Australia

Prepared by the Office of Parliamentary Counsel, Canberra

Corporations Regulations 2001

Statutory Rules No. 193, 2001

made under the

Corporations Act 2001

Compilation No. 132

Compilation date: 2 July 2017

Includes amendments up to: F2017L00595

Registered: 13 July 2017

This compilation is in 7 volumes

Volume 1: regulations 1.0.01–6D.5.02

Volume 2: regulations 7.1.02–7.6.08E

Volume 3: regulations 7.7.01–8.4.02

Volume 4: regulations 9.1.01–12.9.03

Volume 5: Schedules 1, 2 and 2A

Volume 6: Schedules 3–13

Volume 7: Endnotes

Each volume has its own contents

This compilations includes commenced amendments made by F2017L00321

Authorised Version F2017C00544 registered 13/07/2017

About this compilation

This compilation

This is a compilation of the Corporations Regulations 2001 that shows the text of the law as

amended and in force on 2 July 2017 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending

laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any

uncommenced amendments affecting the law are accessible on the Legislation Register

(www.legislation.gov.au). The details of amendments made up to, but not commenced at, the

compilation date are underlined in the endnotes. For more information on any uncommenced

amendments, see the series page on the Legislation Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an

application, saving or transitional provision that is not included in this compilation, details are

included in the endnotes.

Editorial changes

For more information about any editorial changes made in this compilation, see the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the

modification does not amend the text of the law. Accordingly, this compilation does not show

the text of the compiled law as modified. For more information on any modifications, see the

series page on the Legislation Register for the compiled law.

Self-repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the

law, details are included in the endnotes.

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Corporations Regulations 2001 i

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

Contents

Schedule 3—Specified offices 1

Schedule 4—Prescribed amounts 3

Schedule 5C—Conduct of auditor—relevant

relationships 5 1 Money owed—debt..................................................................................................... 5

2 Money owed—deposit account................................................................................... 5

3 Public company auditor (annual appointments at AGMs to

fill vacancies) .............................................................................................................. 6

Schedule 6—Availability of names 7

Part 1—Rules for ascertaining whether names are identical 7

Part 2—Names unacceptable for registration 8

Part 3—Restricted words and phrases 10

Part 4—Consent required to use restricted words and phrases 11

Part 5—Names relating to financial institutions for use of

which consent is required 12

Schedule 7—Exemptions from requirements to set out

certain corporate particulars 13 7001 Definitions for Schedule 7 .........................................................................................13

7002 Exemption for certain IATA documents ....................................................................13

7003 Exemption for bills of lading and sea waybills ..........................................................13

7004 Exemptions—quotation of ACNs and ARBNs ..........................................................14

Schedule 7A—Content of annual transparency report 15

Part 1—Interpretation for Schedule 7A 15 7A101 Interpretation..............................................................................................................15

Part 2—Prescribed information for audit firm or authorised

audit company 16

Part 3—Prescribed information for individual auditor 17

Schedule 8—Schemes of arrangement under Part 5.1

of the Act 18

Chapter 5—External administration 18

Part 1—Interpretation and application 18

Part 2—Prescribed information relating to proposed

compromise or arrangement with creditors or class

of creditors 19

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Part 3—Prescribed information relating to proposed

compromise or arrangement with members or a

class of members 20

Part 4—Prescribed information relating to proposed

compromise or arrangement with members or class

of members for transfer to a trustee 24

Schedule 8A—Deed of company arrangement—

prescribed provisions 25 1 Administrator deemed agent of company ..................................................................25

2 Powers of administrator .............................................................................................25

3 Termination of deed where arrangement fails............................................................27

4 Priority .......................................................................................................................27

5 Discharge of debts......................................................................................................27

6 Claims extinguished...................................................................................................27

7 Bar to creditors’ claims ..............................................................................................27

8 Making claims............................................................................................................28

10 Lodging of accounts...................................................................................................28

11 Committee of inspection ............................................................................................28

12 Termination of deed where arrangement achieves purpose .......................................29

Schedule 8AA—Trustee companies 30

Schedule 8AB—Prescribed State and Territory

provisions for paragraph 601RAE (4)(a)

of the Act 31

Schedule 8AC—Prescribed State and Territory laws

and provisions for

paragraph 601RAE(4)(b) of the Act—

estate administration 32

Schedule 8AD—Prescribed State and Territory laws

and provisions for

paragraph 601RAE(4)(b) of the Act 33

Schedule 8AE—Relevant State and Territory

provisions 35

Schedule 8B—Option contract—prescribed indexes 36

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

compensation regimes 38

Schedule 9—Companies authorised to effect transfers

under Part 7.11 of the Act 42

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Schedule 10—Disclosure of fees and other costs 43

Part 1—Interpretation 43 101 Definitions .................................................................................................................43

102 Management costs......................................................................................................45

103 Transactional and operational costs ...........................................................................46

104 Indirect cost ratio .......................................................................................................46

Part 2—Fees and Costs Template, example of annual fees and

costs and Consumer Advisory Warning for Product

Disclosure Statements 47

Division 1—The fees and costs template for superannuation

products 47

201 Template for superannuation products .......................................................................47

Division 2—The fees and costs template for managed investment

products 48

202 Template for a multiple fee structure—managed investment

products......................................................................................................................48

202A Template for single fee structure—managed investment

products......................................................................................................................49

Division 3—How to fill in the template 51

203 The preamble .............................................................................................................51

204 Column 2—presentation of amounts..........................................................................51

205 Column 2—include information for each MySuper product

or investment option ..................................................................................................51

206 Presentation of multiple fee payment options ............................................................52

207 Column 3—how and when fees and costs are payable ..............................................52

208 Other material to be included in the template ............................................................52

Division 4—Additional explanation of fees and costs 53

209 Matters to be included as additional explanation of fees and

costs ...........................................................................................................................53

Division 4A—Defined fees for superannuation products 55

209A Defined fees for superannuation products..................................................................55

Division 5—Example of annual fees and costs 57

210 Example of annual fees and costs ..............................................................................57

211 Superannuation products—Example of annual fees and costs

for a MySuper product ...............................................................................................57

212 Managed investment products—Example of annual fees and

costs for a balanced investment option ......................................................................57

213 Defined benefit funds.................................................................................................58

Division 6—How to fill in the example of annual fees and costs 59

214 Fees and costs must be ongoing amounts...................................................................59

214A Example of annual fees and costs for a MySuper product—

lifecycle MySuper product.........................................................................................59

215 Minimum entry balance rule ......................................................................................59

216 Exit fees .....................................................................................................................59

217 Contribution fees........................................................................................................59

218 Administration fees and investment fees for a

superannuation product ..............................................................................................60

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218A Management costs for a managed investment product...............................................60

219 Withdrawal fees and exit fees ....................................................................................61

220 If there is no generic MySuper product or balanced

investment option.......................................................................................................61

Division 7—Consumer Advisory Warning 62

221 Consumer advisory warning ......................................................................................62

222 Where to place the Consumer Advisory Warning......................................................62

Part 3—Fees and costs in periodic statements 63

Division 1—Other Management Costs 63

301 Indirect costs related to investment and administration of

accounts .....................................................................................................................63

Division 2—Total fees 64

302 Total of fees in the periodic statement .......................................................................64

Division 3—Additional Explanation of Fees and Costs 65

303 Matters to be included as additional explanation of fees and

costs ...........................................................................................................................65

Schedule 10A—Modifications of Part 7.9 of the Act 66

Part 1—Modifications relating to sub-plans 66

Part 2—Modifications relating to Product Disclosure

Statements for RSA products 67

Part 3—Modifications relating to insurance options under

contract associated with superannuation interest 68

Part 5A—Modifications for margin loan 69

Part 5B—Modifications for superannuation products to which

Subdivision 4.2B of Division 4 of Part 7.9 applies 71

Part 5C—Modifications for simple managed investment

scheme 73

Part 6—Modifications relating to application forms and

Product Disclosure Statements for standard

employer-sponsor arrangements and successor funds 75

Part 6A—Modifications relating to MySuper measures 76

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 77

Part 8—Modifications relating to periodic statements for RSA

providers 79

Part 9—Modifications relating to periodic statements for

superannuation entities and RSA providers 81

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Part 10—Modifications relating to ongoing disclosure of

material changes and significant events in relation to

superannuation products and RSAs 82

Part 11—Modifications relating to charges for information

requested 84

Part 12—Modifications relating to information when member

leaves a fund 85

Part 13—Modifications relating to exceptions to exit reporting

period provisions 86

Part 14—Modifications relating to obligation to give

information about financial products 87

Part 15—Modifications for confirmation of transactions 89

Part 16—Modifications relating to reporting periods 90

Part 17—Modifications relating to application forms for

specified superannuation products 91

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 92

Part 19—Modifications for carbon units, Australian carbon

credit units and eligible international emissions units 93

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 104

Part 1—Modification of Part 6D.2 of the Act—disclosure to

investors not required for recognised offer under

Chapter 8 104

Part 2—Modification of Part 7.9 of the Act—disclosure to

investors not required for recognised offer under

Chapter 8 105

Schedule 10BA—Modifications of the Act relating to

Short-Form Product Disclosure

Statements 107

Part 1—Modifications of Part 7.7 of the Act 107

Part 2—Modifications of Part 7.8 of the Act 108

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Part 3—Modifications of Part 7.9 of the Act 109

Schedule 10C—Form and content of Product

Disclosure Statement—margin loan 118 1 Length and font size for Product Disclosure Statement for

margin loan ..............................................................................................................118

2 Minimum content of Product Disclosure Statement for

margin loan ..............................................................................................................118

3 Contents of section 1 (About [name of provider of the

margin loan] and [name of margin loan product]) ...................................................119

4 Contents of section 2 (Benefits of [name of margin loan

product]) ..................................................................................................................120

5 Contents of section 3 (How [name of margin loan product]

works) ......................................................................................................................120

6 Contents of section 4 (What is a margin call?).........................................................121

7 Contents of section 5 (The risk of losing money) ....................................................122

8 Contents of section 6 (The costs) .............................................................................122

9 Contents of section 7 (How to apply).......................................................................123

Schedule 10D—Form and content of Product

Disclosure Statement—superannuation

product to which Subdivision 4.2B of

Division 4 of Part 7.9 applies 124 1 Length and font size for Product Disclosure Statement for

superannuation product ............................................................................................124

2 Minimum content of Product Disclosure Statement for

superannuation product ............................................................................................124

3 Contents of section 1 (About [name of superannuation

product]) ..................................................................................................................125

4 Contents of section 2 (How super works) ................................................................126

5 Contents of section 3 (Benefits of investing with [name of

superannuation product]) .........................................................................................126

