product Disclosure Statements

Division 1 The fees and costs template — multiple fee structure presentation

201 The template for a multiple fee structure

Fees and other costs

This document shows fees and other costs that you may be charged. These fees and costs may be deducted from your money, from the returns on your investment or from the fund assets as a whole.

Taxes and insurance costs are set out in another part of this document.

You have 2 different fee payment options:

(a) to pay contribution fees upfront, at the time when you make each investment into the fund; or

(b) to pay contribution fees later (for example, on the termination of your investment or by way of other increased fees).

Note You may pay more in total fees if you choose to pay contribution fees later.

You should read all the information about fees and costs because it is important to understand their impact on your investment.

[If relevant] Fees and costs for particular investment options are set out on page [insert page number].

TYPE OF FEE OR COST	AMOUNT		HOW AND WHEN PAID
	Option to pay contribution fees upfront	Option to pay contribution fees later
Fees when your money moves in or out of the fund
Establishment fee The fee to open your investment
Contribution fee1 The fee on each amount contributed to your investment – either by you or your employer
Withdrawal fee1 The fee on each amount you take out of your investment
Termination fee1 The fee to close your investment
Management costs
The fees and costs for managing your investment1 The amount you pay for specific investment options is shown at page [insert page number]
Service fees2
Investment switching fee The fee for changing investment options

1 [Where relevant] This fee includes an amount payable to an adviser. (See ‘adviser remuneration’ under the heading ‘Additional Explanation of Fees and Costs’.)

2 [If there are other service fees, such as advisor service fees or special request fees, include a cross reference to the ‘Additional Explanation of Fees and Costs’.]

Division 2 The fees and costs template — single fee structure presentation

202 The template for a single fee structure

Fees and other costs

This document shows fees and other costs that you may be charged. These fees and costs may be deducted from your money, from the returns on your investment or from the fund assets as a whole.

Taxes and insurance costs are set out in another part of this document.

You should read all the information about fees and costs because it is important to understand their impact on your investment.

[If relevant] Fees and costs for particular investment options are set out on page [insert page number].

TYPE OF FEE OR COST	AMOUNT	HOW AND WHEN PAID
Fees when your money moves in or out of the fund
Establishment fee The fee to open your investment
Contribution fee1 The fee on each amount contributed to your investment – either by you or your employer
Withdrawal fee1 The fee on each amount you take out of your investment
Termination fee1 The fee to close your investment
Management costs
The fees and costs for managing your investment1 The amount you pay for specific investment options is shown at page [insert page number]
Service fees2
Investment switching fee The fee for changing investment options

1 [Where relevant] This fee includes an amount payable to an adviser. (See ‘adviser remuneration’ under the heading ‘Additional Explanation of Fees and Costs’.)

2 [If there are other service fees, such as advisor service fees or special request fees, include a cross reference to the ‘Additional Explanation of Fees and Costs’.]

Division 3 How to fill in the template

203 The preamble

The material in the preamble to the template should only include matters that are relevant to the product.

Example

Insurance costs will generally not be relevant to a managed investment product.

204 Column 2 — presentation of amounts

(1) This clause, clause 205 and clause 206 are subject to regulations 7.9.15A, 7.9.15B and 7.9.15C.

(2) If a particular fee or cost is not charged, ‘nil’, ‘zero’, ‘0’ or ‘not applicable’ (if it would not be misleading) must be written in column 2 opposite the type of fee or cost.

(3) If it is not possible to determine a single amount or percentage of a fee or cost, it may be written as a range of fees or costs.

(4) If the exact amount of a fee or cost paid or payable is not known, an amount that is a reasonable estimate of the amount attributable to the retail client must be shown.

(5) An amount set out in accordance with subclause (4) must be clearly designated as an estimate.

(6) If an amount or cost has a number of components, the amount of each component must be listed separately.

Example

Management costs: 1.8% of member balance + $70 per year.

(7) A cost or amount paid or payable must include, if applicable:

(a) GST less any reduced inputs tax credits; and

(b) stamp duty.

205 Column 2 — presentation of multiple investment options

If a fund has multiple investment options, the fee information for each investment option can be:

(a) set out in the table; or

(b) cross‑referenced in the table to another section of the Product Disclosure Statement that contains the relevant fee information.

206 Presentation of multiple fee payment options

If a fund has more than 2 options for the payment of fees:

(a) the number of fee payment options must be set out in the preamble; and

(b) details of all fee payment options must be set out in the template.

207 Column 3 — how and when fees and costs are payable

Column 3 of the template must set out:

(a) how the fee is or will be recovered, for example by deduction from:

(i) the member’s investment balance; or

(ii) the fund’s assets; or

(iii) contributions; or

(iv) withdrawals; and

(b) the recurrence of the recovery of the fee; and

208 Other material to be included in the template

(1) The template must clearly indicate which fees and costs are negotiable (for example, by stating in column 3 ‘The amount of this fee can be negotiated.’).

(2) An indication that a fee or cost is negotiable must be cross‑referenced to an explanation outside the template in the ‘Additional Explanation of Fees and Costs’ part of the fees section.

Division 4 Additional explanation of fees and costs

209 Matters to be included as additional explanation of fees and costs

The following information, if relevant to the particular fund or product, must be included under the heading ‘Additional Explanation of Fees and Costs’:

(a) the explanation of service fees mentioned in footnote 2;

(b) information on performance fees including:

(i) a statement that the management costs part of the template includes performance fees; and

(ii) the method for calculating the fees; and

(iii) the amount of the fees, or an estimate of the amount if the amount is not known;

(d) if the product is subject to tax — whether the benefit of any tax deduction is passed on to the investor in the form of a reduced fee or cost;

(e) an explanation of adviser remuneration that forms part of any fee or cost in the table, including (if known to the fund):

(i) the method of calculation; and

(ii) the amounts of commission or the range of amounts; and

(iii) whether the amounts are negotiable or rebatable; and

(iv) the way in which amounts may be negotiated or rebated;

(f) an explanation of advisor service fees;

(g) for a negotiated fee or cost — contact details of the person or body with whom the fee or cost can be negotiated and the manner of negotiation;

(h) worked examples (if appropriate);

(i) additional details of incidental fees (if appropriate);

(j) details of transactional and operational costs such as brokerage and buy‑sell spread, including:

(i) a description of the cost; and

(ii) the amount, or an estimate if the amount is not known; and

(iii) how and when the costs are recovered; and

(iv) a statement that the cost is an additional cost to the investor; and

(v) whether any part of the buy‑sell spread is paid to the product issuer or an external manager;

(k) the following information about fee changes:

(i) if applicable, a statement about the issuer’s right to change the amount of fees without the investor’s consent;

(ii) any indexation arrangements that apply;

(iii) the period of advance notice required for fee changes;

(iv) any change in fee structure that is dependent on a person’s employment;

(l) if the issuer has instituted a flexible charging structure, for each applicable fee, if known:

(i) any maximum, and when it would apply; and

(ii) any waiver, and when it would not apply;

(m) for a superannuation fund — details regarding the protection of small accounts (member protection rules) unless already included in the Product Disclosure Statement.

Division 5 Example of annual fees and costs

210 Example of annual fees and costs

The example of annual fees and costs:

(a) must contain fees and costs in accordance with the table in clause 211 or 212; and

(b) must be set out using the headings and the form in clause 211 or 212; and

211 Example of annual fees and costs for superannuation funds

Example of annual fees and costs for a balanced investment option

This table gives an example of how the fees and costs in the balanced investment option for this product can affect your superannuation investment over a 1 year period. You should use this table to compare this product with other superannuation products.

EXAMPLE — the Balanced Investment Option		BALANCE OF $50 000 WITH TOTAL CONTRIBUTIONS OF $5 000 DURING YEAR
Contribution Fees	0‑4%	For every $5 000 you put in, you will be charged between $0 and $200.
PLUS Management Costs	1.6% + $52 ($1 per week)	And, for every $50 000 you have in the fund you will be charged $800 each year plus $52 in administration fees regardless of your balance.
EQUALS Cost of fund		If you put in $5 000 during a year and your balance was $50 000, then for that year you will be charged fees of from: $852 to $1 052* What it costs you will depend on the investment option you choose and the fees you negotiate with your fund or financial adviser.

* Additional fees may apply:

Establishment fee — $50

And, if you leave the fund early, you may also be charged withdrawal fees of between 0 and 5% of your total fund balance (between $0 and $2 500 for every $50 000 you withdraw).

212 Example of annual fees and costs for managed investment products

Example of annual fees and costs for a balanced investment option

This table gives an example of how the fees and costs in the balanced investment option for this product can affect your investment over a 1 year period. You should use this table to compare this product with other managed investment products.

EXAMPLE — the Balanced Investment Option		BALANCE OF $50 000 WITH A CONTRIBUTION OF $5 000 DURING YEAR
Contribution Fees	0‑4%	For every additional $5 000 you put in, you will be charged between $0 and $200.
PLUS Management Costs	1.3%	And, for every $50 000 you have in the fund you will be charged $650 each year.
EQUALS Cost of fund		If you had an investment of $50 000 at the beginning of the year and you put in an additional $5 000 during that year, you would be charged fees of from: $650 to $850* What it costs you will depend on the investment option you choose and the fees you negotiate with your fund or financial adviser.

* Additional fees may apply:

Establishment fee — $50

And, if you leave the fund early, you may also be charged withdrawal fees of between 0 and 5% of your total fund balance (between $0 and $2 500 for every $50 000 you withdraw)

213 Defined benefit funds

An example of fees and costs is not required in a Product Disclosure Statement for a defined benefit fund.

Note Defined benefit fund is defined in subregulation 1.03 (1) of the SIS Regulations.

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

214 Fees and costs must be ongoing amounts

The fees and costs stated in the example must be the typical ongoing fees that apply to the product or investment option.

Note The example should not be based on ‘honeymoon rates’. It must be consistent with the statement for an existing member of the fund having the stated balance and level of contributions each year.

215 Minimum entry balance rule

If the minimum balance required to enter a fund is greater than $50 000, the example of annual fees and costs must be based on an amount that is the lowest multiple of $50 000 that exceeds the minimum entry balance.

Example

If a fund has a minimum entry balance of $65 000, the relevant amount for the example of annual fees and costs is $100 000.

216 Termination fees

If a termination fee may be charged, it must be described in a footnote to the table in the same way as a withdrawal fee, based on:

(a) a balance of $50 000; or

(b) if clause 215 applies — an amount that is a multiple of $50 000.

217 Contribution fees

(1) The amounts of contribution fees to be inserted in the example of annual fees and costs for a superannuation product or a managed investment product, are applied against a $5 000 investment.

(2) If a Product Disclosure Statement relates to a product:

(a) that is paid for by a single lump sum amount; and

(b) for which no additional contributions can be made;

the example of annual fees and costs should be modified by removing references to contributions or contribution fees.

(3) The example must be based on a balance:

(a) of $50 000; or

(b) worked out in accordance with clause 215.

Note If there is a fee paid for the initial contribution, it should be described as the establishment fee.

218 Management costs

(1) The example of management costs for a superannuation product or a managed investment product 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.

(2) Management costs that are not deducted directly from a member’s or product holder’s account must be calculated using the indirect cost ratio for the fund.

(3) Any percentage‑based management costs that are deducted directly from a member’s or product holder’s account should be added to the percentage amount calculated under subclause (2).

(4) Dollar‑based management costs that are deducted directly from a member’s or product holder’s account must be shown separately in the management costs cell.

Example

PLUS Management costs: 1.6% + $52 per year ($1 per week).

219 Withdrawal fees and termination fees

(1) The example of a withdrawal fee or a termination fee for a superannuation product or a managed investment product is applied against an amount of $50 000 or an amount that is a multiple of $50 000 if clause 215 applies.

(2) In calculating the amount, do not include contributions that may be made during the year.

220 If there is no balanced investment option

(1) If a fund does not offer an investment option similar to a balanced investment option, the example should be based on the fund’s default investment option.

(2) If a fund does not have a balanced investment option or a default investment option, the example should be based on the investment option under which the fund has the most funds invested.

Division 7 Consumer Advisory Warning

221 Consumer advisory warning

DID YOU KNOW?

Small differences in both investment performance and fees and costs can have a substantial impact on your long term returns.

For example, total annual fees and costs of 2% of your fund balance rather than 1% could reduce your final return by up to 20% over a 30 year period
(for example, reduce it from $100 000 to $80 000).

You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs.

You may be able to negotiate to pay lower contribution fees and management costs where applicable. Ask the fund or your financial adviser.

TO FIND OUT MORE

If you would like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities and Investments Commission (ASIC) website (www.fido.asic.gov.au) has a [superannuation or managed investment fee] calculator to help you check out different fee options.

222 Where to place the Consumer Advisory Warning

The Consumer Advisory Warning must be located at the beginning of the fees section of the Product Disclosure Statement.

Part 3 Fees and costs in periodic statements

Division 1 Other Management Costs

301 Other management costs in the periodic statement

(1) The following text and the appropriate amount, in dollars, must be inserted after the part of the periodic statement that itemises transactions during the period.

OTHER MANAGEMENT COSTS

This approximate amount has been deducted from your investment and includes all the other management costs that were not paid directly out of your account.

(2) Other management costs include all management costs not deducted directly from a member’s or product holder’s account during the reporting period and must be shown as a single total amount in dollars.

(3) Other management costs are calculated by multiplying the indirect cost ratio for the investment option by the member’s or product holder’s average account balance over the reporting period.

Division 2 Total fees

302 Total of fees in the periodic statement

(1) The following text and the appropriate amount, in dollars, must be displayed:

(a) at the end of the part of the periodic statement that itemises transactions during the period; or

(b) in a summary part of the periodic statement.

TOTAL FEES YOU PAID

This approximate amount includes all the fees and costs which affected your investment during the period.

(2) The total fees you paid are the total of all fees and costs disclosed in the periodic statement.

Division 3 Additional Explanation of Fees and Costs

303 Matters to be included as additional explanation of fees and costs

The following information must be included in the periodic statement under the heading ‘Additional Explanation of Fees and Costs’, if it has not been included in another part of the periodic statement:

(a) details of incidental fees, such as cheque dishonour fees that were incurred by the member or product holder during the period;

(b) details of any service fees that may have been incurred by the member or product holder;

(c) for a product that is subject to tax — whether the benefit of any tax deduction has been passed on to the investor in the form of a reduced fee or cost.

Schedule 10A Modifications of Part 7.9 of the Act

(regulations 7.9.02, 7.9.04, 7.9.05, 7.9.06, 7.9.10B, 7.9.11, 7.9.11C, 7.9.11N, 7.9.11V, 7.9.12, 7.9.24, 7.9.27, 7.9.30, 7.9.43, 7.9.47, 7.9.51, 7.9.56, 7.9.60, 7.9.61, 7.9.63, 7.9.73 and 8.4.02)

Part 1 Modifications relating to sub‑plans

1.1 Paragraph 1012D (10) (b)

substitute

(b) a superannuation product is the same as another superannuation product only if the other superannuation product is:

(i) an interest in the same sub‑plan; or

(ii) if there is no sub‑plan — an interest in the same fund.

Part 2 Modifications relating to Product Disclosure Statements for RSA products

2.1 After subsection 1012D (9B)

insert

Recommendation, issue or sale situation — takeover or merger

(9C) In a recommendation situation, issue situation or sale situation, the issuer does not have to give a Product Disclosure Statement if a person:

(a) becomes the holder of an RSA with an RSA institution; and

(b) does so as a direct result of:

(i) the takeover of the RSA provider with which the person previously held an RSA by:

(A) the RSA institution; or

(B) a corporation that is a related corporation of the RSA institution; or

(ii) a merger involving the RSA provider with which the person previously held an RSA and which results in the creation of the RSA institution; or

(iii) the transfer of any, or all of, the assets and liabilities of the RSA provider with which the person previously held an RSA to the RSA institution:

(A) under a provision of the Banking Act 1959, the Life Insurance Act 1995 or of any other law of the Commonwealth, a State or a Territory; or

(B) under a voluntary transfer of engagements; or

Part 3 Modifications relating to insurance options under contract associated with superannuation interest

3.1 After subsection 1012D (9B)

insert

Insurance options

(9C) A product issuer does not have to give a Product Disclosure Statement to a person if:

(a) a product holder seeks to change the coverage of insurance options under a contract associated with a superannuation interest; and

(b) information in relation to the change of insurance options has not already been given in a periodic statement or in accordance with other periodic reporting requirements under Division 3.

(9D) If subsection (9C) applies:

(a) the product issuer must ensure that the product holder has sufficient information to enable the product holder to make an informed decision; and

(b) that subsection does not prevent the product issuer from complying with paragraph (a) by giving the product holder a Product Disclosure Statement.

Part 5 Modifications relating to First Home Saver Accounts

5.1 Subsection 946AA (4)

omit

The

insert

Subject to subsection (5A), the

5.2 Subsection 946AA (5)

omit

The

insert

Subject to subsection (5A), the

5.3 After subsection 946AA (5)

insert

(5A) Subsections (4) and (5) do not apply if the small investment advice is about a capital guaranteed FHSA product.

5.4 Paragraph 1013C (1) (a)

substitute

(a) must:

(i) include the statements and information required by regulations made for this subparagraph; and

(ii) be in the form required by regulations made for this subparagraph; and

5.5 Subsection 1013C (1), note

omit

5.6 Subsection 1013C (2)

omit

sections 1013D and 1013E

insert

subparagraph (1) (a) (i)

5.7 After subsection 1013C (7)

insert

(8) Regulations made for subparagraph (1) (a) (i) or (ii) may authorise ASIC to determine or amend the statements and information included in, and the form of, a Product Disclosure Statement.

5.8 Sections 1013D and 1013E

omit

5.9 Subsection 1013L (7)

substitute

(7) The regulations may:

(a) prescribe circumstances in which a Product Disclosure Statement must not be made up of 2 or more documents; and

(b) impose additional requirements to be complied with if a Product Disclosure Statement is made up of 2 or more documents.

5.10 Section 1013M, at the foot

insert

Note A Product Disclosure Statement for an FHSA product cannot be combined with a Financial Services Guide in a single document — see subsection 942DA (3) and subregulation 7.7.08A (1A) of the Corporations Regulations 2001.

5.11 After section 1013M

insert

1013N Combining Product Disclosure Statement and another document

A Product Disclosure Statement must not be attached to, or combined with, another document.

Note 1 A Product Disclosure Statement itself may be given as 2 or more documents in certain circumstances — see section 1013L and regulation 7.9.10C of the Corporations Regulations 2001.

Note 2 A Product Disclosure Statement may be given to a person along with other documents, but must generally be the first document given — see regulation 7.9.10D of the Corporations Regulations 2001.

5.12 Part 7.9, Division 2, Subdivision D

omit

Part 5A Modifications for margin loan

5A.1 Section 1011B, after definition of regulated person

insert

Regulations means the Corporations Regulations 2001.

5A.2 Subsection 1013C (1)

substitute

(1) A Product Disclosure Statement for a margin loan to which Subdivision 4.2A of Division 4 of Part 7.9 of the Corporations Regulations 2001 applies must:

(a) include the statements and information required by regulations made for this paragraph; and

(b) be in the form required by regulations made for this paragraph.

(1A) If a law other than this Act or regulations under this Act requires the responsible person for the Product Disclosure Statement:

(a) to give, disclose or provide a matter; or

(b) to include a matter in the Statement;

the Statement may make provision for the matter by applying, adopting or incorporating the matter as in force at a particular time or as in force from time to time.

(1B) In addition to subsection (1A), a Product Disclosure Statement may make provision for a matter contained in writing by applying, adopting or incorporating the matter as in force at a particular time or as in force from time to time.

(1C) If a Product Disclosure Statement applies, adopts or incorporates a matter contained in writing:

(a) the applied, adopted or incorporated matter forms part of the Statement; and

(b) the responsible person for the Statement is not required to give the document which provides for the matter to a person (as part of giving the Statement or later) if that person has not asked for the document; and

(c) the responsible person for the Statement must give the document which provides for the matter to a person if that person asks for the document.

(1D) The regulations may prescribe requirements for applying, adopting, or incorporating a matter contained in writing in a Product Disclosure Statement.

(1E) A Product Disclosure Statement may refer to information, other than information to which subsection (1A) or (1B) applies, that is set out in another document; and

(1F) If the Product Disclosure Statement refers to other information as permitted by subsection (1E), that information does not form part of the Statement.

Note Although the information mentioned in subsection (1F) would not form part of the Product Disclosure Statement, it would be subject to requirements imposed by the Act or these Regulations such as the prohibition on making misleading or deceptive statements.

5A.3 Section 1013D

omit

5A.4 Section 1013E

omit

5A.5 Section 1013L

substitute

1013L When Product Disclosure document may consist of 2 or more documents

A Product Disclosure Statement may consist of 2 or more documents, only if:

(a) one of the documents is a document that complies with the requirements for a Product Disclosure Statement under this Act and the Regulations; and

(b) the other document or documents contain a matter in writing that is applied, adopted or incorporated by the document mentioned in paragraph (a).

5A.6 Subdivision D, Division 2

omit

5A.7 Subsection 1015D (3)

omit

Part 5B Modifications for superannuation products to which Subdivision 4.2B of Division 4 of Part 7.9 applies

5B.1 Section 1011B, after definition of regulated person

insert

Regulations means the Corporations Regulations 2001.

5B.2 Subsection 1013C (1)

substitute

(1) A Product Disclosure Statement for a superannuation product to which Subdivision 4.2B of Division 4 of Part 7.9 of the Corporations Regulations 2001 applies must:

(a) include the statements and information required by regulations made for this paragraph; and

(b) be in the form required by regulations made for this paragraph.

(1A) If a law other than this Act or regulations under this Act requires the responsible person for the Product Disclosure Statement:

(a) to give, disclose or provide a matter; or

(b) to include a matter in the Statement;

the Statement may make provision for the matter by applying, adopting or incorporating the matter as in force at a particular time or as in force from time to time.

(1C) If a Product Disclosure Statement applies, adopts or incorporates a matter contained in writing:

(a) the applied, adopted or incorporated matter forms part of the Statement; and

(c) the responsible person for the Statement must give the document which provides for the matter to a person if that person asks for the document.

(1D) The regulations may prescribe requirements for applying, adopting, or incorporating a matter contained in writing in a Product Disclosure Statement.

(1E) A Product Disclosure Statement may refer to information, other than information to which subsection (1A) or (1B) applies, that is set out in another document; and

(1F) If the Product Disclosure Statement refers to other information as permitted by subsection (1E), that information does not form part of the Statement.

5B.3 Section 1013D

omit

5B.4 Section 1013E

omit

5B.5 Section 1013L

substitute

1013L When Product Disclosure Statement may consist of 2 or more documents

A Product Disclosure Statement may consist of 2 or more documents only if:

(a) one of the documents is a document that complies with the requirements for a Product Disclosure Statement under this Act and the Regulations; and

(b) the other document or documents contain a matter in writing that is applied, adopted or incorporated by the document mentioned in subparagraph (a).

5B.6 Subsection 1015D (3)

omit

Part 5C Modifications for simple managed investment scheme

5C.1 Section 1011B, after definition of regulated person

insert

Regulations means the Corporations Regulations 2001.

5C.2 Subsection 1013C (1)

substitute

(1) A Product Disclosure Statement for a simple managed investment scheme to which Subdivision 4.2C of Division 4 of Part 7.9 of the Corporations Regulations 2001 applies must:

(a) include the statements and information required by regulations made for this paragraph; and

(b) be in the form required by regulations made for this paragraph; and

(1A) If a law other than this Act or regulations under this Act requires the responsible person for the Product Disclosure Statement:

(a) to give, disclose or provide a matter; or

(b) to include a matter in the Statement;

the Statement may make provision for the matter by applying, adopting or incorporating the matter as in force at a particular time or as in force from time to time.

(1C) If a Product Disclosure Statement applies, adopts or incorporates a matter contained in writing:

(a) the applied, adopted or incorporated matter forms part of the Statement; and

(c) the responsible person for the Statement must give the document which provides for the matter to a person if that person asks for the document.

(1D) The regulations may prescribe requirements for applying, adopting, or incorporating a matter contained in writing in a Product Disclosure Statement.

(1E) A Product Disclosure Statement may refer to information, other than information to which subsection (1A) or (1B) applies, that is set out in another document; and

(1F) If the Product Disclosure Statement refers to other information as permitted by subsection (1E), that information does not form part of the Statement.

5C.2 Section 1013D

omit

5C.3 Section 1013E

omit

5C.4 Section 1013L

substitute

1013L When Product Disclosure Statement may consist of 2 or more documents

A Product Disclosure Statement may consist of 2 or more documents only if:

(a) one of the documents is a document that complies with the requirements for a Product Disclosure Statement under this Act and the Regulations; and

(b) the other document or documents contain a matter in writing that is applied, adopted or incorporated by the document mentioned in subparagraph (a).

5C.5 Subsection 1015D (3)

omit

Part 6 Modifications relating to application forms and Product Disclosure Statements for standard employer‑sponsor arrangements and successor funds

6.1 After subsection 1016A (2)

insert

(2A) Subsection (2) does not apply in relation to a member who:

(a) held an interest in a superannuation fund as a standard employer‑sponsored member; and

(b) is issued with an interest in relation to another sub‑plan of the superannuation fund as a result of a transfer related to the cessation of the member’s employment with the employer‑sponsor.

6.2 After subsection 1016A (3)

insert

(3A) Subsection (3) does not apply in relation to a superannuation product if:

(a) the issuer is a public offer entity that is a successor fund; and

(b) an employer became a standard employer‑sponsor of a fund in the following way:

(i) the employer was a standard employer‑sponsor of a fund (fund 1);

(ii) the benefits of members in fund 1 were transferred to a successor fund;

(iii) the employer was a standard employer‑sponsor of fund 1 immediately before those benefits were so transferred;

(iv) the employer was a standard employer‑sponsor of the successor fund immediately after those benefits were so transferred.

6.3 After subsection 1012D (9)

insert

Recommendation, issue or sale situation — successor fund

(9A) In a recommendation situation, issue situation or sale situation, a regulated person does not have to give the client a Product Disclosure Statement if:

(a) the financial product is an RSA product; and

(b) subsection 1012I (2) applies.

Part 7 Modifications relating to life pensioners, members subject to compulsory protection of small amounts and members with small amounts that are expected to grow quickly

7.1 After subsection 1017D (7)

insert

(8) The trustee of a fund need not give a periodic statement or other information to a member:

(a) in relation to any period during which the member is a life pensioner of the fund; or

(b) if the member is a pensioner of the fund, and has requested that that information not be provided.

(9) Subsection (8) does not apply to information mentioned in subregulation 7.9.21A (1) of the Corporations Regulations 2001.