6 Contents of section 4 (Risks of super) .....................................................................127

7 Contents of section 5 (How we invest your money) ................................................127

8 Contents of section 6 (Fees and costs) .....................................................................129

9 Contents of section 7 (How super is taxed)..............................................................131

10 Contents of section 8 (Insurance in your super) .......................................................131

11 Contents of section 9 (How to open an account)......................................................133

Schedule 10E—Form and content of Product

Disclosure Statement—simple managed

investment scheme 134 1 Length and font size for Product Disclosure Statement for

simple managed investment scheme ........................................................................134

2 Minimum content of Product Disclosure Statement for

simple managed investment scheme ........................................................................134

3 Contents of section 1 (About [name of responsible entity]).....................................135

4 Contents of section 2 (How [name of simple managed

investment scheme] works)......................................................................................136

5 Contents of section 3 (Benefits of investing in [name of

simple managed investment scheme])......................................................................136

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6 Contents of section 4 (Risks of managed investment

schemes) ..................................................................................................................136

7 Contents of section 5 (How we invest your money) ................................................137

8 Contents of section 6 (Fees and costs) .....................................................................139

9 Contents of section 7 (How managed investment schemes

are taxed) .................................................................................................................141

10 Contents of section 8 (How to apply).......................................................................141

Schedule 11—Persons who are not covered by

section 1433 of the Act 142

Schedule 12—ASIC transitional standards 144

Schedule 13—Transition to Part 3 of the Insolvency

Practice Schedule (Corporations) 145

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Specified offices Schedule 3

Corporations Regulations 2001 1

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

Schedule 3—Specified offices (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

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Schedule 3 Specified offices

2 Corporations Regulations 2001

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Column 1 Column 2 Column 3 Column 4

Item Office Law Jurisdiction

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

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Prescribed amounts Schedule 4

Corporations Regulations 2001 3

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

Schedule 4—Prescribed amounts (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)

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Schedule 4 Prescribed amounts

4 Corporations Regulations 2001

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Column 1 Column 2 Column 3

Item Matter Amount ($)

(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

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Conduct of auditor—relevant relationships Schedule 5C

Clause 1

Corporations Regulations 2001 5

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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

(C) a related body corporate; and

(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:

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Schedule 5C Conduct of auditor—relevant relationships

Clause 3

6 Corporations Regulations 2001

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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

(c) all disclosing entities;

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,”.

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Availability of names Schedule 6

Rules for ascertaining whether names are identical Part 1

Corporations Regulations 2001 7

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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;

(c) whether a word is in the plural or singular number in one or both 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

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Schedule 6 Availability of names

Part 2 Names unacceptable for registration

8 Corporations Regulations 2001

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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

(c) subject to rule 6205, includes the word ‘Commonwealth’ or ‘Federal’; 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:

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Corporations Regulations 2001 9

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(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.

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Schedule 6 Availability of names

Part 3 Restricted words and phrases

10 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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

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Availability of names Schedule 6

Consent required to use restricted words and phrases Part 4

Corporations Regulations 2001 11

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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

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Schedule 6 Availability of names

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

12 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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

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Exemptions from requirements to set out certain corporate particulars Schedule 7

Corporations Regulations 2001 13

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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;

(c) Bakke-WA Pty Limited;

(d) Blue Star Line Limited;

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Schedule 7 Exemptions from requirements to set out certain corporate particulars

14 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

(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.

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Content of annual transparency report Schedule 7A

Interpretation for Schedule 7A Part 1

Corporations Regulations 2001 15

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

Schedule 7A—Content of annual transparency report (subregulation 2M.4A.02(1))

Part 1—Interpretation for Schedule 7A

7A101 Interpretation

In this Schedule:

management body, for an authorised audit company, means the Board of

Directors.

relevant transparency reporting year means the transparency reporting year to

which an annual transparency report relates.

Note 1: Many terms and expressions used in this Schedule have the meaning given by the Act.

For example:

 annual transparency report

 audit

 audit activity

 audit firm

 authorised audit company

 director

 engage in audit activity

 financial year

 individual auditor

 non-audit services provider

 professional accounting body

 professional member of an audit team

 remuneration

 transparency reporting auditor

 transparency reporting year.

Note 2: See regulation 2M.4A.01 for an application provision that, read in combination with

regulation 2M.4A.02, is relevant to Schedule 7A.

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Schedule 7A Content of annual transparency report

Part 2 Prescribed information for audit firm or authorised audit company

16 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

Part 2—Prescribed information for audit firm or authorised

audit company

Item Information

7A201 A description of the transparency reporting auditor’s:

(a) legal structure; and

(b) ownership

7A202 If the transparency reporting auditor belongs to a network, a description of:

(a) the network; and

(b) the legal arrangements of the network; and

(c) the structural arrangements of the network

7A203 A description of the transparency reporting auditor’s governance structure

7A204 A description of the transparency reporting auditor’s internal quality control system

7A205 A statement by the transparency reporting auditor’s administrative body or

management body on the effectiveness of the functioning of the transparency reporting

auditor’s internal quality control system in the relevant transparency reporting year

7A206 The name of each body that is authorised to review the transparency reporting auditor

(for example, ASIC or a professional accounting body) and the date of the most recent

review of the transparency reporting auditor conducted by the body

7A207 The names of bodies of the kinds mentioned in subsection 332A(1) of the Act for

which the transparency reporting auditor conducted an audit under Division 3 of

Part 2M.3 of the Act in the relevant transparency reporting year

7A208 A statement about the transparency reporting auditor’s independence practices in the

relevant transparency reporting year, including the date on which the transparency

reporting auditor most recently conducted an internal review of its independence

compliance

7A209 A statement about the policy that the transparency reporting auditor follows regarding

the minimum amount and nature of continuing or other professional education that

professional members of an audit team must undertake during the relevant transparency

reporting year

7A210 Financial information for the transparency reporting auditor that relates to the relevant

transparency reporting year, including:

(a) total revenue; and

(b) revenue relating to:

(i) audits of financial statements conducted by the transparency reporting

auditor; and

(ii) other services provided by the transparency reporting auditor

7A211 Information concerning the basis for remuneration of:

(a) the audit firm’s partners; or

(b) the authorised audit company’s directors

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Content of annual transparency report Schedule 7A

Prescribed information for individual auditor Part 3

Corporations Regulations 2001 17

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

Part 3—Prescribed information for individual auditor

Item Information

7A301 If the transparency reporting auditor belongs to a network, a description of:

(a) the network; and

(b) the legal arrangements of the network; and

(c) the structural arrangements of the network

7A302 A description of the transparency reporting auditor’s internal quality control system

7A303 The name of each body that is authorised to review the transparency reporting auditor

(for example, ASIC or a professional accounting body) and the date of the most recent

review of the transparency reporting auditor conducted by the body

7A304 The names of bodies of the kinds mentioned in subsection 332A(1) of the Act for

which the transparency reporting auditor conducted an audit under Division 3 of

Part 2M.3 of the Act in the relevant transparency reporting year

7A305 A statement that sets out the transparency reporting auditor’s independence practices in

the relevant transparency reporting year

7A306 Financial information for the transparency reporting auditor that relates to the relevant

transparency reporting year, including:

(a) total revenue; and

(b) revenue relating to:

(i) audits of financial statements conducted by the transparency reporting

auditor; and

(ii) other services provided by the transparency reporting auditor

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Schedule 8 Schemes of arrangement under Part 5.1 of the Act

Chapter 5 External administration

Part 1 Interpretation and application

18 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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

(c) a relative of the spouse of a member.

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.

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Schemes of arrangement under Part 5.1 of the Act Schedule 8

External administration Chapter 5

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

creditors Part 2

Corporations Regulations 2001 19

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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

(c) a list of the names of all known scheme creditors and the debts owed to

those creditors; 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 an endorsement 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;

(c) if the company the subject of the Scheme is a trustee, a statement:

(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.

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Schedule 8 Schemes of arrangement under Part 5.1 of the Act

Chapter 5 External administration

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

class of members

20 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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

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Schemes of arrangement under Part 5.1 of the Act Schedule 8

External administration Chapter 5

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

members Part 3

Corporations Regulations 2001 21

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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.

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Schedule 8 Schemes of arrangement under Part 5.1 of the Act

Chapter 5 External administration

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

class of members

22 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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.

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Schemes of arrangement under Part 5.1 of the Act Schedule 8

External administration Chapter 5

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

members Part 3

Corporations Regulations 2001 23

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

(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

(c) the future employment of the present employees of the company.

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Schedule 8 Schemes of arrangement under Part 5.1 of the Act

Chapter 5 External administration

Part 4 Prescribed information relating to proposed compromise or arrangement with members or class

of members for transfer to a trustee

24 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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.

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Deed of company arrangement—prescribed provisions Schedule 8A

Clause 1

Corporations Regulations 2001 25

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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;

(c) to grant options over property of the company on such conditions as the

administrator thinks fit;

(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;

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Schedule 8A Deed of company arrangement—prescribed provisions

Clause 2

26 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

(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.

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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

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Clause 8

28 Corporations Regulations 2001

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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

(c) a reference to a relevant date were a reference to the date of the

administrator’s appointment .

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;

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(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.

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Schedule 8AA Trustee companies

30 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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

6A Australian Unity Trustees 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 Pty Ltd

12 National Australia Trustees 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 Company Ltd

26 The Trust Company Limited

27 The Trust Company (Australia) Limited

27A The Trust Company (PTCCL) Limited

28 The Trust Company (UTCCL) Limited

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Corporations Regulations 2001 31

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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

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

Act—estate administration

32 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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)

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8AD

Corporations Regulations 2001 33

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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

1A Legal Profession Act 2004 and any regulations made under that Act

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

7A Legal Profession Act 2004 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

18A Legal Profession Act 2008 and any regulations made under that Act

18B Public Trustee Act 1941 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 Infirm Persons’ Property Act 1940 and any regulations made under that Act

22 Guardianship and Administration Act 1993 and any regulations made under that Act

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Act

34 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

Item State or Territory law and provisions

23 Legal Practitioners Act 1981 and any regulations made under that Act

24 Public Trustee Act 1995 and any regulations made under that Act

25 Trustee Act 1936 and any regulations made under that Act

25A Trustee Companies Act 1988 and any regulations made under that Act

TASMANIA

26 Administration and Probate Act 1935 and any regulations made under that Act

26A Legal Profession Act 2007 and any regulations made under that Act

26B Public Trustee Act 1930 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

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Corporations Regulations 2001 35

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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

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Schedule 8B Option contract—prescribed indexes

36 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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

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Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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

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

38 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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

(c) the operator of the market or related body corporate of the operator of the

market;

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

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Corporations Regulations 2001 39

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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

6 After subsection 885D(2)

Insert:

(2A) Despite subsection (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

(c) either:

(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.

(2B) Despite subsection (2), if:

(a) the requirements of subsection 885C(1) are satisfied in relation to a

participant and a financial market; and

(b) the loss is also connected (see section 888A) with a financial market to

which Division 4 applies; and

(c) the person did not (expressly or impliedly) instruct the participant to use a

particular one of those markets; and

(d) it is not reasonably apparent from the usual business practice of the

participant which of those markets the participant would use when acting

for the person; and

(e) the loss is connected with a transaction effected through a financial market

to which Division 3 applies; and

(f) a claim cannot be made, or has been disallowed, under Division 4 (see

subsection 888A(1));

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.