(10) If, at the end of a reporting period, a member of a regulated superannuation fund is a protected member, the trustee need give the member only the following information in the periodic statement for that reporting period:

(a) the contact details of the fund;

(b) either:

(i) the amount of the member’s withdrawal benefit at the end of the reporting period; or

(ii) the total of the amounts that have been received by the fund in respect of the member;

(11) If, in relation to a member of a fund, the trustee of the fund takes advantage of subsections (12) to (15), the trustee must not, in relation to that member, take advantage of subsection (10).

(12) If, at the end of a reporting period, the trustee of a fund has a reasonable expectation that a particular protected member will have a withdrawal benefit of at least $1 500 within 12 months after the end of that reporting period, the trustee need not show, in the periodic statement, the effect of the member‑protection standards.

(13) For subsection (12), a trustee is not taken to have a reasonable expectation that a member will have a withdrawal benefit of at least $1 500 within the period of 12 months referred to in that subsection if termination of the member’s employment with a current employer (not being an employer who or that is an associate, within the meaning of paragraph 70 (a) of the SIS Act, of the member) would be likely to result in the member’s withdrawal benefit being below $1 500 at the end of that period.

(14) If, at the end of the 12‑month period, the member’s withdrawal benefit has not reached $1 500, the trustee must show, in the periodic statement provided to the member for each reporting period ending on or after the end of the 12‑month period, the effect of the member‑protection standards.

(15) The trustee of a fund must not take advantage of subsection (12) in respect of a person more than once unless, after an occasion on which the trustee does so but before the next occasion, the member leaves and rejoins the fund.

(16) In this section:

mandated employer‑financed benefits has the same meaning as in subregulation 5.01 (1) of the Superannuation Industry (Supervision) Regulations 1994.

member protection standards has the same meaning as in the Superannuation Industry (Supervision) Regulations 1994.

protected member has the same meaning as in the Superannuation Industry (Supervision) Regulations 1994.

(17) For the definition of protected member in subsection (16), a benefit in a fund is taken to contain or to have contained mandated employer‑financed benefits unless:

(a) if the benefits arose in relation to contributions made before 1 July 1995 — the trustee of the fund reasonably believes otherwise; or

(b) if the benefits arose in relation to contributions made on
or after 1 July 1995 — the trustee of the fund knows otherwise.

Part 8 Modifications relating to periodic statements for RSA providers

8.1 After subsection 1017D (7)

insert

(8) If:

(a) a person ceases to be an RSA holder before RSA information in respect of a particular reporting period (the relevant period) is given; and

(b) either:

(i) the RSA provider gives, or intends to give, information to the person in respect of a reporting period that is the same as, or includes the whole of, the relevant period; or

(ii) if the person ceases to be an RSA holder by reason of death — the RSA provider complies in relation to the person with the relevant requirements of this Act and the regulations;

the RSA provider need not give RSA information, in respect of the relevant period, to or in relation to the person.

(9) If, at the end of a reporting period, an RSA holder is a protected RSA holder, the RSA provider need give the RSA holder only the following information for the reporting period:

(a) the contact details of the RSA provider;

(b) either:

(i) the amount of the RSA holder’s withdrawal benefit at the end of the reporting period; or

(ii) the total of the amounts that have been received by the RSA provider in respect of the RSA holder;

(c) the effective rate of net interest applied to the RSA for each year of the previous 5 years ending at the end of the reporting period;

(d) the compound average of the annual effective rate of net interest applied to the RSA for each year of the previous 5 years ending at the end of the reporting period;

(e) details (in summary form) of arrangements that the RSA provider has to deal with inquiries or complaints;

(f) a statement that other information is available on request;

(g) a suggestion that the RSA holder may wish to consider:

(i) other superannuation arrangements that may provide a greater return over the long term; and

(ii) seeking advice on alternative investment strategies that may be more suitable;

(h) if the RSA provider reduced the RSA holder’s benefits
in connection with payment of a superannuation contributions surcharge or an advance instalment of surcharge:

(i) the amount deducted; and

(ii) if there is a difference between the amount deducted and the amount assessed under subsection 15 (1) of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 or between the amount deducted and the amount determined under subsection 15 (2) of that Act — a statement explaining the difference.

(10) A nil amount need not be disclosed.

(11) If, in relation to an RSA holder, the RSA provider takes advantage of subsections (13) to (16), the RSA provider must not, in relation to the RSA holder, take advantage of subsection (9).

(12) If, at the end of a reporting period, an RSA has not been in existence for 5 years, the references in paragraphs (9) (c) and (d) to 5 years are taken to be references to the whole period of existence of the RSA.

(13) If, at the end of a reporting period, an RSA provider has a reasonable expectation that an RSA holder will have a withdrawal benefit of at least $1 500 within 12 months after the end of the reporting period, the RSA provider need not show, in RSA information provided to the RSA holder, the effect of the RSA holder‑protection standards.

(14) For subsection (12), an RSA provider is not taken to have a reasonable expectation that the RSA holder will have a withdrawal benefit of $1 500 within the period of 12 months mentioned in that subsection if termination of the RSA holder’s employment with a current employer would be likely to result in the RSA holder’s withdrawal benefit being below $1 500 at the end of that period.

(15) If, at the end of the 12‑month period, the RSA holder’s withdrawal benefit has not reached $1 500, the RSA provider must show, in RSA information provided to the RSA holder for each reporting period ending on or after the end of the 12‑month period, the effect of the RSA holder‑protection standards.

(16) An RSA provider must not take advantage of subsection (13) in respect of a person more than once unless, after an occasion on which the RSA provider does so but before the next occasion, the person ceases to be the holder of the RSA and subsequently becomes the holder of an RSA provided by the same RSA provider.

(17) In this section:

mandated employer‑financed benefits has the same meaning as in the Retirement Savings Accounts Regulations 1997.

protected member has the same meaning as in the Retirement Savings Accounts Regulations 1997.

RSA holder‑protection standards has the same meaning as in the Retirement Savings Accounts Regulations 1997.

Part 9 Modifications relating to periodic statements for superannuation entities and RSA providers

9.1 After subsection 1017C (7)

insert

(7A) If:

(a) a concerned person requests information under subsection (2) or (3) in relation to a facility, under the concerned person’s existing holding of a superannuation product, to modify:

(i) an investment strategy; or

(ii) a contribution level; or

(iii) insurance coverage; and

(b) the information has not already been given in a periodic statement or in accordance with other periodic reporting requirements under Division 3;

it is sufficient compliance with a requirement imposed by this section if the responsible person provides an up to date Product Disclosure Statement that includes information on the ability and effect of making the modification.

Part 10 Modifications relating to ongoing disclosure of material changes and significant events in relation to superannuation products and RSAs

10.1 After subsection 1017B (5)

insert

Provision of advice before event

(5A) For a superannuation product or an RSA product, if a product holder would reasonably be expected to be informed of:

(a) a decision of the issuer; or

(b) the winding‑up or termination of the superannuation entity;

before it occurs, the issuer must give the product holder information about the event as soon as practicable after it becomes reasonable for the issuer to expect that the event will happen (except that the information does not need to be given more than 3 months before the expected date of the event).

Changes to governing rules or terms and conditions

(5B) For subsections 1017B (5), (6) and (7) a reference to an event includes the following:

(a) a change to the governing rules of a superannuation entity (other than a change that gives effect to a payment split) of a kind that has an adverse effect on:

(i) the amount of the relevant financial product; or

(ii) the benefits to which the holder of the relevant financial product may become entitled; or

(iii) the circumstances in which the benefits to which the holder of the relevant financial product may become entitled would become payable;

(b) a change to the terms and conditions of an RSA (other than a change that gives effect to a payment split) of a kind that has an adverse effect on:

(i) the amount of the RSA; or

(ii) the benefits to which the RSA holder may become entitled; or

(iii) the circumstances in which the benefits to which the RSA holder may become entitled would become payable;

(c) any other change in relation to an RSA, caused by any other act carried out or consented to by the issuer, of a kind that has an adverse effect on:

(i) the amount of the RSA; or

(ii) the benefits to which the RSA holder may become entitled; or

(iii) the circumstances in which the benefits to which the RSA holder may become entitled would become payable.

Notice of non‑compliance

(5C) If the issuer of a superannuation product receives a notice of non‑compliance, the issuer must give to each product holder:

(a) a statement of the circumstances (including details of the non‑compliance) that gave rise to the issue of the notice; and

(b) a statement of the effect on the fund of the issue of the notice (including details of the effect on the entity’s taxation position); and

(c) details of action that the issuer has taken, or proposes to take, to have the entity become a complying fund or a pooled superannuation trust for the purposes of Division 2 of Part 5 of the Act.

(5D) For subsection (5C), a notice of non‑compliance means a notice issued under section 40 of the SIS Act to the trustee of a fund stating that the fund is not a complying fund or a pooled superannuation trust.

Fund and RSA transfers

(5E) For subsections (5), (6) and (7), a reference to an event includes:

(a) in relation to a superannuation product:

(i) the transfer of a member to a different category of membership or to a different fund; and

(ii) the transfer of the benefits of a member to an RSA or EPSSS (otherwise than under a payment split); and

(b) in relation to an RSA product — the transfer of an amount of an RSA (otherwise than under a payment split) to:

(i) another RSA offered by an RSA product issuer; or

(ii) a superannuation entity; or

(iii) an EPSSS.

10.2 After subsection 1017B (9)

insert

(10) This section does not apply to a change or event in relation to a superannuation product or an RSA product that relates to a payment split in respect of the product.

Part 11 Modifications relating to charges for information requested

11.1 After subsection 1017C (8)

insert

(8A) The obligation of a responsible person under this section to give information on request by a person arises only if the person pays the amount specified by the responsible person as the charge for giving the information.

(8B) The amount of the charge must not exceed the reasonable cost to the responsible person of giving the information (including all reasonably related costs — for example, costs of searching for, obtaining and collating the information).

(8C) A member who acts as a representative for or on behalf of a policy committee is not liable to any charge for information given to the member in that capacity.

(8D) In the case of information to be supplied to a concerned
person under Subdivision 5.9 of Part 7.9 of the Corporations Regulations 2001, a charge may be made only if:

(a) the person to whom the information is to be given has requested the information; and

(b) the person had been given the same information during the period of 12 months immediately preceding the date on which the request is made.

Part 12 Modifications relating to information when member leaves a fund

12.1 After subsection 1017D (3)

insert

(3A) For a superannuation product or an RSA product, the periodic statement in relation to the reporting period mentioned in paragraph 1017D (2) (d) must be given as soon as the issuer becomes aware that that person or another person (the former product holder) has ceased to hold the product, and, in particular, the issuer must make reasonable efforts to give the information within 1 month after becoming aware that the former product holder has ceased to hold the product.

(3B) The issuer of a superannuation product or an RSA product must make all reasonable efforts:

(a) to give the information about the amount of insured death or disability benefits to which the former product holder may have been entitled; and

(b) to give the information about a continuation option (if any) applying to those benefits (as mentioned in either paragraph 7.9.54 (b) or 7.9.65 (b) of the Corporations Regulations 2001) in a reasonable time before the option lapses.

(3C) Subject to subsection (3D), if a person ceases to hold a superannuation product or RSA product:

(a) after the end of the completed reporting period (the completed period); and

(b) before the periodic report is issued for that period;

the information required by this section to be given to or in relation to the person may be given in respect of the period consisting of the completed period and the period mentioned in paragraph 1017D (2) (d) instead of the period in respect of the person’s periodic statement for the period mentioned in paragraph 1017D (2) (d).

(3D) Subsection (3C) does not apply if the period mentioned in paragraph 1017D (2) (d) is greater than:

(a) for a particular superannuation product — 6 months; or

(b) for a particular RSA product — 3 months.

Part 13 Modifications relating to exceptions to exit reporting period provisions

13.1 After subsection 1017D (7)

insert

(8) An RSA provider need not give information under this section to the holder of an RSA product who is transferring the amount of the RSA product to another RSA, a superannuation entity or an EPSSS if:

(a) the RSA holder has received sufficient information under Subdivision 5.8 of Part 7.9 of the Corporations Regulations 2001 to enable the RSA holder to understand the effect of the transfer; and

(b) the RSA provider reasonably believes that the RSA holder does not need the information because the RSA holder has received or will receive from the RSA institution, or the trustee of the superannuation entity or EPSSS to which the amount is being transferred, information relevant to the RSA holder in respect of the exit reporting period, to the same general effect as that required under Subdivisions 5.2 and 5.3 of Part 7.9 of the Corporations Regulations 2001.

(9) A superannuation product provider need not give information under this section to the holder of a superannuation product who is transferring to another superannuation entity or to an EPSSS, or whose benefits are being transferred into an RSA if:

(a) the product holder has received sufficient information under Subdivision 5.8 of Part 7.9 of the Corporations Regulations 2001 to enable the product holder to understand the effect of the transfer; and

(b) the superannuation product provider reasonably believes that the product holder does not need the information because the product holder has received or will receive, from the RSA institution, or from the trustee of the superannuation entity or EPSSS to which the amount is being transferred, information relevant to the product holder in respect of the exit reporting period, to the same general effect as that required under Subdivision 5.2 of Part 7.9 of the Corporations Regulations 2001.

Part 14 Modifications relating to obligation to give information about financial products

14.1 After subsection 1017B (7)

insert

(7A) Subject to subsections (7B) and (7C), this section does not apply if:

(a) the responsible person has an address for a concerned person, and:

(i) is satisfied on reasonable grounds that that address is incorrect; and

(ii) has taken reasonable steps to locate the concerned person but has been unable to do so; or

(b) the responsible person has no address for the concerned person, and:

(i) has been unable to obtain an address for the concerned person; and

(ii) has taken reasonable steps to locate the concerned person, but has been unable to do so.