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

40 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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

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Corporations Regulations 2001 41

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

insert

for a set of compensation arrangements

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Schedule 9 Companies authorised to effect transfers under Part 7.11 of the Act

42 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

Schedule 9—Companies authorised to effect transfers

under Part 7.11 of the Act (regulation 7.11.01, definition of beneficial owner)

Item Companies

1 ANZ Nominees Limited

2 CHESS Depositary Nominees Pty Limited

3 Equity Nominees Limited

4 National Nominees Limited

5 Perpetual Nominees Limited

6 Sepon (Australia) Pty Limited

7 State Street Australia Ltd

8 The Trust Company (Nominees) Limited

9 The Trust Company (PTAL) Limited

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Disclosure of fees and other costs Schedule 10

Interpretation Part 1

Clause 101

Corporations Regulations 2001 43

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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:

activity fee, for a superannuation product, has the meaning given by

subsection 29V(7) of the SIS Act.

administration fee, for a superannuation product, has the meaning given by

subsection 29V(2) of the SIS Act.

advice fee:

(a) for a superannuation product—has the meaning given by

subsection 29V(8) of the SIS Act; and

(b) for a managed investment product—means an amount that is:

(i) paid or payable to a financial adviser for financial product advice to a

retail client or product holder about an investment; and

(ii) not included in a contribution fee, withdrawal fee, exit 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:

(a) for a superannuation product—has the meaning given by

subsection 29V(4) of the SIS Act; or

(b) for a managed investment product—means an amount, deducted from the

value of a financial product of a product holder, that represents an

apportionment, among product holders, of the actual or estimated

transaction costs incurred by the managed investment scheme.

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 advice fee.

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Schedule 10 Disclosure of fees and other costs

Part 1 Interpretation

Clause 101

44 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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.

exit fee:

(a) for a superannuation product—has the meaning given by

subsection 29V(6) of the SIS Act; and

(b) for a managed investment product—means an amount paid or payable on

the disposal of all interests held in 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.

indirect cost of a MySuper product or an investment option offered by a

superannuation entity means any amount that:

(a) a trustee of the entity knows, or reasonably ought to know, will directly or

indirectly reduce the return on the investment of a member of the entity in

the MySuper product or investment option; and

(b) is not charged to the member as a fee.

insurance fee, for a superannuation product, has the meaning given by

subsection 29V(9) of the SIS Act.

investment fee, for a superannuation product, has the meaning given by

subsection 29V(3) of the SIS Act.

lifecycle MySuper product has the meaning given by regulation 7.9.07N.

lifecycle stage has the meaning given by regulation 7.9.07N.

performance, of a managed investment product, a superannuation product, a

MySuper product or an investment option, includes:

(a) income in relation to the assets of, or attributed to, the managed investment

product, the superannuation product, the MySuper product or the

investment option; and

(b) capital appreciation (realised or unrealised) to the value of the managed

investment product, the superannuation product, the MySuper product or

the investment option.

performance fee means an amount paid or payable, calculated by reference to

the performance of a managed investment product, a superannuation product, a

MySuper product or an investment option.

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

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Disclosure of fees and other costs Schedule 10

Interpretation Part 1

Clause 102

Corporations Regulations 2001 45

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

special request fees includes fees paid or deducted from a product holder’s

managed investment product for a request made to the managed investment

scheme.

Example: This applies to a fee for a request for additional information from a managed

investment scheme.

switching fee:

(a) for a superannuation product—has the meaning given by

subsection 29V(5) of the SIS Act; or

(b) for a managed investment product—means an amount paid or payable

when a product holder transfers all or part of the product holder’s interest

in the managed investment product from one investment option to another.

withdrawal fee means an amount, other than an exit 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, for a managed investment product, means any of the

following:

(a) an amount payable for administering the managed investment scheme;

(b) for a custodial arrangement—the cost involved, or amount paid or payable,

for gaining access to, or participating in, the arrangement;

(c) distribution costs;

(d) other expenses and reimbursements in relation to the managed investment

scheme;

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

investment scheme;

(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 for a managed

investment product:

(a) a contribution fee;

(b) transactional and operational costs;

(c) an additional service fee;

(d) an establishment fee;

(e) a switching fee;

(f) an exit fee;

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Schedule 10 Disclosure of fees and other costs

Part 1 Interpretation

Clause 103

46 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

(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;

(c) settlement costs (including custody costs);

(d) clearing costs;

(e) stamp duty on an investment transaction.

104 Indirect cost ratio

(1) The indirect cost ratio (ICR), for a MySuper product or an investment option

offered by a superannuation entity, is the ratio of the total of the indirect costs for

the MySuper product or investment option, to the total average net assets of the

superannuation entity attributed to the MySuper product or investment option.

Note: A fee deducted directly from a member’s account is not included in the indirect cost

ratio.

(1A) The indirect cost ratio (ICR), for an investment option offered by a managed

investment scheme, is the ratio of the management costs for the option that are

not deducted directly from a product holder’s account, to the total average net

assets of the managed investment scheme that relates to the investment option.

Note: A fee deducted directly from a product holder’s account 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.

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Disclosure of fees and other costs Schedule 10

Fees and Costs Template, example of annual fees and costs and Consumer Advisory Warning for

Product Disclosure Statements Part 2

The fees and costs template for superannuation products Division 1

Clause 201

Corporations Regulations 2001 47

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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 for superannuation products

201 Template for superannuation products

Fees and other costs

This document shows fees and other costs that you may be charged. These fees and other

costs may be deducted from your money, from the returns on your investment or from the

assets of the superannuation entity as a whole.

Other fees, such as activity fees, advice fees for personal advice and insurance fees, may also

be charged, but these will depend on the nature of the activity, advice or insurance chosen by

you.

Taxes, insurance fees and other costs relating to insurance are set out in another part of this

document.

You should read all the information about fees and other costs because it is important to

understand their impact on your investment.

[If relevant] The fees and other costs for each MySuper product offered by the

superannuation entity, and each investment option offered by the entity, are set out on page

[insert page number].

[Name of superannuation product]

Type of fee Amount How and when paid

Investment fee

Administration fee

Buy-sell spread

Switching fee

Exit fee

Advice fees

relating to all members

investing in a particular

MySuper product or investment

option

Other fees and costs¹

Indirect cost ratio

1. [If there are other fees and costs, such as activity fees, advice fees for personal advice or insurance fees, include a cross-reference to the “Additional Explanation of Fees and Costs”.]

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Schedule 10 Disclosure of fees and other costs

Part 2 Fees and Costs Template, example of annual fees and costs and Consumer Advisory Warning

for Product Disclosure Statements

Division 2 The fees and costs template for managed investment products

Clause 202

48 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

Division 2—The fees and costs template for managed investment

products

202 Template for a multiple fee structure—managed investment products

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 assets of the

managed investment scheme 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 managed investment scheme; 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].

[Name of managed investment product]

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

managed investment

product

Establishment fee

The fee to open your

investment

Contribution fee¹

The fee on each amount

contributed to your

investment

Withdrawal fee¹

The fee on each amount

you take out of your

investment

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Disclosure of fees and other costs Schedule 10

Fees and Costs Template, example of annual fees and costs and Consumer Advisory Warning for

Product Disclosure Statements Part 2

The fees and costs template for managed investment products Division 2

Clause 202A

Corporations Regulations 2001 49

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

[Name of managed investment product]

Type of fee or cost Amount How and when paid

Exit 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

Switching fee

The fee for changing

investment options

1. This fee includes an amount payable to an adviser. (See Division 4, “Adviser remuneration” under the heading “Additional Explanation of Fees and Costs”.)

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

202A Template for single fee structure—managed investment products

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 assets of the

managed investment scheme 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].

[Name of managed investment product]

Type of fee or cost Amount How and when paid

Fees when your

money moves in or

out of the managed

investment product

Establishment fee

The fee to open your

investment

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Schedule 10 Disclosure of fees and other costs

Part 2 Fees and Costs Template, example of annual fees and costs and Consumer Advisory Warning

for Product Disclosure Statements

Division 2 The fees and costs template for managed investment products

Clause 202A

50 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

[Name of managed investment product]

Type of fee or cost Amount How and when paid

Contribution fee¹

The fee on each

amount contributed to

your investment

Withdrawal fee¹

The fee on each

amount you take out of

your investment

Exit 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

Switching fee

The fee for changing

investment options

1. This fee includes an amount payable to an adviser. (See Division 4, “Adviser remuneration” under the heading “Additional Explanation of Fees and Costs”.)

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

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Disclosure of fees and other costs Schedule 10

Fees and Costs Template, example of annual fees and costs and Consumer Advisory Warning for

Product Disclosure Statements Part 2

How to fill in the template Division 3

Clause 203

Corporations Regulations 2001 51

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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 product holder’s 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—include information for each MySuper product or investment

option

(1) The fee information must be set out:

(a) for superannuation products—for each MySuper product and each

investment option offered by the relevant superannuation entity; and

(b) for managed investment products—for each investment option offered by

the relevant managed investment scheme.

(2) It may 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.

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Schedule 10 Disclosure of fees and other costs

Part 2 Fees and Costs Template, example of annual fees and costs and Consumer Advisory Warning

for Product Disclosure Statements

Division 3 How to fill in the template

Clause 206

52 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

206 Presentation of multiple fee payment options

If a superannuation entity or managed investment scheme 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 assets of the superannuation entity or managed investment

scheme;

(iii) contributions; or

(iv) withdrawals; and

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

(c) the timing of the recovery of the fee.

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.

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Disclosure of fees and other costs Schedule 10

Fees and Costs Template, example of annual fees and costs and Consumer Advisory Warning for

Product Disclosure Statements Part 2

Additional explanation of fees and costs Division 4

Clause 209

Corporations Regulations 2001 53

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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 superannuation product or

managed investment product, must be included under the heading ‘Additional

Explanation of Fees and Costs’:

(a) the explanation of the fees mentioned in footnote 1 for superannuation

products and footnote 2 for managed investment products;

(b) information on performance fees including:

(i) a statement about how performance fees affect administration fees and

investment fees for a superannuation product, or management costs

for a managed investment product; 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;

(c) for tax—a cross reference to the “Tax” part of the Product Disclosure

Statement;

(ca) for insurance fees and other costs relating to insurance (if relevant)—a

cross reference to the “Insurance” part of the Product Disclosure

Statement;

(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 product issuer):

(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 advice 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:

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Schedule 10 Disclosure of fees and other costs

Part 2 Fees and Costs Template, example of annual fees and costs and Consumer Advisory Warning

for Product Disclosure Statements

Division 4 Additional explanation of fees and costs

Clause 209

54 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

(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 product—details regarding the protection of small

accounts (member protection rules) unless already included in the Product

Disclosure Statement.

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Fees and Costs Template, example of annual fees and costs and Consumer Advisory Warning for

Product Disclosure Statements Part 2

Defined fees for superannuation products Division 4A

Clause 209A

Corporations Regulations 2001 55

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

Division 4A—Defined fees for superannuation products

209A Defined fees for superannuation products

The following definitions must be included for a superannuation product under

the heading “Defined fees”:

Activity fees

A fee is an activity fee if:

(a) the fee relates to costs incurred by the trustee [OR the trustees] of the

superannuation entity that are directly related to an activity of the trustee

[OR the trustees]:

(i) that is engaged in at the request, or with the consent, of a member; or

(ii) that relates to a member and is required by law; and

(b) those costs are not otherwise charged as an administration fee, an

investment fee, a buy-sell spread, a switching fee, an exit fee, an advice fee

or an insurance fee.

Administration fees

An administration fee is a fee that relates to the administration or operation of

the superannuation entity and includes costs incurred by the trustee [OR the

trustees] of the entity that:

(a) relate to the administration or operation of the entity; and

(b) are not otherwise charged as an investment fee, a buy-sell spread, a

switching fee, an exit fee, an activity fee, an advice fee or an insurance fee.

Advice fees

A fee is an advice fee if:

(a) the fee relates directly to costs incurred by the trustee [OR the trustees] of

the superannuation entity because of the provision of financial product

advice to a member by:

(i) a trustee of the entity; or

(ii) another person acting as an employee of, or under an arrangement

with, the trustee [OR the trustees] of the entity; and

(b) those costs are not otherwise charged as an administration fee, an

investment fee, a switching fee, an exit fee, an activity fee or an insurance

fee.

Buy-sell spreads

A buy-sell spread is a fee to recover transaction costs incurred by the trustee [OR

the trustees] of the superannuation entity in relation to the sale and purchase of

assets of the entity.

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Schedule 10 Disclosure of fees and other costs

Part 2 Fees and Costs Template, example of annual fees and costs and Consumer Advisory Warning

for Product Disclosure Statements

Division 4A Defined fees for superannuation products

Clause 209A

56 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

Exit fees

An exit fee is a fee to recover the costs of disposing of all or part of members’

interests in the superannuation entity.

Indirect cost ratio

The indirect cost ratio (ICR), for a MySuper product or an investment option

offered by a superannuation entity, is the ratio of the total of the indirect costs for

the MySuper product or investment option, to the total average net assets of the

superannuation entity attributed to the MySuper product or investment option.

Note: A dollar-based fee deducted directly from a member’s account is not included in the

indirect cost ratio.

Investment fees

An investment fee is a fee that relates to the investment of the assets of a

superannuation entity and includes:

(a) fees in payment for the exercise of care and expertise in the investment of

those assets (including performance fees); and

(b) costs incurred by the trustee [OR the trustees] of the entity that:

(i) relate to the investment of assets of the entity; and

(ii) are not otherwise charged as an administration fee, a buy-sell spread,

a switching fee, an exit fee, an activity fee, an advice fee or an

insurance fee.

Switching fees

A switching fee is a fee to recover the costs of switching all or part of a

member’s interest in the superannuation entity from one class of beneficial

interest in the entity to another.

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Disclosure of fees and other costs Schedule 10

Fees and Costs Template, example of annual fees and costs and Consumer Advisory Warning for

Product Disclosure Statements Part 2

Example of annual fees and costs Division 5

Clause 210

Corporations Regulations 2001 57

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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

(c) must be included in the ‘Fees’ section of a Product Disclosure Statement,

following the fees and costs template.

211 Superannuation products—Example of annual fees and costs for a MySuper

product

This table gives an example of how the fees and costs for the generic MySuper

product for this superannuation product can affect your superannuation

investment over a 1 year period. You should use this table to compare this

superannuation product with other superannuation products.

EXAMPLE—-MySuper product BALANCE OF $50 000

Investment fees 1.6% For every $50 000 you have in the MySuper product

you will be charged $800 each year

PLUS Administration fees $52

($1 per week)

And, you will be charged $52 in administration fees

regardless of your balance

PLUS Indirect costs for the

MySuper product

1.2% And, indirect costs of $600 each year will be deducted

from your investment

EQUALS Cost of product If your balance was $50 000, then for that year you will

be charged fees of $1 452 for the MySuper product.

Note: * Additional fees may apply. And, if you leave the superannuation entity early, you may also be charged exit fees of between 0% and 5% of your total account balance (between $0 and $2 500 for every $50 000 you withdraw).

212 Managed investment products—Example of annual fees and costs for a

balanced investment option

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 managed investment 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

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Schedule 10 Disclosure of fees and other costs

Part 2 Fees and Costs Template, example of annual fees and costs and Consumer Advisory Warning

for Product Disclosure Statements

Division 5 Example of annual fees and costs

Clause 213

58 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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 balanced

investment option you will be charged $650 each

year.

EQUALS Cost of balanced

investment option

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.

* Additional fees may apply:

Establishment fee—$50

And, if you leave the managed investment scheme early, you may also be charged exit fees of between 0 and 5% of your total

account 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.

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Disclosure of fees and other costs Schedule 10

Fees and Costs Template, example of annual fees and costs and Consumer Advisory Warning for

Product Disclosure Statements Part 2

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

Clause 214

Corporations Regulations 2001 59

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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 typical ongoing fees that apply

to the MySuper 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 or product holder having the stated balance and level

of contributions each year.

214A Example of annual fees and costs for a MySuper product—lifecycle

MySuper product

If the example of fees and costs for a MySuper product uses a lifecycle MySuper

product, the investment fee quoted in the example must be the highest investment

fee for a lifecycle stage of the lifecycle MySuper product.

215 Minimum entry balance rule

If the minimum balance required to enter a superannuation entity or a managed

investment scheme 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 superannuation entity or a managed investment scheme has a minimum entry

balance of $65 000, the relevant amount for the example of annual fees and costs is

$100 000.

216 Exit fees

If an exit fee may be charged, it must be described in footnote to the table, 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 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

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Schedule 10 Disclosure of fees and other costs

Part 2 Fees and Costs Template, example of annual fees and costs and Consumer Advisory Warning

for Product Disclosure Statements

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

Clause 218

60 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

(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 Administration fees and investment fees for a superannuation product

Administration fees

(1) The example of administration fees for a MySuper product or an investment

option offered by a superannuation entity 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) If there is a range in the amount of administration fees that may be charged for a

MySuper product or an investment option offered by a superannuation entity, the

example must use the highest administration fees in the range.

Investment fees

(3) The example of investment fees for a MySuper product or an investment option

offered by a superannuation entity 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.

(4) If there is a range in the amount of investment fees that may be charged for a

MySuper product or an investment option offered by a superannuation entity, the

example must use the highest investment fees in the range.

Indirect costs for a MySuper product or investment option

(5) The example of indirect costs for a MySuper product or an investment option

offered by a superannuation entity must be worked out by applying the indirect

cost ratio for the MySuper product or the investment option to an amount of

$50,000 or an amount that is a multiple of $50,000 if clause 215 applies.

218A Management costs for a managed investment product

(1) The example of management costs for an investment option offered by a

managed investment scheme 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) If there is a range in the amount of management costs that may be charged for an

investment option offered by a managed investment scheme, the example must

use the highest management costs in the range.

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Disclosure of fees and other costs Schedule 10

Fees and Costs Template, example of annual fees and costs and Consumer Advisory Warning for

Product Disclosure Statements Part 2

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

Clause 219

Corporations Regulations 2001 61

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

(3) Management costs that are not deducted directly from a product holder’s account

must be calculated using the indirect cost ratio for the relevant investment option

offered by the managed investment scheme.

(4) Any percentage based management costs that are deducted directly from a

product holder’s account should be added to the percentage amount calculated

under subclause (3).

(5) Any dollar based management costs that are deducted directly from a product

holder’s account must be shown separately in the management costs cell.

Example 1: Management costs: 2 % deducted directly from your account + 1.6% deducted

indirectly.

Example 2: Management costs: $52 per year ($1 per week) deducted directly from your account +

1.6% deducted indirectly.

Example 3: Management costs: $52 per year ($1 per week) + 1% deducted directly from your

account + 1.6% deducted indirectly.

219 Withdrawal fees and exit fees

(1) The example of a withdrawal fee or an exit 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 generic MySuper product or balanced investment option

Superannuation entities

(1) If a superannuation entity does not offer a generic MySuper product, the example

should be based on:

(a) where the superannuation entity offers a balanced investment option—the

balanced investment option under which most assets of the superannuation

entity are invested; and

(b) where the superannuation entity does not offer a balanced investment

option—the investment option under which most assets of the

superannuation entity are invested.

Managed investment schemes

(2) If a managed investment scheme does not offer a balanced investment option, the

example should be based on:

(a) where the scheme offers a default investment option—that option; and

(b) where the scheme does not offer a default investment option—the

investment option under which most assets of the scheme are invested.

Authorised Version F2017C00544 registered 13/07/2017

Schedule 10 Disclosure of fees and other costs

Part 2 Fees and Costs Template, example of annual fees and costs and Consumer Advisory Warning

for Product Disclosure Statements

Division 7 Consumer Advisory Warning

Clause 221

62 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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 account 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.

Your employer may be able to negotiate to pay lower administration fees. 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.moneysmart.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.

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Disclosure of fees and other costs Schedule 10

Fees and costs in periodic statements Part 3

Other Management Costs Division 1

Clause 301

Corporations Regulations 2001 63

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

Part 3—Fees and costs in periodic statements

Division 1—Other Management Costs

301 Indirect costs related to investment and administration of accounts

(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.

Indirect costs of your investment

This approximate amount has been deducted from your investment and includes

amounts that have reduced the return on your investment but are not charged

directly to you as a fee.

(2) The amount inserted must include:

(a) for a MySuper product or an investment option offered by a superannuation

entity—the indirect costs for the MySuper product or investment option;

and

(b) for an investment option offered by a managed investment scheme—all

management costs not deducted directly from a product holder’s account

during the reporting period.

(3) The amount must be shown as a single total amount in dollars.

(4) The amount for a managed investment product must be calculated by multiplying

the indirect cost ratio for the relevant investment option by the product holder’s

average account balance for the option over the reporting period.

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Schedule 10 Disclosure of fees and other costs

Part 3 Fees and costs in periodic statements

Division 2 Total fees

Clause 302

64 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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.

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Disclosure of fees and other costs Schedule 10

Fees and costs in periodic statements Part 3

Additional Explanation of Fees and Costs Division 3

Clause 303

Corporations Regulations 2001 65

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

Division 3—Additional Explanation of Fees and Costs

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

Superannuation products

(1) The following information must be included in the periodic statement for a

superannuation product 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 any activity fees, advice fees and insurance fees that were

incurred by the member during the period;

(b) for a superannuation 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.