(7B) If the responsible person has refrained, in reliance on subsection (7A), from giving information to a concerned person, the responsible person must give information to the concerned person if the responsible person later becomes aware of the concerned person’s address or location.

(7C) Subsection (7B) applies only in respect of information that the responsible person becomes liable to give to the concerned person after becoming aware of the concerned person’s address or location.

14.2 After subsection 1017C (8)

insert

(8A) Subject to subsections (8B) and (8C), this section does not apply if:

(a) the responsible person has an address for a concerned person, and:

(i) is satisfied on reasonable grounds that that address is incorrect; and

(ii) has taken reasonable steps to locate the concerned person but has been unable to do so; or

(b) the responsible person has no address for the concerned person, and:

(i) has been unable to obtain an address for the concerned person; and

(ii) has taken reasonable steps to locate the concerned person, but has been unable to do so.

(8B) If the responsible person has refrained, in reliance on subsection (8A), from giving information to a concerned person, the responsible person must give information to the concerned person if the responsible person later becomes aware of the concerned person’s address or location.

(8C) Subsection (8B) applies only in respect of information that the responsible person becomes liable to give to the concerned person after becoming aware of the concerned person’s address or location.

14.3 After subsection 1017D (7)

insert

(8) Subject to subsections (9) and (10), this section does not apply if:

(a) the issuer has an address for a holder, and:

(i) is satisfied on reasonable grounds that that address is incorrect; and

(ii) has taken reasonable steps to locate the holder but has been unable to do so; or

(b) the issuer has no address for the holder, and:

(i) has been unable to obtain an address for the holder; and

(ii) has taken reasonable steps to locate the holder, but has been unable to do so.

(9) If the issuer has refrained, in reliance on subsection (8), from giving information to a holder, the issuer must give information to the holder if the issuer later becomes aware of the holder’s address or location.

(10) Subsection (9) applies only in respect of information that the issuer becomes liable to give to the holder after becoming aware of the holder’s address or location.

14.4 After subsection 1017DA (3)

insert

(3A) Subject to subsections (3B) and (3C), this section does not apply if:

(a) the trustee has an address for a holder or former holder, and:

(i) is satisfied on reasonable grounds that that address is incorrect; and

(ii) has taken reasonable steps to locate the holder or former holder but has been unable to do so; or

(b) the trustee has no address for the holder or former holder, and:

(i) has been unable to obtain an address for the holder or former holder; and

(ii) has taken reasonable steps to locate the holder or former holder, but has been unable to do so.

(3B) If the trustee has refrained, in reliance on subsection (3A), from giving information to a holder or former holder, the trustee must give information to the holder or former holder if the trustee later becomes aware of the holder’s or former holder’s address or location.

(3C) Subsection (3B) applies only in respect of information that the trustee becomes liable to give to the holder or former holder after becoming aware of the holder’s or former holder’s address or location.

Part 15 Modifications for confirmation of transactions

15.1 After subsection 1017F (5A)

insert

(5B) Despite subsection (5), if:

(a) the cost of a transaction (including taxes and charges) is not known at the time at which confirmation of the transaction would be required to be given; and

(b) all of the other information required under subsection (7) in relation to confirmation of the transaction is known at that time;

the confirmation of the transaction is to be provided in accordance with subsection (5C).

(5C) Confirmation is to be provided as follows:

(a) all of the information required, except for the cost of the transaction, is to be provided as soon as practicable in accordance with subsection (5);

(b) the cost of the transaction may be provided in whichever of the following can be done first:

(i) a secondary confirmation notice provided as soon as practicable after the cost is known;

(ii) a standing facility mentioned in paragraph 1017F (5) (b);

(iii) the first periodic report under section 1017D after the cost is known.

Part 16 Modifications relating to reporting periods

16.1 Paragraph 1017D (2) (a)

substitute

(a) each reporting period lasts for:

(i) a period, not exceeding 1 year, fixed by the issuer; or

(ii) a longer period fixed by ASIC on the application of the issuer to which the period relates;

Part 17 Modifications relating to application forms for specified superannuation products

17.1 After subsection 1012B (4)

insert

(4A) A regulated person:

(a) need not give a client a Product Disclosure Statement for a financial product at or before the time when it would otherwise be required to be given; and

(b) must give the client the Product Disclosure Statement as soon as is reasonably practical and in any event within 3 months after the product is issued to the client; and

(c) need not give the client the Product Disclosure Statement at all if the client ceases to be a member of the superannuation fund concerned before the regulated person is required to give the Product Disclosure Statement under paragraph (b).

(4B) Subsections (3), (4) and (4A) apply only in respect of:

(a) in the case of an eligible rollover fund:

(i) persons who become members of the fund by being issued with a superannuation interest under section 243 of the SIS Act; and

(ii) persons who become members of the fund in circumstances mentioned in section 89 of the RSA Act; and

(b) in the case of a public offer superannuation fund that is not a successor fund in relation to the financial product issued to the client:

(i) standard employer‑sponsored members of the fund; and

(ii) persons who become members of the fund in circumstances mentioned in regulation 7.9.06B of the Corporations Regulations 2001.

17.2 After subsection 1012I (2B)

insert

(2C) If a trustee of an EPSSS:

(a) applies, in circumstances mentioned in regulation 7.9.06B of the Corporations Regulations 2001, on behalf of a person for the issue of an interest in a relevant superannuation entity; and

(b) has not previously applied in those circumstances for the issue of an interest in that entity on behalf of any person;

the person (the issuer) who is to issue the interest to the person must, at or before the time when the interest is issued to the person, give the trustee a Product Disclosure Statement in accordance with this Division for the interest.

Part 18 Modification of Part 7.9 of the Act — New Zealand offer documents replace Product Disclosure Statements where an offer relates to interests in a New Zealand managed investment scheme

18.1 After subsection 1012D (9D)

insert

Recommendation, issue or sale situation — New Zealand mutual recognition scheme for securities

(9E) In a recommendation situation, issue situation or sale situation, the regulated person does not have to give the client a Product Disclosure Statement for a financial product if:

(a) the regulated person reasonably believes that there is a recognised offer under Chapter 8 in relation to offer of the financial product; and

(b) the financial product is an interest in a managed investment scheme governed by the laws of New Zealand; and

(c) the regulated person has provided the client the documents and information required to accompany that offer by the Securities Act 1978 (New Zealand) and the Securities Regulations 2009 (New Zealand); and

(d) the regulated person has provided the client any warning statement or details prescribed under section 1200E in relation to the offer.

(9F) For paragraph (9E) (c), section 1015C applies to the providing of documents and information, as if the documents and information were a Statement.

(9G) For paragraph (9E) (d), section 1015C applies to the providing of warning statement or details prescribed under section 1200E, as if the warning statement or details were a Statement.

Schedule 10AA Modifications of the Act in relation to their application in respect of a recognised offer or a proposed offer of securities that may become a recognised offer

(regulation 8.4.02)

Part 1 Modification of Part 6D.2 of the Act — disclosure to investors not required for recognised offer under Chapter 8

1.1 After subsection 707 (3)

insert

(3A) Subsection (3) does not apply to an offer of a body’s securities for sale if the body issued the securities as part of a recognised offer under Chapter 8.

(3B) Subsection (3) does not apply to an offer of a body’s securities for sale if:

(a) the securities were issued by reason of the exercise of options or the conversion of convertible or converting securities; and

(b) the options or other convertible or converting securities were issued as part of a recognised offer under Chapter 8; and

1.2 After subsection 707 (5)

insert

(5A) Subsection (5) does not apply to an offer of a body’s securities for sale if the controller sold the securities as part of a recognised offer under Chapter 8.

Part 2 Modification of Part 7.9 of the Act — disclosure to investors not required for recognised offer under Chapter 8

2.1 After subsection 1012C (6)

insert

(6A) Subsection (6) does not apply to an offer of a financial product for sale if the issuer issued the financial product as part of a recognised offer under Chapter 8.

(6B) Subsection (6) does not apply to an offer of a financial product for sale if:

(a) the financial product was issued by reason of the exercise of an option or the conversion of another convertible or converting security; and

(b) the option or convertible or converting security was issued as part of a recognised offer under Chapter 8; and

2.2 After subsection 1012C (8)

insert

(8A) Subsection (8) does not apply to the offer of a financial product for sale if the controller sold the financial product as part of a recognised offer under Chapter 8.

2.3 After subsection 1012IA (3)

insert

(3A) In determining whether this section requires a provider to give a client a Product Disclosure Statement, Chapter 8 is to be disregarded.

(3B) A provider is not required to give a client a Product Disclosure Statement for a financial product if:

(a) the provider reasonably believes there is a recognised offer under Chapter 8 in relation to the financial product; and

(b) the financial product is an interest in a managed investment scheme governed by the laws of New Zealand; and

(c) the provider has provided the client the documents and information required to accompany that offer by the Securities Act 1978 (New Zealand) and the Securities Regulations 2009 (New Zealand); and

(d) the provider has provided the client any warning statement or details prescribed under section 1200E in relation to the offer.

(3C) For paragraph (3B) (c), section 1015C applies to the providing of documents and information, as if the documents and information were a Statement.

(3D) For paragraph (3B) (d), section 1015C applies to the providing of warning statement or details prescribed under section 1200E, as if the warning statement or details were a Statement.

Note Subsection 1012D (9E) of the Act is a modification of the Act that relates to Chapter 8 of the Act. The modification applies by force of:

(a) regulation 8.4.01 of the Corporations Regulations 2001; and

(b) item 18.1 of Part 18 of Schedule 10A to those Regulations.

Schedule 10B Form and content of Product Disclosure Statement for FHSA product

(regulation 7.9.10E)

Part 1 Form and content of Product Disclosure Statement — general

1 Length and font size for Product Disclosure Statement

(1) The length of a Product Disclosure Statement (including any title page, contents, glossary, index and other information not required by these Regulations) for an FHSA product must not exceed:

(a) if it is printed on A4 pages — 4 pages; or

(b) if it is printed on A5 pages — 8 pages; or

(d) otherwise — if the Statement was formatted to be printed on A4 pages, 4 A4 pages.

(2) The minimum font size for text in the Statement is:

(a) for the name, address, ABN, ACN and AFSL of the person giving the Statement — 8 points; and

(b) for all other text — 9 points.

Note 1 The Product Disclosure Statement must be worded and presented
in a clear, concise and effective manner — see subsection 1013C (3) of the Act.

Note 2 A person required to give a Product Disclosure Statement to a vision‑impaired person must comply with its obligations under the Disability Discrimination Act 1992.

(3) However, if the person who must be given the Statement requests or is entitled to expect that the Statement be given to him or her in a particular format, the Statement given to the person is taken to comply with subitem (1) if it would comply with that subitem in the format that the provider would have given but for the request or expectation.

Example

A vision‑impaired person may request the Statement with a larger font size, and the Statement, when printed with that font size, exceeds 4 A4 pages in length.

2 Sections in a Product Disclosure Statement

(1) The Product Disclosure Statement must contain the following sections, which must be numbered and titled as follows:

1. Who can have a First Home Saver Account

2. How the First Home Saver Account works

3. How the Government helps you save

4. [no prescribed title]

5. What happens if your situation changes

6. Using your savings for your first home

7. The fees and costs [or “The fees” if there are no costs]

8. How to open an account

9. [no prescribed title]

(2) The Product Disclosure Statement may contain other sections (for example, a table of contents, glossary, index, or information about the product issuer).

3 Product Disclosure Statement must be self‑contained

The sections of the Product Disclosure Statement mentioned in subitem 2 (1) must contain, in summary form, all information that a person would reasonably require for the purpose of making a decision whether to acquire the FHSA product.

4 Contents of section 1 (Who can have a First Home Saver Account)

(1) Section 1 of the Product Disclosure Statement must contain the following text:

You should consider opening a First Home Saver Account if you:

 only want to use your savings to buy or build your first home in Australia to live in (‘buy your first home’); and

 are able to save at least $1,000 a year ($20 a week) in 4 separate financial years – they do not need to be in a row.

A financial year is from July 1 to June 30.

To open an account, you must:

 be aged 18 or over and under 65

 have a tax file number

 have never owned a home in Australia that you have lived in; and

 have never opened a First Home Saver Account before.

You can open another First Home Saver Account if you are transferring your savings from one First Home Saver Account to another — see section 8.

If you are saving with others, each person must open their own individual First Home Saver Account. Each of you can then receive the benefits of having a First Home Saver Account.

You cannot open a joint account with someone else.

If you are unsure about your eligibility go to www.ato.gov.au

(2) If section 1 of the Statement contains other text, the other text must come after, and be no more prominent than, the text mentioned in subitem (1).

5 Contents of section 2 (How the First Home Saver Account works)

(1) Section 2 of the Product Disclosure Statement must contain the following text:

How you can use the savings in a First Home Saver Account

You can only withdraw your savings for 4 purposes:

1. to buy your first home

2. as money you can add into your super

3. as money you can withdraw as a lump sum if you are aged 60 or over

4. as money you can pay into a genuine mortgage.

How to save with a First Home Saver Account

 You put money into your [account/fund] the same way as you would [make deposits/make contributions/put money] into a normal [bank account/credit union account/building society account/other account/managed fund]. You can do this at any time, and for as long as you need to save.