Managed investment products

(2) 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 product holder during the period;

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

holder;

(c) for a managed investment 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.

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Schedule 10A Modifications of Part 7.9 of the Act

Part 1 Modifications relating to sub-plans

66 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

Schedule 10A—Modifications of Part 7.9 of the Act (regulations 7.9.02, 7.9.04, 7.9.05, 7.9.06, 7.9.09C, 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.

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Modifications of Part 7.9 of the Act Schedule 10A

Modifications relating to Product Disclosure Statements for RSA products Part 2

Corporations Regulations 2001 67

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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

(C) on the request of the Australian Prudential Regulation

Authority.

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Schedule 10A Modifications of Part 7.9 of the Act

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

interest

68 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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.

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Modifications of Part 7.9 of the Act Schedule 10A

Modifications for margin loan Part 5A

Corporations Regulations 2001 69

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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.

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Schedule 10A Modifications of Part 7.9 of the Act

Part 5A Modifications for margin loan

70 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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

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Modifications of Part 7.9 of the Act Schedule 10A

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

Part 5B

Corporations Regulations 2001 71

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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.

(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.

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Schedule 10A Modifications of Part 7.9 of the Act

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

7.9 applies

72 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

(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.

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

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Modifications of Part 7.9 of the Act Schedule 10A

Modifications for simple managed investment scheme Part 5C

Corporations Regulations 2001 73

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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

(c) relate only to 1 simple managed investment scheme.

(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.

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Schedule 10A Modifications of Part 7.9 of the Act

Part 5C Modifications for simple managed investment scheme

74 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

(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.

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

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Modifications of Part 7.9 of the Act Schedule 10A

Modifications relating to application forms and Product Disclosure Statements for standard employer-

sponsor arrangements and successor funds Part 6

Corporations Regulations 2001 75

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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.

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Schedule 10A Modifications of Part 7.9 of the Act

Part 6A Modifications relating to MySuper measures

76 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

Part 6A—Modifications relating to MySuper measures

6A.1 After subsection 1017BA(4)

Insert:

(4AA) Despite paragraph 1539(a) of the Act, this section applies, to the extent that it

relates to MySuper products, on and after 31 December 2013.

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Modifications of Part 7.9 of the Act Schedule 10A

Modifications relating to life pensioners, members subject to compulsory protection of small amounts

and members with small amounts that are expected to grow quickly Part 7

Corporations Regulations 2001 77

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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;

(c) in so far as applicable, the information mentioned in

subregulation 7.9.21(1) of the Corporations Regulations 2001.

(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

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Schedule 10A Modifications of Part 7.9 of the Act

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

78 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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.

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Modifications of Part 7.9 of the Act Schedule 10A

Modifications relating to periodic statements for RSA providers Part 8

Corporations Regulations 2001 79

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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:

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Schedule 10A Modifications of Part 7.9 of the Act

Part 8 Modifications relating to periodic statements for RSA providers

80 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

(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.

Authorised Version F2017C00544 registered 13/07/2017

Modifications of Part 7.9 of the Act Schedule 10A

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

Corporations Regulations 2001 81

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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.

Authorised Version F2017C00544 registered 13/07/2017

Schedule 10A Modifications of Part 7.9 of the Act

Part 10 Modifications relating to ongoing disclosure of material changes and significant events in

relation to superannuation products and RSAs

82 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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.

Authorised Version F2017C00544 registered 13/07/2017

Modifications of Part 7.9 of the Act Schedule 10A

Modifications relating to ongoing disclosure of material changes and significant events in relation to

superannuation products and RSAs Part 10

Corporations Regulations 2001 83

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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.

(11) This section does not apply to a change or event in relation to a superannuation

product or an RSA product if the change or event happens because of a transfer

in accordance with paragraph 6.29(1)(ba) of the Superannuation Industry

(Supervision) Regulations 1994 in respect of the product.

Authorised Version F2017C00544 registered 13/07/2017

Schedule 10A Modifications of Part 7.9 of the Act

Part 11 Modifications relating to charges for information requested

84 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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.

Authorised Version F2017C00544 registered 13/07/2017

Modifications of Part 7.9 of the Act Schedule 10A

Modifications relating to information when member leaves a fund Part 12

Corporations Regulations 2001 85

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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.

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Schedule 10A Modifications of Part 7.9 of the Act

Part 13 Modifications relating to exceptions to exit reporting period provisions

86 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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.

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Modifications of Part 7.9 of the Act Schedule 10A

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

Corporations Regulations 2001 87

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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.

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Schedule 10A Modifications of Part 7.9 of the Act

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

88 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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.

Authorised Version F2017C00544 registered 13/07/2017

Modifications of Part 7.9 of the Act Schedule 10A

Modifications for confirmation of transactions Part 15

Corporations Regulations 2001 89

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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.

Authorised Version F2017C00544 registered 13/07/2017

Schedule 10A Modifications of Part 7.9 of the Act

Part 16 Modifications relating to reporting periods

90 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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;

Authorised Version F2017C00544 registered 13/07/2017

Modifications of Part 7.9 of the Act Schedule 10A

Modifications relating to application forms for specified superannuation products Part 17

Corporations Regulations 2001 91

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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.

Authorised Version F2017C00544 registered 13/07/2017

Schedule 10A Modifications of Part 7.9 of the Act

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

92 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

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 Financial Markets Conduct Act

2013 of New Zealand and the Financial Markets Conduct Regulations 2014

of 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.

Authorised Version F2017C00544 registered 13/07/2017

Modifications of Part 7.9 of the Act Schedule 10A

Modifications for carbon units, Australian carbon credit units and eligible international emissions units

Part 19

Corporations Regulations 2001 93

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

Part 19—Modifications for carbon units, Australian carbon

credit units and eligible international emissions

units

19.1 Subsections 1012D(1) to (3), including the subheadings

substitute

Recommendation, issue or sale situation for carbon unit—statements on Clean

Energy Regulator’s website

(1) Subject to subsections (2) and (3), in a recommendation situation, issue situation

or sale situation for a carbon unit, the regulated person:

(a) does not have to give the client a Product Disclosure Statement; and

(b) must inform the client that the client should consider each statement about

the carbon unit that is mentioned in section 202 of the Clean Energy Act

2011.

Recommendation, issue or sale situation for carbon unit—client has considered

statements on Clean Energy Regulator’s website

(2) In a recommendation situation, issue situation or sale situation for a carbon unit,

the regulated person does not have to inform the client as described in

paragraph (1)(b) if the regulated person believes, on reasonable grounds, that the

client has already considered each statement about the carbon unit that is

published on the website of the Clean Energy Regulator as mentioned in

section 202 of the Clean Energy Act 2011.

Recommendation, issue or sale situation for carbon unit—specified persons

(3) In a recommendation situation, issue situation or sale situation for a carbon unit,

the regulated person does not have to inform the client as described in

paragraph (1)(b) if the person is:

(a) the Clean Energy Regulator; or

(b) the Clean Development Mechanism Executive Board; or

(c) the government of a country other than Australia; or

(d) an authority acting on behalf of the government of a country other than

Australia.

Recommendation, issue or sale situation for Australian carbon credit unit—

statements on Clean Energy Regulator’s website

(3A) Subject to subsections (3B) and (3C), in a recommendation situation, issue

situation or sale situation for an Australian carbon credit unit, the regulated

person:

(a) does not have to give the client a Product Disclosure Statement; and

Authorised Version F2017C00544 registered 13/07/2017

Schedule 10A Modifications of Part 7.9 of the Act

Part 19 Modifications for carbon units, Australian carbon credit units and eligible international

emissions units

94 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

(b) must inform the client that the client should consider each statement about

the Australian carbon credit unit that is mentioned in section 162 of the

Carbon Credits (Carbon Farming Initiative) Act 2011.

Recommendation, issue or sale situation for Australian carbon credit unit—

client has considered statements on Clean Energy Regulator’s website

(3B) In a recommendation situation, issue situation or sale situation for an Australian

carbon credit unit, the regulated person does not have to inform the client as

described in paragraph (3A)(b) if the regulated person believes, on reasonable

grounds, that the client has already considered each statement about the

Australian carbon credit unit that is published on the website of the Clean Energy

Regulator as mentioned in section 162 of the Carbon Credits (Carbon Farming

Initiative) Act 2011.

Recommendation, issue or sale situation for Australian carbon credit unit—

specified persons

(3C) In a recommendation situation, issue situation or sale situation for an Australian

carbon credit unit, the regulated person does not have to inform the client as

described in paragraph (3A)(b) if the person is:

(a) the Clean Energy Regulator; or

(b) the Clean Development Mechanism Executive Board; or

(c) the government of a country other than Australia; or

(d) an authority acting on behalf of the government of a country other than

Australia.

Recommendation, issue or sale situation for eligible international emissions

unit—statements on Clean Energy Regulator’s website

(3D) Subject to subsections (3E) and (3F), in a recommendation situation, issue

situation or sale situation for an eligible international emissions unit, the

regulated person:

(a) does not have to give the client a Product Disclosure Statement; and

(b) must inform the client that the client should consider each statement about

the eligible international emissions unit that is mentioned in section 61 of

the Australian National Registry of Emissions Units Act 2011.

Recommendation, issue or sale situation for eligible international emissions

unit—client has considered statements on Clean Energy Regulator’s website

(3E) In a recommendation situation, issue situation or sale situation for an eligible

international emissions unit, the regulated person does not have to inform the

client as described in paragraph (3D)(b) if the regulated person believes, on

reasonable grounds, that the client has already considered each statement about

the eligible international emissions unit that is published on the website of the

Clean Energy Regulator as mentioned in section 61 of the Australian National

Registry of Emissions Units Act 2011.

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Modifications for carbon units, Australian carbon credit units and eligible international emissions units

Part 19

Corporations Regulations 2001 95

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

Recommendation, issue or sale situation for eligible international emissions

unit—specified persons

(3F) In a recommendation situation, issue situation or sale situation for an eligible

international emissions unit, the regulated person does not have to inform the

client as described in paragraph (3D)(b) if the person is:

(a) the Clean Energy Regulator; or

(b) the Clean Development Mechanism Executive Board; or

(c) the government of a country other than Australia; or

(d) an authority acting on behalf of the government of a country other than

Australia.

19.2 Subsection 1012D(5)

omit

give the client a Product Disclosure Statement

insert

inform the client as described in paragraph (1)(b), (3A)(b) or (3D)(b)

19.3 Subsection 1012D(6)

omit

give the client a Product Disclosure Statement

insert

inform the client as described in paragraph (1)(b), (3A)(b) or (3D)(b)

19.4 Subsections 1012D(7) to (10), including the subheading

omit

19.5 Subsection 1012IA(1), definition of regulated acquisition

substitute

regulated acquisition means an acquisition of a financial product pursuant to an

instruction by the client under a custodial arrangement, being an acquisition:

(a) by way of issue by the issuer (the regulated person); or

(b) pursuant to a sale by a person (the regulated person) in circumstances:

(i) described in subsection 1012C (5) or (8); or

(ii) to which subsection 1012B (3), 1012C (3) or 1012C (6) would apply

if those subsections were applicable in relation to a carbon unit, an

Australian carbon credit unit or an eligible international emissions

unit.

19.6 Subsection 1012IA(2), subheading

substitute

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Schedule 10A Modifications of Part 7.9 of the Act

Part 19 Modifications for carbon units, Australian carbon credit units and eligible international

emissions units

96 Corporations Regulations 2001

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Obligation on provider to inform client about statements on Clean Energy

Regulator’s website

19.7 Subsection 1012IA(2)

omit

must give the client a Product Disclosure Statement for the product if a Product

Disclosure Statement for the product would

insert

must inform the client that the client should consider each statement about the carbon

unit that is published on the website of the Clean Energy Regulator as mentioned in

section 202 of the Clean Energy Act 2011, or each statement about the Australian

carbon credit unit that is published on the website of the Clean Energy Regulator as

mentioned in section 162 of the Carbon Credits (Carbon Farming Initiative) Act

2011, or each statement about the eligible international emissions unit that is

published on the website of the Clean Energy Regulator as mentioned in section 61 of

the Australian National Registry of Emissions Units Act 2011, if the statement would

19.8 Subsection 1012IA(3), subheading

substitute

Determining whether client should be informed about statements on Clean

Energy Regulator’s website for an equivalent direct acquisition

19.9 Subsection 1012IA(3)

omit

give the client a Product Disclosure Statement for the financial product

insert

inform the client that the client should consider each statement about the carbon unit

that is published on the website of the Clean Energy Regulator as mentioned in

section 202 of the Clean Energy Act 2011, or each statement about the Australian

carbon credit unit that is published on the website of the Clean Energy Regulator as

mentioned in section 162 of the Carbon Credits (Carbon Farming Initiative) Act

2011, or each statement about the eligible international emissions unit that is

published on the website of the Clean Energy Regulator as mentioned in section 61 of

the Australian National Registry of Emissions Units Act 2011

19.10 Paragraph 1017E(1)(b)

substitute

(b) a seller (the product provider) of a carbon unit in relation to which the

seller has informed the client that the client should consider each statement

about the carbon unit that is published on the website of the Clean Energy

Regulator as mentioned in section 202 of the Clean Energy Act 2011; or

(ba) a seller (the product provider) of an Australian carbon credit unit in

relation to which the seller has informed the client that the client should

consider each statement about the Australian carbon credit unit that is

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published on the website of the Clean Energy Regulator as mentioned in

section 162 of the Carbon Credits (Carbon Farming Initiative) Act 2011;

or

(bb) a seller (the product provider) of an eligible international emissions unit in

relation to which the seller has informed the client that the client should

consider each statement about the eligible international emissions unit that

is published on the website of the Clean Energy Regulator as mentioned in

section 61 of the Australian National Registry of Emissions Units Act 2011;

19.11 Subsection 1017G(1)

substitute

(1) This section does not apply to:

(a) the Regulator; or

(b) the CDM Executive Board; or

(c) the government of a country other than Australia; or

(d) an authority acting on behalf of the government of a country other than

Australia.

(1A) If:

(a) carbon units are, or have been, available for acquisition (whether by issue

or sale) by a person or persons as retail clients; and

(b) the issue or sale of the carbon units is not covered by an Australian

financial services licence;

the issuer and any regulated person who is required, under subsection 1012D (1),

to inform a client that the client should consider each statement about the carbon

unit that is published on the website of the Clean Energy Regulator as mentioned

in section 202 of the Clean Energy Act 2011, must both have a dispute resolution

system complying with subsection (2).

Note 1: If the issue of the carbon units is covered by an Australian financial services licence,

the requirement to have a dispute resolution system relating to the issue of the units is

imposed by paragraph 912A(1)(g).

Note 2: Failure to comply with this subsection is an offence (see subsection 1311(1)).

(1B) If:

(a) Australian carbon credit units are, or have been, available for acquisition

(whether by issue or sale) by a person or persons as retail clients; and

(b) the issue or sale of the Australian carbon credit units is not covered by an

Australian financial services licence;

the issuer and any regulated person who is required, under

subsection 1012D(3A), to inform a client that the client should consider each

statement about the Australian carbon credit unit that is published on the website

of the Clean Energy Regulator as mentioned in section 162 of the Carbon

Credits (Carbon Farming Initiative) Act 2011, must both have a dispute

resolution system complying with subsection (2).

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Note 1: If the issue of the Australian carbon credit units is covered by an Australian financial

services licence, the requirement to have a dispute resolution system relating to the

issue of the units is imposed by paragraph 912A(1)(g).

Note 2: Failure to comply with this subsection is an offence (see subsection 1311(1)).

(1C) If:

(a) eligible international emissions units are, or have been, available for

acquisition (whether by issue or sale) by a person or persons as retail

clients; and

(b) the issue or sale of the eligible international emissions units is not covered

by an Australian financial services licence;

the issuer and any regulated person who is required, under

subsection 1012D(3D), to inform a client that the client should consider each

statement about the eligible international emissions unit that is published on the

website of the Clean Energy Regulator as mentioned in section 61 of the

Australian National Registry of Emissions Units Act 2011, must both have a

dispute resolution system complying with subsection (2).

Note 1: If the issue of the eligible international emissions units is covered by an Australian

financial services licence, the requirement to have a dispute resolution system relating

to the issue of the units is imposed by paragraph 912A(1)(g).

Note 2: Failure to comply with this subsection is an offence (see subsection 1311(1)).

19.12 Section 1018A, heading

substitute

1018A Advertising or other promotional material for financial product must

refer to statements on Clean Energy Regulator’s website

19.13 Subsection 1018A(1), subheading

substitute

Advertisements and promotional material must identify issuer (or issuer and

seller) and refer to statements on Clean Energy Regulator’s website

19.14 Subsection 1018A(1)

omit

if a particular financial product is available for acquisition by persons as retail clients

(whether or not it is also available for acquisition by persons as wholesale clients) by

way of issue, or pursuant to sale offers to which section 1012C applies or will apply,

insert

in an issue situation or sale situation for a carbon unit, an Australian carbon credit unit

or an eligible international emissions unit that is available for acquisition by persons

as retail clients (whether or not it is also available for acquisition by persons as

wholesale clients),

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19.15 Subparagraph 1018A(1)(c)(ii)

omit

to which section 1012C applies or will apply

insert

to which paragraphs 1012C(3)(b) and (4)(c), and subsection 1012C(6), would apply if

section 1012C were applicable in relation to a carbon unit, an Australian carbon credit

unit or an eligible international emissions unit

19.16 Paragraphs 1018A(1)(d) and (e)

substitute

(d) informs the person that the person should consider:

(i) each statement about the carbon unit that is published on the website

of the Clean Energy Regulator as mentioned in section 202 of the

Clean Energy Act 2011 in deciding whether to acquire, or to continue

to hold, the carbon unit; or

(ii) each statement about the Australian carbon credit unit that is

published on the website of the Clean Energy Regulator as mentioned

in section 162 of the Carbon Credits (Carbon Farming Initiative) Act

2011 in deciding whether to acquire, or to continue to hold, the

Australian carbon credit unit; or

(iii) each statement about the eligible international emissions unit that is

published on the website of the Clean Energy Regulator as mentioned

in section 61 of the Australian National Registry of Emissions Units

Act 2011 in deciding whether to acquire, or to continue to hold, the

eligible international emissions unit.

19.17 Subsection 1018A(2)

omit

if a particular financial product, or proposed financial product, is not available for

acquisition by persons as retail clients but it is reasonably likely that the product will

become so available (whether or not it is, or will also become, available for

acquisition by persons as wholesale clients) by way of issue, or pursuant to sale offers

to which section 1012C will apply,

insert

in an issue situation or sale situation for a financial product that is a carbon unit, an

Australian carbon credit unit or an eligible international emissions unit and is not

available for acquisition by persons as retail clients, but is reasonably likely to

become so available (whether or not it is, or will also become, available for

acquisition by persons as wholesale clients),

19.18 Subparagraph 1018A(2)(c)(ii)

omit

to which section 1012C will apply

insert

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100 Corporations Regulations 2001

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to which paragraphs 1012C(3)(b) and (4)(c), and subsection 1012C(6), would apply if

section 1012C were applicable in relation to a carbon unit, an Australian carbon credit

unit or an eligible international emissions unit

19.19 Paragraphs 1018A(2)(d) to (f)

substitute

(d) informs the person that:

(i) a statement about the carbon unit is published on the website of the

Clean Energy Regulator as mentioned in section 202 of the Clean

Energy Act 2011; or

(ii) a statement about the Australian carbon credit unit is published on the

website of the Clean Energy Regulator as mentioned in section 162 of

the Carbon Credits (Carbon Farming Initiative) Act 2011; or

(iii) a statement about the eligible international emissions unit is published

on the website of the Clean Energy Regulator as mentioned in

section 61 of the Australian National Registry of Emissions Units Act

2011; and

(e) informs the person that the person should consider each statement about the

carbon unit, Australian carbon credit unit or eligible international

emissions unit that is published on that website in deciding whether to

acquire, or to continue to hold, the carbon unit, Australian carbon credit

unit or eligible international emissions unit.

19.20 Subsection 1018A(3)

omit

distribute a Product Disclosure Statement

insert

inform a person that the person should consider each statement about the carbon unit,

Australian carbon credit unit or eligible international emissions unit that is published

on the website of the Clean Energy Regulator as mentioned in section 202 of the

Clean Energy Act 2011, section 162 of the Carbon Credits (Carbon Farming

Initiative) Act 2011 or section 61 of the Australian National Registry of Emissions

Units Act 2011

19.21 Subparagraph 1018A(4)(c)(i)

substitute

(i) does not contain information that materially affects affairs of the

issuer, other than information about the carbon unit, Australian carbon

credit unit or eligible international emissions unit that is published:

(A) on the website of the Clean Energy Regulator as mentioned in

section 202 of the Clean Energy Act 2011, section 162 of the

Carbon Credits (Carbon Farming Initiative) Act 2011 or

section 61 of the Australian National Registry of Emissions

Units Act 2011; or

(B) in a disclosure document that has been lodged with ASIC; or

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(C) in an annual report or in a notice or report referred to in

paragraph (a) or (b); and

19.22 Subparagraphs 1018A(4)(d)(i) and (ii)

substitute

(i) information about the carbon unit, Australian carbon credit unit or

eligible international emissions unit that is published:

(A) on the website of the Clean Energy Regulator as mentioned in

section 202 of the Clean Energy Act 2011, section 162 of the

Carbon Credits (Carbon Farming Initiative) Act 2011 or

section 61 of the Australian National Registry of Emissions

Units Act 2011; or

(B) in a disclosure document that has been lodged with ASIC; or

19.23 Paragraph 1020D(b)

substitute

(b) if the acquisition occurs in circumstances in which the party is required by

a provision of this Part to have been informed that the party should

consider each statement about the carbon unit, Australian carbon credit unit

or eligible international emissions unit that is published on the website of

the Clean Energy Regulator as mentioned in section 202 of the Clean

Energy Act 2011, section 162 of the Carbon Credits (Carbon Farming

Initiative) Act 2011 or section 61 of the Australian National Registry of

Emissions Units Act 2011—taken to have notice of any contract, document

or matter not specifically referred to in those statements.