 You cannot salary sacrifice into your account.

 You do not need to put money in every year – but your account will only get Government contributions when you do.

 Once the total amount in your account reaches [account balance cap] – including Government contributions and income from investment earnings – you cannot put any more money into your account.

You can keep your account open until:

(i) you buy your first home; or

(ii) you are eligible to pay the money into a genuine mortgage; or

(iii) you turn 65.

When you turn 65 you must close your account and withdraw all of your savings, or move it into super.

(2) If section 2 of the Statement contains other text, the other text must come after, and be no more prominent than, the text mentioned in subitem (1).

6 Contents of section 3 (How the Government helps you save)

(1) Section 3 of the Product Disclosure Statement must contain the following text:

The Government boosts your savings with contributions and a low rate of tax on the income your investment earns.

When you put money into your account the Government puts money in too.

 When you put a dollar into your account, the Government will contribute 17 cents.

 Any money you put in up to a total of [Government FHSA contribution threshold] in a financial year will get this Government contribution – anything over this amount will not.

For example, if you put [Government FHSA contribution threshold] into your account in one financial year, the Government will contribute [Government FHSA contribution for Government FHSA contribution threshold] to your savings.

If you are saving with other people that have their own First Home Saver Accounts, each person will receive Government contributions on the money they put into their account.

 Government contributions are paid directly into your First Home Saver Account after you have lodged your tax return and [name of FHSA provider] has told the Tax Office how much you have put in.

You are not taxed

 on the money you put into your account; or

 on the Government contributions; or

 when you withdraw your savings for your first home.

There is a low rate of tax on [the interest your savings earn/your investment earnings]

 Earnings on First Home Saver Accounts are taxed at 15% but this is paid to the Tax Office by the account provider.

(2) If section 3 of the Statement contains other text, the other text must come after, and be no more prominent than, the text mentioned in subitem (1).

7 Contents of section 4

Section heading

(1) The heading to section 4 of the Statement must be relevant to its contents.

Financial details of product

(2) Section 4 of the Product Disclosure Statement must contain the following information:

(a) if the product is an FHSA life policy or an FHSA trust — the composition of the investments of the product (for example, the percentage of cash, real property and shares in which money in the product will be invested);

(b) the nature of the return that the investments may generate (for example, fixed interest, variable interest, rental income or capital gains);

(c) the current rate of return for the product after tax, or information about how the rate is calculated or where the rate can be found;

(d) if the balance of the product can decrease:

(i) summary information about the reasons for that decrease; and

(ii) a summary description of the likelihood of that decrease (for example, that the product is ‘low risk’).

(3) However, if the product is a multiple investment option FHSA product, the Statement must contain:

(a) the number of investment options; and

(b) the name of each investment option, set out in order of lowest risk to highest risk, and identification of the default investment option; and

(d) either:

(i) the information mentioned in subitem (2) for each other investment option; or

(ii) details of where the information referred to in subparagraph (i) can be found.

(4) The rate of return for the FHSA product must be calculated after applicable fees and taxes.

Worked example of balance changing over time

(5) A Product Disclosure Statement for an FHSA deposit account must also contain:

(a) a worked example of how the balance of the account will change over 4 financial years, with the balance at the end of the period after fees and taxes rounded to the nearest multiple of $1 000, using the following assumptions:

(i) the assumptions mentioned in paragraphs 16 (5) (a), (c), (d) and (f);

(ii) the holder of the product makes weekly contributions to the product, each of $100;

(iii) the product earns a rate of return of 5% per year, after fees and taxes; and

(b) a warning that the rate of return used for the example may not be the same as the rate of return of the product.

(6) A Statement for an FHSA life policy or an FHSA trust may contain a worked example of how the balance of the product will change over 4 financial years, with the balance at the end of the period after fees and taxes rounded to the nearest multiple of $1 000, using the following assumptions:

(a) the assumptions mentioned in paragraphs 16 (5) (a), (c), (d) and (f);

(b) the holder of the product makes weekly contributions to the product, each of $100;

(i) has no earnings; or

(ii) earns a rate of return that is reasonable for the product, after fees and taxes.

(7) A Statement that contains an example mentioned in subitem (6) must also contain:

(a) if the example has no earnings — a statement that the balance of the product may be increased or decreased by its earnings; or

(b) if the example earns a rate of return — a warning that the rate of return used for the example may not be the same as the rate of return of the product.

8 Contents of section 5 (What happens if your situation changes)

Section 5 of the Product Disclosure Statement must contain summary information about the effects on the product or the interests of the holder of the product if the holder:

(a) ceases to meet the FHSA eligibility requirements; or

(b) fails to make a contribution to the product; or

(e) acquires a qualifying interest in a dwelling less than 4 years after acquiring the product; or

(f) meets the minimum release conditions in relation to a dwelling to which paragraph (e) applies; or

(g) ceases to be a resident of Australia.

9 Contents of section 6 (Using your savings for your first home)

(1) Section 6 of the Product Disclosure Statement must contain summary information about:

(a) what actions the holder of the product must take when the holder:

(i) decides to acquire a qualifying interest in a dwelling using the money in the product; or

(ii) meets the minimum release conditions in relation to a dwelling to which subparagraph (i) applies; and

(b) what happens when the holder takes the actions mentioned in paragraph (a).

(2) Section 6 must also contain a statement that the holder of
the product must live in the dwelling for at least 6 months
that commences within 12 months after its acquisition or completion of its construction.

10 Contents of section 7 (The fees and costs)

(1) Section 7 of the Product Disclosure Statement must include:

(a) information on the fees and costs that an FHSA holder may be charged on the FHSA product; and

(b) an example of the overall cost of the FHSA product; and

as set out in Part 2.

(2) However, if the product is a multiple investment option FHSA product, the Statement must contain:

(a) the information required by subitem (1) for the default investment option; and

(b) if another investment option is detailed in the Statement — the information required by subitem (1) for that investment option; and

(i) the information required by subitem (1) for each other investment option; or

(ii) details of where the information referred to in subparagraph (i) can be found.

(3) Also:

(a) if a fee or cost mentioned in Part 2 is not charged, the Statement does not need to include information relating to the fee or cost; and

(b) if no fees or no costs are charged at all, the Statement must state that.

11 Contents of section 8 (How to open an account)

Section 8 of the Product Disclosure Statement must contain:

(a) information about how to acquire the product; and

(b) information about the effect and length of the cooling‑off period; and

12 Contents of section 9

(1) Section 9 of the Product Disclosure Statement must contain the following information:

(a) the name and address of the FHSA provider;

(b) the address of an Internet page, and a phone number, operated by or for the provider from which a person can obtain further information about the product;

(2) Section 9 must also contain the following text:

First Home Saver Account enquiries

Information about how First Home Saver Accounts work, eligibility, fees and taxes, and links to savings calculators and other useful online tools.

visit www.ato.gov.au

Part 2 Information on fees and costs

13 Definitions

(1) In this Part:

ADI (short for authorised deposit‑taking institution) means a body corporate that is an ADI for the purposes of the Banking Act 1959.

small unusual cost means a fee or cost charged on an FHSA product that:

(a) does not relate to the ordinary acquisition, operation or closure of the product; and

(b) is less than $10.

Examples for paragraph (a)

A fee for a duplicate statement, or a dishonoured cheque fee.

(2) If a term used in this Part is defined in Part 1 of Schedule 10, it has the same meaning in this Part as it has in Schedule 10.

14 Presentation of information on fees and costs

Terminology

(1) If this Part requires that information about a fee or cost be included in a Product Disclosure Statement, the Statement must use the term for that fee or cost that is used in this Part or Part 1 of Schedule 10.

Example

A fee which is an establishment fee as defined in item 101 of Schedule 10 must be referred to in a Product Disclosure Statement as an “establishment fee”.

(2) However, if the Statement is for an FHSA deposit account offered or issued by an ADI, the Statement may use the term for a fee or cost of that kind that is ordinarily used by the ADI for that kind of account.

Example

A bank may call an establishment fee for its savings accounts an ‘account opening fee’.

Manner in which fees and costs are to be expressed

(3) If this Part requires that an amount of a fee or a cost be included in a Product Disclosure Statement, the amount must be expressed as:

(a) a dollar amount; or

(b) if the amount of the fee or cost is not fixed — a range of dollar amounts; or

(4) However, if ASIC is satisfied that, for a compelling reason, it would be unreasonable for a fee or cost to be expressed as required by subitem (3), ASIC may determine, in writing, the manner in which the fee or cost is to be expressed.

Negotiable fees and costs

(5) If a fee or cost is negotiable, the Statement must clearly indicate that fact, and detail where information may be found about when and how the fee or cost may be negotiated.

15 Information on fees and costs

(1) For each fee or cost charged on an FHSA product, other than a small unusual cost, the Product Disclosure Statement must include the information set out in subregulation (2).

(2) The fees and costs must be presented in the following order, and include the following information:

(a) establishment fee — the amount of the fee;

(b) contribution fee — the amount of the fee;

(i) the services or functions to which the costs relate; and

(ii) the costs; and

(iii) the amount of the costs; and

(iv) if the amount of the costs is not fixed — how the amount is calculated; and

(v) if there is a minimum or maximum amount of the costs in a given period of time — the amount and the period of time;

(d) termination fee — the amount of the fee;

(e) buy‑sell spread:

(i) a summary description of what the spread relates to; and

(ii) when the spread is charged; and

(iii) the amount of the spread and how it is calculated;

(f) service fees:

(i) a summary description of the services the fees relate to; and

(ii) when the fees are charged; and

(iii) the amount of the fees; and

(iv) if the amount of the fees is not fixed — how the amount is calculated; and

(v) if there is a minimum or maximum amount of the fees in a given period of time — the amount and the period of time.

Note A fee or cost which is not charged does not need to be included in the Statement — see subitem 10 (3).

(3) The information mentioned in subitem (2) may be presented in narrative form, in a table, or in any other form that enables it to be easily understood and compared with similar information about like products.

(4) The Statement must also detail where:

(a) further information about fees and costs; and

(b) information about small unusual costs;

may be obtained.

16 Example of overall cost

(1) The Product Disclosure Statement must include an example of the fees and costs that may be charged on the FHSA product over the life of the product (the product’s overall cost).

(2) For subitem (1), the overall cost of the FHSA product is the sum of the following fees and costs applicable to the product, when those fees and costs are worked out over the life of the product using the FHSA assumptions:

(a) establishment fee;

(b) contribution fees;

(d) termination fee;

(e) buy‑sell spread;

(f) service fees;

(g) indirect costs.

(3) For paragraph (2) (g), the indirect costs for an FHSA product are the sum of the annual indirect costs for each of the 4 financial years that the FHSA product exists under the FHSA assumptions.

(4) For subitem (3), the annual indirect costs for a year are worked out as follows:

where:

ICR, for a fund, means the ratio of:

(a) the sum of:

(i) the fund’s management costs that are not deducted directly from an account holder’s account; and

(ii) any other costs listed in paragraphs (2) (a) to (f) that are not deducted directly from the account holder’s account; to

(b) the fund’s total average net assets.

average balance is the average balance, when the FHSA assumptions are applied, of the FHSA product during the year.

(5) For this item, the FHSA assumptions are the following assumptions:

(a) the product commences on the first day of a financial year, with a balance of $100;

(b) the holder of the product makes equal weekly contributions to the product, amounting to $5 000 per financial year;

(i) on 30 November after the end of each financial year, other than the financial year in which the product is closed; and

(ii) at the start of the day on which the product is closed;

(d) no money is withdrawn from the product (other than for payment of fees and taxes) until it is closed;

(e) the product earns a rate of return of 5% per year after taxes, but before fees and costs;

(f) the product is closed, and the balance is withdrawn electronically by the holder for the acquisition of a qualifying interest in a dwelling, at the end of the last day of the financial year that is 3 financial years after the product commenced.

(6) The example of overall cost must be in the following format, with all fees and cost amounts rounded to the nearest multiple of $10:

Example of the fees and costs

If you put $20,000 into your account over 4 years, our fees and other costs will total about [insert overall cost as a dollar amount]. The fees and costs in this example are made up of:

 establishment fee: $[insert establishment fee amount in dollars]

 contribution fees: $[insert contribution fees amount in dollars]

 management costs: $[insert management costs amount in dollars]

 termination fee: $[insert termination fee amount in dollars]

 other fees: $[insert sum of other fees and costs applicable to the product in dollars]

[For FHSA life policies and FHSA trusts, include the following:]

This is equal to [insert the equivalent percentage of the product’s average annual balance that would generate that dollar amount, rounded to one decimal place (“overall cost ratio”)] of the account balance per year.

[For multiple investment option FHSA products, include the following:]

These fees are based on [name of investment option to which assumptions have been applied].

17 Consumer advisory

The Product Disclosure Statement for an FHSA life policy or an FHSA trust must include the following statement:

Compare the fees and costs

Use the above example of [overall cost ratio] in fees and costs to make a broad comparison with the fees and costs of other [insert general description, e.g. bank account, life insurance policy, investment‑linked] First Home Saver Accounts.

Schedule 10BA [see Note 3]

Schedule 10C Form and content of Product Disclosure Statement — margin loan

(regulation 7.9.11D)

1 Length and font size for Product Disclosure Statement for margin loan

(1) The length of a Product Disclosure Statement for a margin loan (not including any title page, table of contents or matter in writing that is applied, adopted or incorporated by the Statement) must not exceed:

(a) if it is printed on A4 pages — 4 pages; or

(b) if it is printed on A5 pages — 8 pages; or

(d) otherwise — if it is formatted to be printed on A4 pages, 4 A4 pages.

(2) The minimum font size for text in the Statement is:

(a) for the name, address, ABN (if applicable), ACN (if applicable) and AFSL (if applicable) of the person giving the Statement — 8 points; and

(b) for all other text — 9 points.

Note 1 The Product Disclosure Statement must be worded and presented in a clear, concise and effective manner — see subsection 1013C (3) of the Act.

Note 2 A person required to a give a Product Disclosure Statement to a vision-impaired person must comply with its obligations under the Disability Discrimination Act 1992.

2 Minimum content of Product Disclosure Statement for margin loan

(1) The Product Disclosure Statement must include the following sections, which must be numbered and titled as follows:

1. About [name of provider of the margin loan] and [name of margin loan product]

2. Benefits of [name of margin loan product]

3. How [name of margin loan product] works

4. What is a margin call?

5. The risk of losing money

6. The costs

7. How to apply.

(2) The Product Disclosure Statement must include:

(a) a table of contents that sets out the titles mentioned in subclause (1); and

(b) the telephone number of the provider of the margin loan to enable a borrower for the margin loan to request a copy of the following under regulation 7.9.11G:

(i) a copy of the Statement; and

(ii) a copy of a matter in writing that is applied, adopted or incorporated by the Statement.

(3) The Product Disclosure Statement must:

(a) advise a person reading the Statement that:

(i) it is a summary of significant information and contains a number of references to important information (each of which forms part of the Statement); and

(ii) the person should consider that information before making a decision about the product; and

(iii) the information provided in the Statement is general information only and does not take account of the person’s personal financial situation or needs; and

(iv) the person should obtain financial advice tailored to the person’s personal circumstances; and

(b) display the advice:

(i) at or near the beginning of the document; and

(ii) in a prominent position and style.

(4) The Product Disclosure Statement:

(a) may include additional sections after sections 1 to 7; and

(b) may include other information;

to an extent that does not have the effect of contravening subclause 1 (1).

(5) The Product Disclosure Statement does not need to indicate that a particular requirement is not applicable to the margin loan.

Note The Act, as modified in accordance with Subdivision 4.2A of Division 4 of Part 7.9, requires information to be included in the Product Disclosure Statement only to the extent to which the requirement is applicable to the margin loan.

3 Contents of section 1 (About [name of provider of the margin loan] and [name of margin loan product])

Section 1 of the Product Disclosure Statement must include:

(a) a short description of the margin loan provider and its business; and

(b) a short summary of what margin lending is; and

(c) a statement setting out the possible consequences of borrowing money to invest, including the effect of magnifying both gains and losses; and

(d) a statement that the borrower for a margin loan should regularly monitor the borrower’s portfolio so that:

(i) the borrower can be aware of changes (if any) to the terms of the margin loan; and

(ii) the borrower can take timely action to prevent potential losses in relation to the borrower’s portfolio; and

(e) a statement that the borrower for a margin loan may need, at short notice, to pay an additional amount into the margin loan or sell some of the investments for which the margin loan is made; and

(f) a statement that the provider of a margin loan has the right in certain circumstances to sell all, or part, of the borrower’s portfolio and may not be required under the terms of the margin loan to provide notice to the borrower of its intention to sell; and

(g) a statement that if the value of the portfolio for a margin loan does not cover the cost of repayments for the margin loan:

(i) the borrower for the margin loan may need to access other funds to repay the margin loan; or

(ii) the provider of the margin loan may sell assets provided as security for the margin loan, for example, the borrower’s residential property; and

(h) a statement that the law requires the provider of a margin loan to:

(i) assess whether the margin loan is unsuitable for the potential borrower for the margin loan; and

(ii) if the potential borrower for the margin loan requests a copy of the assessment — to provide a copy of the assessment to the potential borrower for the margin loan.

Note The provider of a margin loan is not required to give the borrower or potential borrower for the margin loan a copy of the assessment if the margin loan is not issued.

4 Contents of section 2 (Benefits of [name of margin loan product])

(1) Section 2 of the Product Disclosure Statement for a margin loan must include a description of the key benefits available to the borrower or potential borrower for the margin loan.

(2) Section 2 of the Statement may include a description about other benefits available to a borrower or potential borrower for the margin loan other than the benefits mentioned in subclause (1).

(3) Section 2 of the Statement may provide for the description mentioned in subclause (2) by applying, adopting or incorporating a matter in writing.

5 Contents of section 3 (How [name of margin loan product] works)

(1) Section 3 of the Product Disclosure Statement for a margin loan must include:

(a) an explanation of how margin lending works including information about the following:

(i) the maximum loan amount for the margin loan;

(ii) the loan-to-value ratios for the margin loan; and

(b) at least 1 example that illustrates the matters mentioned in subparagraphs (a) (i) and (ii); and

(c) a description of the financial products that the borrower or potential borrower for the margin loan can purchase with the margin loan (including the Approved Securities List for the provider or potential provider of the margin loan); and

(d) an explanation of who owns the investments purchased with the margin loan; and

(e) a statement that:

(i) details of the rights and obligations of the borrower for a margin loan are set out in the terms of the agreement for the margin loan; and

(ii) recommends that a potential borrower for a margin loan read the loan agreement; and

(iii) explains how a potential borrower can obtain a copy of the loan agreement; and

(f) an explanation of any other features of the margin loan that:

(i) are not covered by the matters mentioned in paragraphs (a), (c) and (d); and

(ii) are sufficiently important to be material to a reasonable person’s decision to take out the margin loan; and

(g) a reference to:

(i) the calculator provided on a website operated by or on behalf of the Commonwealth and an explanation of the assistance the calculator can provide; or

(ii) if the provider or potential provider of the margin loan provides a calculator to borrowers or potential borrowers for the margin loan — that calculator and an explanation of the assistance the calculator can provide.

(2) Section 3 of the Statement may provide for the following matters by applying, adopting or incorporating the matter in writing:

(a) the Approved Securities List;

(b) the explanation mentioned in paragraph (1) (f).

6 Contents of section 4 (What is a margin call?)

Section 4 of the Product Disclosure Statement for a margin loan must include:

(a) if the terms of the margin loan include a margin call:

(i) an explanation of what a margin call is; and

(ii) an explanation of when there will be a margin call in response to changes in the market; and

(iii) an explanation of when there will be a margin call at the discretion of the provider of the margin loan; and

(iv) at least 1 example of how a margin call works, including:

(A) the impact of breaching the loan-to-value ratio (LVR) for the margin loan; and

(B) how to adjust the LVR back to the required level for the margin loan; and

(v) a description of how a margin call can be dealt with by the borrower for the margin loan; and

(vi) a statement that if there is a margin call, the provider of the margin loan will notify the borrower for the margin loan, or the borrower’s financial advisor, that the margin call has occurred; and

(vii) a statement that the borrower for the margin loan must be contactable at all times in case of a margin call; and

(b) if the terms of the margin loan do not include a margin call, a statement to that effect.

7 Contents of section 5 (The risk of losing money)

(1) Section 5 of the Product Disclosure Statement for a margin loan must include a description of the risks associated with margin lending to a borrower for the margin loan, including a description of any of the following risks, if relevant:

(a) the risk that the value of the borrower’s investment may fall and the possible consequences to the borrower if this occurs, in particular the risk of a margin call occurring;

(b) the risk that the provider of the margin loan may change the loan-to-value ratio of an investment at any time and the consequences to the borrower of the change, in particular, the risk of a margin call occurring;

(c) the risk that the provider of the margin loan may remove an investment from the Approved Securities List and the consequences for the borrower if this occurs, in particular, the risk of a margin call occurring;

(d) the risk that the interest rate for the margin loan may rise and the consequences for the borrower if this occurs, in particular, the possibility that interest payments owed by the borrower may exceed the returns available from the borrower’s portfolio;

(e) the risk of the loss of property of the borrower if the property has been mortgaged as security for, or in connection with, the margin loan;

(f) the risk of a default event under the loan agreement occurring and the potential consequences for the borrower if a default event does occur;

(g) the risk that the taxation laws may change and that this may have a negative effect on the tax position for the borrower for the margin loan;

(h) any other significant risks that a reasonable person would consider to be relevantly associated with the margin loan.

(2) Section 5 of the Statement must include a hyperlink to the page on a website operated by or on behalf of the Commonwealth that provides information about margin loans.

(3) Section 5 of the Statement may include information about risks associated with margin lending other than the risks mentioned in subclause (1).

(4) Section 5 of the Statement may provide for the information mentioned in subclause (3) by applying, adopting or incorporating a matter in writing.

8 Contents of section 6 (The costs)

(1) Section 6 of the Product Disclosure Statement for a margin loan must include the following:

(a) a description of the interest rate for the margin loan, including how the interest rate is calculated;

(b) a statement about whether a default interest rate will be charged for the margin loan;

(d) a statement about whether a fee or cost to be charged by the provider for the loan can be unilaterally changed by the provider under the loan agreement;

(e) a list of matters for which the provider of the margin loan will charge a minor fee for the margin loan;

(f) a statement about whether a commission or fee is payable to a financial advisor or other third party for the margin loan and, if a commission or fee is payable:

(i) the circumstances in which the commission or fee will be payable; and

(ii) how the borrower for the margin loan can obtain more detailed information about the commission or fee.

(2) Section 6 of the Statement must include:

(a) a statement of the interest rate for the margin loan; and

(b) details of any minor fee the provider of the margin loan will charge for the margin loan.

(3) Section 6 of the Statement may provide for the statement mentioned in paragraph (2) (a) or the details mentioned in paragraph (2) (b) by applying, adopting or incorporating a matter in writing

9 Contents of section 7 (How to apply)

(1) Section 7 of the Product Disclosure Statement for a margin loan must include:

(a) information about how to apply for the margin loan; and

(b) a short summary about the dispute resolution system the provider of the margin loan has for dealing with disputes or complaints about the loan, including:

(i) how a borrower for the loan may make a complaint about the loan; and

(ii) contact details for making a complaint about the loan.

(2) The margin loan provider:

(a) may provide more detailed information about cooling-off periods, complaints and dispute resolution; and

(b) may provide that information by applying, adopting or incorporating a matter in writing.

Schedule 10D Form and content of Product Disclosure Statement — superannuation product to which Subdivision 4.2B of Division 4 of Part 7.9 applies

(regulation 7.9.11O)

1 Length and font size for Product Disclosure Statement for superannuation product

(1) The length of a Product Disclosure Statement for a superannuation product to which Subdivision 4.2B of Division 4 of Part 7.9 applies (not including any matter in writing that is applied, adopted or incorporated by the Statement) must not exceed:

(a) if it is printed on A4 pages — 8 pages; or

(b) if it is printed on A5 pages — 16 pages; or

(d) otherwise — if it is formatted to be printed on A4 pages, 8 A4 pages.

(2) The minimum font size for text in the Statement is:

(a) for the name, address, ABN (if applicable), ACN (if applicable) and AFSL (if applicable) of the person giving the Statement — 8 points; and

(b) for all other text — 9 points.

Note 1 The Product Disclosure Statement must be worded and presented in a clear, concise and effective manner — see subsection 1013C (3) of the Act.

Note 2 A person required to a give a Product Disclosure Statement to a vision-impaired person must comply with its obligations under the Disability Discrimination Act 1992.

2 Minimum content of Product Disclosure Statement for superannuation product

(1) Subject to subclause 10 (1), the Product Disclosure Statement must include sections which must be numbered and titled as follows:

1. About [name of superannuation product]

2. How super works

3. Benefits of investing with [name of superannuation product]

4. Risks of super

5. How we invest your money

6. Fees and costs

7. How super is taxed

8. Insurance in your super

9. How to open an account.

(2) However, if the superannuation product does not offer insurance cover:

(a) section 9 may be presented as section 8; and

(b) if section 9 is presented as section 8 — a reference in clause 11 to section 9 is taken to be a reference to section 8.

(3) The Product Disclosure Statement must include:

(a) a table of contents that sets out the titles mentioned in subclause (1); and

(b) the telephone number of the superannuation trustee to enable a person who acquires the superannuation product to request a copy of the following under regulation 7.9.11R:

(i) a copy of the Statement; and

(ii) a copy of a matter in writing that is applied, adopted or incorporated by the Statement.

(4) The Product Disclosure Statement must:

(a) advise a person reading the Statement that:

(i) it is a summary of significant information and contains a number of references to important information (each of which forms part of the Statement); and

(ii) the person should consider that information before making a decision about the product; and

(iii) the information provided in the Statement is general information only and does not take account of the person’s personal financial situation or needs; and

(iv) the person should obtain financial advice tailored to the person’s personal circumstances; and

(b) display the advice:

(i) at or near the beginning of the document; and

(ii) in a prominent position and style.

(5) The Product Disclosure Statement:

(a) may include additional sections after sections 1 to 9; and

(b) may include other information;

to an extent that does not have the effect of contravening subclause 1 (1).

(6) The Product Disclosure Statement does not need to indicate that a particular requirement is not applicable to the superannuation product.

Note The Act, as modified in accordance with Subdivision 4.2B of Division 4 of Part 7.9, requires information to be included in the Product Disclosure Statement only to the extent to which the requirement is applicable to the superannuation product.

3 Contents of section 1 (About [name of superannuation product])

Section 1 of the Product Disclosure Statement must describe,
in the form of a summary, the superannuation fund and its products.