19.24 Paragraph 1020E(7)(b)

omit

the document, advertisement or statement

insert

the statement or advertisement

19.25 Section 1021C, heading

substitute

1021C Offence of failing to refer to statements on Clean Energy Regulator’s

website

19.26 Subparagraph 1021C(1)(a)(i)

substitute

(i) is required by a provision of this Part to inform a person that the

person should consider each statement about a carbon unit, an

Australian carbon credit unit or an eligible international emissions

unit that is published on the website of the Clean Energy Regulator as

mentioned in section 202 of the Clean Energy Act 2011, section 162

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of the Carbon Credits (Carbon Farming Initiative) Act 2011 or

section 61 of the Australian National Registry of Emissions Units Act

2011 (the required statement); or

19.27 Subparagraph 1021C(1)(b)(i)

substitute

(i) if subparagraph (a)(i) applies—inform the person that the person

should consider each required statement; or

19.28 Subparagraph 1021C(3)(a)(i)

substitute

(i) is required by a provision of this Part to inform a person that the

person should consider each statement about a carbon unit, an

Australian carbon credit unit or an eligible international emissions

unit that is published on the website of the Clean Energy Regulator as

mentioned in section 202 of the Clean Energy Act 2011, section 162

of the Carbon Credits (Carbon Farming Initiative) Act 2011 or

section 61 of the Australian National Registry of Emissions Units Act

2011 (the required statement); or

19.29 Subparagraph 1021C(3)(b)(i)

substitute

(i) if subparagraph (a)(i) applies—inform the person that the person

should consider each required statement; or

19.30 Paragraph 1021C(4)(b)

substitute

(b) the representative’s failure to inform the person that the person should

consider each required statement occurred because the representative was

acting in reliance on that information or those instructions; and

19.31 Section 1021G

omit

to give or communicate disclosure documents or statements as and when required by

this Part.

insert

to inform a person that the person should consider each statement about a carbon unit,

an Australian carbon credit unit or an eligible international emissions unit that is

published on the website of the Clean Energy Regulator as mentioned in section 202

of the Clean Energy Act 2011, section 162 of the Carbon Credits (Carbon Farming

Initiative) Act 2011 or section 61 of the Australian National Registry of Emissions

Units Act 2011 as and when required by this Part.

19.32 After paragraph 1022B(1)(ac)

insert

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(ad) a person:

(i) is required to inform another person (the client) that the client should

consider each statement about a carbon unit that is published on the

website of the Clean Energy Regulator as mentioned in section 202 of

the Clean Energy Act 2011; and

(ii) does not inform the client by the time the person is required to do so;

or

(ae) a person:

(i) is required to inform another person (the client) that the client should

consider each statement about an Australian carbon credit unit that is

published on the website of the Clean Energy Regulator as mentioned

in section 162 of the Carbon Credits (Carbon Farming Initiative) Act

2011; and

(ii) does not inform the client by the time the person is required to do so;

or

(af) a person:

(i) is required to inform another person (the client) that the client should

consider each statement about an eligible international emissions unit

that is published on the website of the Clean Energy Regulator as

mentioned in section 61 of the Australian National Registry of

Emissions Units Act 2011; and

(ii) does not inform the client by the time the person is required to do so;

or

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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

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

under Chapter 8

104 Corporations Regulations 2001

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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

(c) the exercise of the option, or the conversion of the security, did not involve

any further offer.

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.

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Chapter 8 Part 2

Corporations Regulations 2001 105

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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

(c) the exercise of the option, or the conversion of the security, did not involve

a further offer.

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 Financial Markets Conduct Act

2013 of New Zealand and the Financial Markets Conduct Regulations 2014

of New Zealand; and

(d) the provider has provided the client any warning statement or details

prescribed under section 1200E in relation to the offer.

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offer or a proposed offer of securities that may become a recognised offer

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

under Chapter 8

106 Corporations Regulations 2001

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(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.

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Schedule 10BA—Modifications of the Act relating to

Short-Form Product Disclosure Statements (regulation 7.9.61AA)

Part 1—Modifications of Part 7.7 of the Act

1.1 Paragraph 949A(2)(c)

after

Part 7.9)

insert

or a Short-Form PDS (see Division 3A of Part 7.9)

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Part 2 Modifications of Part 7.8 of the Act

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Part 2—Modifications of Part 7.8 of the Act

2.1 Paragraphs 992A(3)(c), (d) and (e)

after

Statement

insert

or a Short-Form PDS

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Part 3—Modifications of Part 7.9 of the Act

3.1 After Division 3 of Part 7.9

insert

Division 3A—Short-Form Product Disclosure Statements

1017H Short-Form PDS

Short-Form PDS may be given instead of a Product Disclosure Statement in

most cases

(1) If a regulated person is required or obliged by this Act to give a Product

Disclosure Statement for a financial product (but see subsection (4)) to another

person, the regulated person may instead provide a Short-Form PDS for the

product.

Product Disclosure Statement must be given in certain circumstances

(2) However, if the regulated person is requested by the other person to provide the

Product Disclosure Statement the regulated person must provide the Product

Disclosure Statement.

Responsible person

(3) The responsible person for a Short-Form PDS for a financial product is the

person who is the responsible person for the Product Disclosure Statement for

the product.

Application of subsection (1)

(4) Subsection (1) does not apply to a general insurance product.

1017I Contents of a Short-Form PDS

Contents

(1) The Short-Form PDS for a financial product must contain the following:

(a) a summary of the statements and information referred to in paragraphs

1013D(1)(a), (b), (c), (d), (e), (g) and (i) that were included in a Product

Disclosure Statement for the product;

(b) a statement:

(i) notifying the retail client in relation to the product that the client may

ask for the Product Disclosure Statement for the product; and

(ii) setting out the means by which the client may ask for the Product

Disclosure Statement.

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Extra contents for certain products

(2) If the Short-Form PDS is for a superannuation product or a managed investment

product the Short-Form PDS must also set out in full the information in:

(a) any regulations made for the purposes of paragraph 1013D(4)(c) relating to

the details of fees and costs; and

(b) any regulations made for the purposes of paragraph 1015C(5)(b) that relate

to the presentation, structure and format of information required by

paragraphs 1013D(1)(d) and (e).

Other information may be included in Short-Form PDS

(3) The Short-Form PDS may also:

(a) include other information; and

(b) refer to other information that is set out in the Product Disclosure

Statement or Financial Services Guide for the product.

Reference to identify incorporated information

(4) If under paragraph (3)(b) information is referred to in the Short-Form PDS, the

reference must identify the document or the part of the document that contains

the information.

Incorporated document forms part of Short-Form PDS

(5) The document or part referred to in subsection (4) is taken to be included in the

Short-Form PDS.

Rule as to statements in a Short-Form PDS

(6) If a Product Disclosure Statement for a financial product may include a statement

made by a person (see section 1013K), the statement may also be included in the

Short-Form PDS for the product.

1017J Title of Short-Form Product Disclosure Statement

(1) The title “Short-Form Product Disclosure Statement” must be used on the cover

of, or at or near the front of, a Short-Form PDS.

(2) In any other part of a Short-Form PDS, “Short-Form Product Disclosure

Statement” may be abbreviated to “Short-Form PDS”.

1017K References in sections to Product Disclosure Statement to include

references to Short-Form PDS

The following provisions apply to a Short-Form PDS and so apply as if a

reference to a Product Disclosure Statement in the provisions included a

reference to a Short-Form PDS:

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(a) sections 942DA, 947E, 1012F, 1012G, 1012H, 1012J, 1013A, 1013G,

1013H, 1013I, 1013L 1013M, 1016A, 1016B, 1016C, 1016D, 1016E and

1017A and subsections 1013C(3) and 1013C(4) to (7);

(b) any regulations made under those sections or subsections;

(c) any regulations that modify those sections or subsections.

Division 3B—Supplementary Short-Form Product Disclosure

Statements

1017L What a Supplementary Short-Form Product Disclosure Statement is

A Supplementary Short-Form PDS is a document by which a person who has

prepared a Short-Form PDS can:

(a) correct a misleading or deceptive statement in the Short-Form PDS; or

(b) correct an omission from the Short-Form PDS of information it is required

to contain; or

(c) update, or add to, the information contained in the Short-Form PDS; or

(d) change a statement of a kind referred to in paragraph 1016E(1)(a) or (b) (as

applied by section 1017K).

1017M Title of Supplementary Short-Form Product Disclosure Statement

(1) The title “Supplementary Short-Form Product Disclosure Statement” must be

used on the cover of, or at or near the front of, a Supplementary Short-Form

PDS.

(2) In any other part of a Supplementary Short-Form PDS, “Supplementary

Short-Form Product Disclosure Statement” may be abbreviated to

“Supplementary Short-Form PDS”.

1017N Form of Supplementary Short-Form Product Disclosure Statement

At the beginning of a Supplementary Short-Form PDS there must be:

(a) a statement that it is a Supplementary Short-Form PDS; and

(b) an identification of the Short-Form PDS that it supplements; and

(c) a statement that it is to be read together with that Short-Form PDS and any

other specified Supplementary Short-Form PDS.

1017O Effect of giving person a Supplementary Short-Form Product Disclosure

Statement

If:

(a) a person is given a Short-Form PDS; and

(b) at the same time, or later, they are given a Supplementary Short-Form PDS

that supplements the Short-Form PDS;

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Part 3 Modifications of Part 7.9 of the Act

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the Short-Form PDS is taken, from when the Supplementary Short-Form PDS is

given to the person, to include the information and statements contained in the

Supplementary Short-Form PDS.

1017P Situation in which only a Supplementary Short-Form Product Disclosure

Statement need be given

If:

(a) apart from this section, a person would be required to give another person

(the client) a Product Disclosure Statement (the new PDS) relating to a

financial product; and

(b) the client has, because of some previous conduct, already received a

Short-Form PDS (the earlier Short-Form PDS) relating to the financial

product; and

(c) the earlier Short-Form PDS contains summaries of some, but not all, of the

information that the new PDS is required to contain (see

paragraph 1017I(1)(a));

the person may, instead of giving the client the new PDS, give the client a

Supplementary Short-Form PDS that contains summaries of the additional

information.