4 Contents of section 2 (How super works)

(1) Section 2 of the Product Disclosure Statement must include statements to the effect that:

(a) superannuation is a means of saving for retirement which is, in part, compulsory; and

(b) there are different types of contributions available to a person (for example, employer contributions, voluntary contributions, government co-contributions); and

(d) tax savings are provided by the Government; and

(e) most people have the right to choose into which fund the employer should direct their superannuation guarantee contributions.

(2) The superannuation trustee may provide more detailed information on the matters set out in subclause (1) by:

(a) applying, adopting or incorporating a matter in writing; or

(b) providing a reference to a website, operated by or on behalf of the Commonwealth, that contains the information.

5 Contents of section 3 (Benefits of investing with [name of superannuation product])

(1) Section 3 of the Product Disclosure Statement must describe the superannuation product covered by the Statement, including a summary of its significant features and the benefits it provides.

(2) The superannuation trustee may provide additional information about significant benefits of superannuation or other significant features of the superannuation product by applying, adopting or incorporating a matter in writing.

6 Contents of section 4 (Risks of super)

(1) Section 4 of the Product Disclosure Statement must include statements to the following effect:

(a) all investments carry risk;

(b) different strategies may carry different levels of risk, depending on the assets that make up the strategy;

(2) Section 4 must describe, in the form of a summary, the significant risks of the particular superannuation product.

(3) Section 4 must describe the significant risks of superannuation (to the extent only that the description required by subitem (2) has not already described the risk) by including statements to the following effect:

(a) the value of investments will vary;

(b) the level of returns will vary, and future returns may differ from past returns;

(d) superannuation laws may change in the future;

(e) the amount of a person’s future superannuation savings (including contributions and returns) may not be enough to provide adequately for the person’s retirement;

(f) the level of risk for each person will vary depending on a range of factors, including:

(i) age; and

(ii) investment time frames; and

(iii) where other parts of the person’s wealth are invested; and

(iv) the person’s risk tolerance.

(4) The superannuation trustee may provide additional information about significant risks of superannuation by applying, adopting or incorporating a matter in writing.

7 Contents of section 5 (How we invest your money)

(1) Section 5 of the Product Disclosure Statement must describe, in the form of a summary:

(a) the investment options being offered; and

(b) what happens if the person does not make a choice of where to invest.

(2) Section 5 must state, in the form of a warning, that the person must consider:

(a) the likely investment return; and

(b) the risk; and

when choosing an option in which to invest.

(3) For at least 1 investment option, section 5 must:

(a) state the name of the option and give a short description of it, including the type of investors for whom it is intended to be suitable; and

(b) list the asset classes in which the option invests, and set out, in the form of a range or otherwise, the strategic asset allocation of the asset classes; and

(d) state the minimum suggested time frame for holding the investment; and

(e) describe, in the form of a summary, the risk level of the option.

(4) If the superannuation product has a default option, section 5 must give the information mentioned in subclause (3) for the default option, whether or not section 5 gives that information for any other investment option.

(5) If the superannuation product offers more than 1 default investment option, section 5 must give the information mentioned in subclause (3) for the default investment option under which the superannuation trustee has the most funds invested, whether or not section 5 gives that information for any other investment option

(6) If the superannuation product does not have a default option, and has a balanced investment option (within the meaning given by item 101 of Schedule 10), section 5 must give the information mentioned in subclause (3) for the balanced investment option, whether or not section 5 gives that information for any other investment option.

(7) If the superannuation product does not have a default option, and does not have a balanced investment option, section 5 must give the information mentioned in subclause (3) for the investment option under which the superannuation trustee has the most funds invested, whether or not section 5 gives that information for any other investment option.

(8) Section 5:

(a) must make provision for each investment option which is not presented in section 5 in accordance with subclause (3), (4), (5), (6) or (7); and

(b) may make provision for the option by applying, adopting or incorporating matter in a document that:

(i) includes the information mentioned in subclause (3); and

(ii) presents it in the way mentioned in the subclause.

(9) The superannuation trustee:

(a) must provide information about how a person may switch the person’s investments; and

(b) must provide information about:

(i) whether the superannuation product’s investment options may be changed; and

(ii) and, if so, how the options may be changed; and

(c) must describe, in the form of a summary, the extent to which labour standards or environmental, social or ethical considerations are taken into account in the selection, retention or realisation of investments relating to the superannuation product; and

(d) may provide the information in paragraphs (a) to (c), and any additional information about investment options, by applying, adopting or incorporating a matter in writing.

8 Contents of section 6 (Fees and costs)

(1) For each investment option of the superannuation product that is presented in section 5 in detail in accordance with subclause 7 (3), section 6 of the Product Disclosure Statement must state:

(a) the cost of acquiring the option; and

(b) the fees and costs that are charged in relation to the option.

Note The statement will be made using the template set out in subclause (3).

(2) Before setting out any other substantive material, section 6 must:

(a) set out the Consumer Advisory Warning in clause 221 of Schedule 10; and

(b) give a concise example in the form set out in the Consumer Advisory Warning in clause 221 of Schedule 10.

(3) Section 6 must set out the fees and costs for each investment option that is presented in section 5 in detail in accordance with subclause 7 (3), using the following template.

TYPE OF FEE OR COST	AMOUNT
Fees when your money moves in or out of the fund
Establishment fee
Contribution fee
Withdrawal fee
Termination fee
Management costs
The fees and costs for managing your investment

[If there are other service fees, such as advisor service fees or special request fees, include a cross reference to the document that contains the information mentioned in paragraph (10) (a).].

(4) The template is to be completed in accordance with Division 3 of Schedule 10 (including definitions applicable to that Division), except that:

(a) clauses 203, 205, 206 and 207 and subclause 208 (2) do not apply; and

(b) the reference in clause 204 to clause 205 and clause 206 does not apply; and

“(for example, by using an asterisk with a footnote stating ‘The amount of this fee can be negotiated’)”.

(5) Section 6 must set out the information about fee changes set out in paragraph 209 (k) of Schedule 10.

(6) Section 6 must:

(a) state that the information in the template can be used to compare costs between different superannuation products; and

(b) state concisely, and in general terms, that fees and costs can be paid directly from the person’s account or deducted from investment returns.

(7) Section 6 must give a worked example as follows:

(a) if the superannuation product offers more than 1 default investment option, section 6 must give a worked example for the default investment option under which the superannuation trustee has the most funds invested;

(b) if the superannuation product does not have a default option, and has a balanced investment option (within the meaning given by item 101 of Schedule 10), section 6 must give a worked example for the balanced investment option;

(c) if the superannuation product does not have a default option, and does not have a balanced investment option, section 6 must give a worked example for the investment option under which the superannuation trustee has the most funds invested;

in accordance with Divisions 5 and 6 of Schedule 10 (including definitions applicable to those Divisions), except that clauses 212 and 220 do not apply.

(8) Section 6:

(a) must refer to the calculator provided by ASIC on its FIDO website or a similar website operated by or on behalf of ASIC; and

(b) may also refer to the calculator (if any) provided by the superannuation trustee on its website; and

(c) must state that each calculator referred to can be used to calculate the effect of fees and costs on account balances.

(9) If additional fees may be payable to a financial advisor, section 6 must:

(a) state, in the form of a warning, that additional fees may be paid to a financial advisor if a financial advisor is consulted; and

(b) refer to the Statement of Advice in which details of the fees are set out; and

(i) state that fees may be paid to the employer entity’s financial adviser; and

(ii) explain how the fees are determined.

(10) The superannuation trustee:

(a) must provide the fees and costs of each of the investment options in accordance with Schedule 10, and may do so by applying, adopting or incorporating a matter in writing; and

(b) may provide more detailed information about fees and costs by applying, adopting or incorporating a matter in writing.

9 Contents of section 7 (How super is taxed)

(1) Section 7 of the Product Disclosure Statement must describe, in the form of a summary, the significant tax information relating to superannuation products, including:

(a) how tax amounts due are paid; and

(b) the main taxes that are payable in relation to contributions (if contributions are permitted), fund earnings and withdrawals.

(2) Section 7 must:

(a) state, in the form of a warning, that the person should provide the person’s tax file number as part of acquiring the superannuation product; and

(b) explain, in the form of a summary, the consequences if the person does not provide the person’s tax file number; and

(c) if contributions are permitted — set out a warning that there will be taxation consequences if the contribution caps applicable to superannuation are exceeded.

(3) The superannuation trustee may provide additional information about taxation matters relating to superannuation products by applying, adopting or incorporating a matter in writing.

10 Contents of section 8 (Insurance in your super)

(1) If the superannuation product does not offer insurance cover, the Product Disclosure Statement is not required to include any of the information in this clause.

(2) If the superannuation product offers insurance cover, section 8 must:

(a) describe, in the form of a summary, the main types of insurance cover that a person can acquire; and

(b) describe, in the form of a summary, how to apply for insurance cover; and

(d) describe, in the form of a summary, who is responsible for paying the insurance costs and how they are calculated.

(3) If the superannuation product offers insurance cover by default, section 8 must:

(a) describe, in the form of a summary, the level and type of cover; and

(b) state:

(i) the actual cost of the cover in dollars, or the range of costs that would be payable depending on a person’s circumstances; and

(ii) who is responsible for paying the costs; and

(i) decline to acquire the cover; or

(ii) cancel the cover; and

(d) state how a person can decline to acquire the cover or cancel the cover; and

(e) state whether a person can change the person’s insurance cover; and

(f) state how a person can change the person’s insurance cover; and

(g) state, in the form of a warning, that, unless a person declines to acquire the default insurance cover or cancels it, the cost of the cover will be deducted from the person’s account or from the person’s contributions (as applicable); and

(h) include information about eligibility for, and the cancellation of, the insurance cover; and

(i) include information about any conditions and exclusions that are applicable to the insurance cover.

(4) If the superannuation product does not offer insurance cover by default but offers insurance cover as an option, section 8 must include the following information:

(a) the level and type of insurance cover available;

(b) the actual cost of the cover in dollars, or the range of costs that would be payable depending on a person’s circumstances;

(d) any conditions and exclusions that are applicable to the insurance cover;

(e) any other significant matter in relation to insurance cover.

Examples for paragraph (e)

1 Information about how a person can apply for the insurance cover.

2 Information about how a person can subsequently change or cancel the insurance cover.

(5) The superannuation trustee:

(a) may provide the information in paragraphs (3) (h) and (i) and subclause (4); and

(b) may provide additional information about insurance cover;

by applying, adopting or incorporating a matter in writing.

(6) If information about:

(a) eligibility for, or the cancellation of, the insurance cover; or

(b) any conditions and exclusions that are applicable to the insurance cover;

is provided for in accordance with subclause (5), section 8 must include a warning to the effect that the matter may affect a person’s entitlement to insurance cover and that the information should be read before deciding whether the insurance is appropriate.

(7) If information about:

(a) the level and type of optional insurance cover available; or

(b) the actual cost of the optional insurance cover in dollars, or the range of costs that would be payable depending on a person’s circumstances; or

is provided for in accordance with subclause (5), section 8 must include a warning to the effect that the information should be read before deciding whether the insurance is appropriate.

11 Contents of section 9 (How to open an account)

(1) Section 9 of the Product Disclosure Statement must, if applicable:

(a) describe, in the form of a summary, how to open an account with the superannuation provider; and

(b) explain the cooling-off period that applies to the superannuation product; and

Note The effect of subclause 10 (1) is that the Product Disclosure Statement is not required to include section 8 (as set out in clause 10) if the superannuation product does not offer insurance cover. In that case, subclause 2 (2) allows the Statement to present the information in this clause as “section 8” or “section 9”.

(2) The superannuation trustee:

(a) may provide more detailed information about cooling-off periods, complaints and dispute resolution; and

(b) may provide that information by applying, adopting or incorporating a matter in writing.

Schedule 10E Form and content of Product Disclosure Statement — simple managed investment scheme

(regulation 7.9.11W)

1 Length and font size for Product Disclosure Statement for simple managed investment scheme

(1) The length of a Product Disclosure Statement for a simple managed investment scheme to which Subdivision 4.2C of Division 4 of Part 7.9 applies (not including any matter in writing that is applied, adopted or incorporated by the Statement) must not exceed:

(a) if it is printed on A4 pages — 8 pages; or

(b) if it is printed on A5 pages — 16 pages; or

(d) otherwise — if it is formatted to be printed on A4 pages, 8 A4 pages.

(2) The minimum font size for text in the Statement is:

(a) for the name, address, ABN (if applicable), ACN (if applicable), ARSN and AFSL (if applicable) of the person giving the Statement — 8 points; and

(b) for all other text — 9 points.

Note 1 The Product Disclosure Statement must be worded and presented in a clear, concise and effective manner — see subsection 1013C (3) of the Act.

Note 2 A person required to a give a Product Disclosure Statement to a vision-impaired person must comply with its obligations under the Disability Discrimination Act 1992.

2 Minimum content of Product Disclosure Statement for simple managed investment scheme

(1) The Product Disclosure Statement must include sections which must be numbered and titled as follows:

1. About [name of responsible entity]

2. How [name of simple managed investment scheme] works

3. Benefits of investing in [name of simple managed investment scheme]

4. Risks of managed investment schemes

5. How we invest your money

6. Fees and costs

7. How managed investment schemes are taxed

8. How to apply.

(2) The Statement must include:

(a) a table of contents that sets out the titles mentioned in subclause (1); and

(b) the telephone number of the responsible entity for the simple managed investment scheme to enable a person who invests in the simple managed investment scheme to request a copy of the following under regulation 7.9.11Z:

(i) a copy of the Statement; and

(ii) a copy of a matter in writing that is applied, adopted or incorporated by the Statement.

(3) The Statement must:

(a) advise a person reading the Statement that:

(i) it is a summary of significant information and contains a number of references to important information (each of which forms part of the Statement); and

(ii) persons should consider that information before making a decision about the simple managed investment scheme; and

(iii) the information provided in the Statement is general information only and does not take account of the person’s personal financial situation or needs; and

(iv) the person should obtain financial advice tailored to the person’s personal circumstances; and

(b) display the advice:

(i) at or near the beginning of the document; and

(ii) in a prominent position and style.

(4) The Statement:

(a) may include additional sections after sections 1 to 8; and

(b) may include other information;

to an extent that does not have the effect of contravening subclause 1 (1).

(5) The Product Disclosure Statement does not need to indicate that a particular requirement is not applicable to the simple managed investment scheme.

Note The Act, as modified in accordance with Subdivision 4.2C of Division 4 of Part 7.9, requires information to be included in the Product Disclosure Statement only to the extent to which the requirement is applicable to the simple managed investment scheme.

3 Contents of section 1 (About [name of responsible entity])

(1) Section 1 of the Product Disclosure Statement must describe, in the form of a summary:

(a) the responsible entity and its role in operating the simple managed investment scheme; and

(b) the investment manager, if the investment manager is different from the responsible entity.

(2) If there is more than 1 investment manager, the Statement may describe a particular manager by applying, adopting or incorporating a matter in writing.

4 Contents of section 2 (How [name of simple managed investment scheme] works)

(1) Section 2 of the Product Disclosure Statement must describe, in the form of a summary:

(a) how the simple managed investment works; and

(b) the interests that members acquire.

(2) Section 2 must:

(a) if applicable — describe, in the form of a summary, the minimum investment amounts; and

(b) provide information about the structure of the simple managed investment scheme; and

(c) state, in general terms, that the price of interests will vary as the market value of assets in the simple managed investment scheme rises or falls; and

(d) describe, in the form of a summary, how members can increase or decrease their investment by acquiring interests or disposing of interests; and

(e) state, in general terms, that in some circumstances, such as when there is a freeze on withdrawals, members may not be able to withdraw their funds within the usual period upon request; and

(f) describe the frequency of distributions and explain how distributions are calculated.

(3) The responsible entity:

(a) may provide more detailed information on the acquisition and disposal of interests; and

(b) may provide the information by applying, adopting or incorporating a matter in writing.

5 Contents of section 3 (Benefits of investing in [name of simple managed investment scheme])

(1) Section 3 of the Product Disclosure Statement must, before setting out any other information, describe, in the form of a summary:

(a) the significant features of the simple managed investment scheme; and

(b) the significant benefits of the simple managed investment scheme.

(2) The responsible entity may provide additional information about:

(a) other features and benefits of the simple managed investment scheme; or

(b) other features and benefits of simple managed investment schemes;

by applying, adopting or incorporating a matter in writing.

6 Contents of section 4 (Risks of managed investment schemes)

(1) Section 4 of the Product Disclosure Statement must include statements to the following effect:

(a) all investments carry risk;

(b) different strategies may carry different levels of risk, depending on the assets that make up the strategy;

(2) Section 4 must describe, in the form of a summary, the significant risks of the particular simple managed investment scheme.

(3) Section 4 must describe the significant risks of managed investment schemes (to the extent only that the description required by subitem (2) has not already described the risk) by including statements to the following effect:

(a) the value of investments will vary;

(b) the level of returns will vary, and future returns may differ from past returns;

(d) laws affecting registered managed investment schemes may change in the future;

(e) the level of risk for each person will vary depending on a range of factors, including:

(i) age; and

(ii) investment time frames; and

(iii) where other parts of the member’s wealth are invested; and

(iv) the member’s risk tolerance.

(4) The responsible entity may provide additional information about significant risks of managed investment schemes by applying, adopting or incorporating a matter in writing.

7 Contents of section 5 (How we invest your money)

(1) Section 5 of the Product Disclosure Statement must describe, in the form of a summary, the investment options offered by the simple managed investment scheme.

(2) Section 5 must state, in the form of a warning, that the person should consider:

(a) the likely investment return; and

(b) the risk; and

when choosing an option in which to invest.

(3) For at least 1 investment option, section 5 must:

(a) state the name of the option and give a short description of it, including the type of investors for whom it is intended to be suitable; and

(b) list the asset classes in which the option invests, and set out, in the form of a range or otherwise, the strategic asset allocation of the asset classes; and

(d) state the minimum suggested time frame for holding the investment; and

(e) describe, in the form of a summary, the risk level of the option.

(4) If the simple managed investment scheme has a balanced investment option (within the meaning given by item 101 of Schedule 10), section 5 must give the information mentioned in subclause (3) for the balanced investment option, whether or not section 5 gives that information for any other investment option.

(5) If the simple managed investment scheme does not have a balanced investment option, section 5 must give the information mentioned in subclause (3) for the investment option under which the entity has the most funds invested, whether or not section 5 gives that information for any other investment option.

(6) Section 5:

(a) must make provision for each investment option which is not presented in section 5 in accordance with subclause (3), (4) or (5); and

(b) may make provision for the option by applying, adopting or incorporating matter in a document that:

(i) includes the information mentioned in subclause (3); and

(ii) presents it in the way mentioned in the subclause.

(7) The responsible entity:

(a) must provide information about how a member may switch the member’s investments; and

(b) must provide information about:

(i) whether the simple managed investment scheme’s investment options may be changed; and

(ii) if so, how the options may be changed; and

(d) may provide the information in paragraphs (a) to (c), and any additional information about investment options, by applying, adopting or incorporating a matter in writing.

8 Contents of section 6 (Fees and costs)

(1) For each investment option of the simple managed investment scheme that is presented in section 5 in detail in accordance with subclause 7 (3), section 6 of the Product Disclosure Statement must state:

(a) the cost of acquiring the option; and

(b) the fees and costs that are charged in relation to the option.

Note The statement will be made using the template set out in subclause (3).

(2) Before setting out any other substantive material, section 6 must:

(a) set out the Consumer Advisory Warning in clause 221 of Schedule 10; and

(b) give a concise example in the form set out in the Consumer Advisory Warning in clause 221 of Schedule 10.

(3) Section 6 must set out the fees and costs for each investment option that is presented in section 5 in detail in accordance with subclause 7 (3), using the following template:

TYPE OF FEE OR COST	AMOUNT
Fees when your money moves in or out of the fund
Establishment fee
Contribution fee
Withdrawal fee
Termination fee
Management costs
The fees and costs for managing your investment

[If there are other service fees, such as advisor service fees or special request fees, include a cross reference to the document that contains the information mentioned in paragraph (10) (a).].

(4) The template is to be completed in accordance with Division 3 of Schedule 10 (including definitions applicable to that Division), except that:

(a) clauses 203, 205, 206 and 207 and subclause 208 (2) do not apply; and

(b) the reference in clause 204 to clause 205 and clause 206 does not apply; and

“(for example, by using an asterisk with a footnote stating ‘The amount of this fee can be negotiated’)”.

(5) Section 6 must set out the information about fee changes set out in paragraph 209 (k) of Schedule 10.

(6) Section 6 must:

(a) state that the information in the template can be used to compare costs between different simple managed investment schemes; and

(b) state concisely, and in general terms, that fees and costs can be paid directly from the person’s account or deducted from investment returns.

(7) Section 6 must give a worked example as follows:

(a) if the simple managed investment scheme does not have a balanced investment option (within the meaning given by item 101 of Schedule 10), section 6 must give a worked example for the default investment option;

(b) if the simple managed investment scheme does not have a default option, and does not have a balanced investment option, section 6 must give a worked example for the investment option under which the entity has the most funds invested;

in accordance with Divisions 5 and 6 of Schedule 10 (including definitions applicable to those Divisions), except that clauses 211 and 220 do not apply.

(8) Section 6:

(a) must refer to the calculator provided by ASIC on its FIDO website or a similar website operated by or on behalf of ASIC; and

(b) may also refer to the calculator (if any) provided by the responsible entity on its website; and

(c) must state that each calculator referred to can be used to calculate the effect of fees and costs on account balances.

(9) If additional fees may be payable to a financial advisor, section 6 must:

(a) state, in the form of a warning, that additional fees may be paid to a financial advisor if a financial advisor is consulted; and

(b) refer to the Statement of Advice in which details of the fees are set out.

(10) The responsible entity:

(a) must provide the fees and costs of each of the investment options in accordance with Schedule 10, and may do so by applying, adopting or incorporating a matter in writing; and

(b) may provide more detailed information about fees and costs by applying, adopting or incorporating a matter in writing.

9 Contents of section 7 (How managed investment schemes are taxed)

(1) Section 7 of the Product Disclosure Statement must state, in the form of a warning, that:

(a) investing in a registered managed investment scheme is likely to have tax consequences; and

(b) persons are strongly advised to seek professional tax advice.

(2) Section 7 must also include statements to the following effect:

(a) registered managed investment schemes do not pay tax on behalf of members;

(b) members are assessed for tax on any income and capital gains generated by the registered managed investment scheme.

(3) The responsible entity may provide additional information about taxation matters relating to registered managed investment schemes by applying, adopting or incorporating a matter in writing.

10 Contents of section 8 (How to apply)

(1) Section 8 of the Product Disclosure Statement must:

(a) describe, in the form of a summary, how to invest in the simple managed investment scheme; and

(b) explain the cooling-off period that applies to the simple managed investment scheme; and

(2) The responsible entity:

(a) may provide more detailed information about cooling-off periods, complaints and dispute resolution; and

(b) may provide that information by applying, adopting or incorporating a matter in writing.

Schedule 10D Persons who are not covered by section 1433 of the Act

(regulation 10.2.36)

Item	Person	Period
1	A person who is or has been an insolvent under administration	5 years after the start of the administration
2	A body corporate that has been an externally‑administered body corporate	5 years after the start of the administration
3	A person who has been convicted of fraud	10 years after the conviction
4	A person to whom the following circumstances apply: (a) the person is the subject of legal proceedings for criminal fraud; (b) the proceedings could, because of the content or nature of the relevant originating process, result in a judgment being made that would cause a person to be someone to whom item 3 applies; (c) the court has not delivered a judgment in relation to the issue of the fraud
5	A person to whom the following circumstances apply: (a) the person has been found liable by a court for a contravention of a law relating to financial services activities; (b) the proceedings were brought by a regulator;	10 years after the conduct first occurred
	(c) the proceedings related to conduct that occurred in the course of the person’s engaging in financial services activities, and was related to that person’s activities
6	A person to whom the following circumstances apply: (a) the person is the subject of legal proceedings for a contravention of a law relating to financial services activities; (b) the proceedings were brought by a regulator; (c) the proceedings relate to conduct that occurred in the course of the person’s engaging in financial services activities, and was related to that person’s activities; (d) the court has not delivered a judgment in relation to the contravention
7	A person who has had: (a) an authorisation; or (b) a registration; or (c) a licence; or (d) the ability to engage in financial services activities; cancelled, suspended or revoked by, or as a direct result of the actions of, a regulator	5 years after the cancellation, suspension or revocation
8	A person who is a responsible officer of a person mentioned in item 1
8A	A person who is a subsidiary of a body corporate mentioned in item 2
8B	A person (person 1) who is related body corporate of a body corporate that is mentioned in item 2 (person 2), if person 2 has previously held a licence, registration or authorisation granted by a regulator mentioned in paragraphs (a) to (d) of the definition of regulator in regulation 10.2.35
9	A person an associate of whom is a person mentioned in any of items 3 to 7
10	A person who is deemed to be a registered insurance broker under subsection 24 (2) of the Insurance (Agents and Brokers) Act 1984 This item applies to the person only to the extent that the person operates insurance broking activities that are described in that Act

Schedule 12 ASIC transitional standards

(regulation 12.7.01)

1. The following provisions of Book 3 of the Prudential Notes and Prudential Standards issued by AFIC under Part 4 of the AFIC Code of a State or Territory, as in force immediately before the transfer date:

(a) the modification of the accounting standard known as Accounting Standard AASB 1032 (published in the Gazette on 12 December 1996) by Prudential Standard 3.3.1, except the definition of deposits added to the accounting standard by the Prudential Standard;

(b) Prudential Standard 3.5.4;

(d) Prudential Standard 3.7.1;

(e) Prudential Standard 3.7.4;

(f) Prudential Standard 3.7.5.

2. The following provisions of Book 4 of the Prudential Notes and Prudential Standards issued by AFIC under Part 4 of the AFIC Code of a State or Territory, as in force immediately before the transfer date:

(a) the modification of the accounting standard known Accounting Standard AASB 1032 (published in the Gazette on 12 December 1996) by Prudential Standard 4.3.1, except the definition of deposits added to the accounting standard by the Prudential Standard;

(b) Prudential Standard 4.7.1;

(d) Prudential Standard 4.7.5.

3. The following provisions of Book 5 of the Prudential Notes and Prudential Standards issued by AFIC under Part 4 of the AFIC Code of a State or Territory, as in force immediately before the transfer date:

(a) Prudential Standard 5.5.1;

(b) Prudential Standard 5.5.3;

4. The following provisions of Book 6 of the Prudential Notes and Prudential Standards issued by AFIC under Part 4 of the AFIC Code of a State or Territory, as in force immediately before the transfer date:

(a) Prudential Standard 6.7.2;

(b) Prudential Standard 6.7.4;

(d) Prudential Standard 6.8.3.