1017Q Application of other provisions in relation to Supplementary Short-Form

Product Disclosure Statements

The following provisions apply in relation to a Supplementary Short-Form PDS

in the same way as those provisions apply to a Product Disclosure Statement:

(a) sections 1013A, 1013G, 1013H, 1013K and subsections 1013C(3) and

1013C(4) to (7);

(b) any regulations made under those sections or subsections;

(c) any regulations that modify those sections or subsections.

3.2 Section 1015A

substitute

1015A Subdivision applies to certain Disclosure Statements

(1) Subject to subsection (2):

(a) this Subdivision applies to:

(i) a Product Disclosure Statement; or

(ii) a Short-Form PDS; or

(iii) a Supplementary PDS; or

(iv) a Supplementary Short-Form PDS; and

(b) each of those kinds of documents is referred to in this Subdivision as a

Statement.

(2) However:

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(a) section 1015B does not apply to a Short-Form PDS or a Supplementary

Short-Form PDS; and

(b) in that section, Statement does not include a Short-Form PDS or a

Supplementary Short-Form PDS.

3.3 Subsection 1015B(1) (after the note)

insert

Note 2: Subsection 1015A(2) provides that Statement in this section does not include a

Short-Form PDS or a Supplementary Short-Form PDS.

3.4 Paragraph 1018A(1)(e)

after

Statement

insert

or Short-Form PDS, if available,

3.5 Paragraph 1018A(2)(f)

after

Statement

insert

or Short-Form PDS, if available,

3.6 Subsection 1018A(3)

after

Statement

insert

or Short-Form PDS

3.7 Subparagraph 1018A(4)(d)(i)

after

Statement

insert

or Short-Form PDS

3.8 Paragraph 1020D(b)

omit

or Supplementary Product Disclosure Statement

insert

, Supplementary Product Disclosure Statement, Short-Form PDS or Supplementary

Short-Form PDS

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3.9 After paragraph 1021B(1)(b) (definition of defective)

insert

(ba) if it is a Short-Form PDS—there is an omission from the Short-Form PDS

of material required by section 1017I; or

3.10 After paragraph 1021B(1)(c) (definition of defective)

insert

(ca) if it is a Supplementary Short-Form PDS that is given for the purposes of

section 1017P—there is an omission from the Short-Form PDS of material

required by that section; or

3.11 Subsection 1021B(1), definition of disclosure document or statement, after paragraph (b)

insert

(ba) a Short-Form PDS; or

(bb) a Supplementary Short-Form PDS; or

3.12 After subsection 1021C(5)

insert

(6) If a person does not give a Product Disclosure Statement for a financial product

because the person has given a Short-Form PDS for the product, the person is

taken not to contravene this section.

3.13 Paragraph 1021H(1)(a)

omit

or a Supplementary Product Disclosure Statement

insert

, a Supplementary Product Disclosure Statement, a Short-Form PDS or a

Supplementary Short-Form PDS

3.14 Subparagraph 1021H(1)(b)(i)

after

Product Disclosure Statement

insert

or Short-Form PDS

3.15 Subparagraph 1021H(1)(b)(ii)

omit

; and

insert

; or

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3.16 After subparagraph 1021H(1)(b)(ii)

insert

(iii) if it is a Supplementary Short-Form PDS—section 1013G, 1017M or

1017N; and

3.17 After subparagraph 1021J(1)(c)(ii)

insert

(iia) if it is a Short-Form PDS—a direction not to distribute the Short-Form

PDS unless it is accompanied by a Supplementary Short-Form PDS

that corrects the deficiency;

3.18 After subparagraph 1021J(1)(c)(iii)

insert

(iiia) if it is a Short-Form PDS or a Supplementary Short-Form PDS—a

direction not to distribute the Short-Form PDS or Supplementary

Short-Form PDS without first altering it in a way that is specified in

the direction, being a way that corrects the deficiency and that

complies with section 1015E.

3.19 Paragraph 1021K(1)(a)

omit

or a Supplementary Product Disclosure Statement

insert

, a Supplementary Product Disclosure Statement, a Short-Form PDS or a

Supplementary Short-Form PDS (the disclosure statement)

3.20 Paragraph 1021K(1)(b)

omit

Product Disclosure Statement or Supplementary Product Disclosure Statement

insert

disclosure statement

3.21 Subparagraphs 1021K(1)(d)(i), (ii) and (iii)

omit

Product Disclosure Statement or Supplementary Product Disclosure Statement

insert

disclosure statement

3.22 Paragraph 1021L(1)(a)

omit

or a Supplementary Product Disclosure Statement

insert

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, a Supplementary Product Disclosure Statement, a Short-Form PDS or a

Supplementary Short-Form PDS

3.23 Paragraph 1021L(2)(a)

omit

or a Supplementary Product Disclosure Statement

insert

, a Supplementary Product Disclosure Statement, a Short-Form PDS or a

Supplementary Short-Form PDS (the disclosure statement)

3.24 Subparagraph 1021L(2)(b)(iv)

omit

Product Disclosure Statement or Supplementary Product Disclosure Statement

insert

disclosure statement

3.25 Subparagraphs 1021M(1)(a)(i), (ii), (iii) and (iv)

omit

or a Supplementary Product Disclosure Statement

insert

, a Supplementary Product Disclosure Statement, a Short-Form PDS or a

Supplementary Short-Form PDS

3.26 Subparagraphs 1021M(3)(a)(i), (ii), (iii) and (iv)

omit

or a Supplementary Product Disclosure Statement

insert

, a Supplementary Product Disclosure Statement, a Short-Form PDS or a

Supplementary Short-Form PDS

3.27 After paragraph 1022A(1)(b) (definition of defective)

insert

(ba) if it is a Short-Form PDS—there is an omission from the Short-Form PDS

of material required by section 1017I; or

3.28 After paragraph 1022A(1)(c) (definition of defective)

insert

(ca) if it is a Supplementary Short-Form PDS that is given for the purposes of

section 1017P—there is an omission from the Short-Form PDS of material

required by that section; or

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3.29 Subsection 1022A(1), definition of disclosure document or statement, after paragraph (b)

insert

(ba) a Short-Form PDS; or

(bb) a Supplementary Short-Form PDS; or

3.30 Subparagraph 1022B(1)(a)(i)

omit

or a Supplementary Product Disclosure Statement

insert

, a Supplementary Product Disclosure Statement, a Short-Form PDS or a

Supplementary Short-Form PDS

3.31 Subparagraph 1022B(1)(c)(ii)

omit

or a Supplementary Product Disclosure Statement

insert

, a Supplementary Product Disclosure Statement, a Short-Form PDS or a

Supplementary Short-Form PDS

3.32 Subparagraph 1022B(1)(d)(i)

omit

or a Supplementary Product Disclosure Statement

insert

, a Supplementary Product Disclosure Statement, a Short-Form PDS or a

Supplementary Short-Form PDS

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Schedule 10C Form and content of Product Disclosure Statement—margin loan

Clause 1

118 Corporations Regulations 2001

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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

(c) if it is printed on DL pages—12 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.

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(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

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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:

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(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

(C) how the buffer (if any) for the margin loan operates; 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

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(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;

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(b) a statement about whether a default interest rate will be charged for the

margin loan;

(c) details of any fee or cost to be charged by the provider of the margin loan,

unless the fee is a minor fee;

(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.

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Schedule 10D Form and content of Product Disclosure Statement—superannuation product to which

Subdivision 4.2B of Division 4 of Part 7.9 applies

Clause 1

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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

(c) if it is printed on DL pages—24 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.

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(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])

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

(a) describe, in the form of a summary, the superannuation entity and the

MySuper products and other investment options offered by the entity; and

(b) include a statement of where, on the entity’s website, the member can find:

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(i) the product dashboard for each MySuper product and choice product

in the entity; and

(ii) each trustee and executive remuneration disclosure for the entity, and

any other document that must be disclosed for the entity under the SIS

Regulations; and

(c) a statement describing the entity’s process for transitioning each member

whose interest includes an accrued default amount from an existing default

option to a MySuper product by 1 July 2017.

(2) Paragraph (1)(c) applies until the earlier of:

(a) 1 July 2017; and

(b) the day on which the entity has attributed each accrued default amount in

the entity to a MySuper product.

Note: Putting the information mentioned in paragraph (1)(b) onto the superannuation fund’s

website does not amount to adding the information to the Product Disclosure

Statement.

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

(c) there are limitations on contributions to, and withdrawals from,

superannuation; and

(d) tax savings are provided by the Government; and

(e) most people have the right to choose into which superannuation entity 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.

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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;

(c) assets with the highest long-term returns may also carry the highest level of

short-term risk.

(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;

(c) returns are not guaranteed, and persons may lose some of their money;

(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 MySuper products and 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

(c) the person’s investment timeframe;

when choosing a MySuper product or an investment option in which to invest.

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(3) For at least one MySuper product or investment option, section 5 must:

(a) state the name of the MySuper product or investment 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 MySuper product or investment option

invests, and set out, in the form of a range or otherwise, the strategic asset

allocation of the asset classes; and

(c) describe the investment return objective of the MySuper product or

investment option; and

(d) state the minimum suggested time frame for holding the MySuper product

or investment option; and

(e) describe, in the form of a summary, the risk level of the MySuper product

or investment option.

(4) If the superannuation product includes a generic MySuper product, section 5

must give the information mentioned in subclause (3) for the generic MySuper

product, whether or not section 5 gives that information for another MySuper

product or investment option.

(5) If the superannuation product does not include a generic MySuper product, and

has a balanced investment option (within the meaning given by clause 101 of

Schedule 10), section 5 must give the information mentioned in subclause (3) for

the balanced investment option under which most assets of the superannuation

entity are invested, whether or not section 5 gives that information for any

MySuper product or other investment option.

(6) If the superannuation product does not include a generic MySuper product or a

balanced investment option (within the meaning given by clause 101 of

Schedule 10), section 5 must give the information mentioned in subclause (3) for

the investment option under which most assets of the superannuation entity are

invested, whether or not section 5 gives that information for any MySuper

product or other investment option.

(8) Section 5:

(a) must make provision for each MySuper product and investment option

which is not presented in section 5 in accordance with subclause (3), (4),

(5) or (6); and

(b) may make provision for the MySuper product or investment 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) whether the superannuation product’s MySuper products and investment

options may be changed and, if so, how; and

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(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 MySuper products or investment options, by applying,

adopting or incorporating a matter in writing.

8 Contents of section 6 (Fees and costs)

(1) For each MySuper product or investment option within a 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 MySuper product or investment option; and

(b) the fees and costs that are charged in relation to the MySuper product or

investment 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 MySuper product or other

investment option that is presented in section 5 in detail in accordance with

subclause 7(3), using the following templates:

[Name of superannuation product]

Type of fee Amount How and when paid

Investment fee

Administration fee

Buy-sell spread

Switching fee

Exit fee

Advice fees

relating to all members

investing in a particular

MySuper product or investment

option

Other fees and costs¹

Indirect cost ratio

1. [If there are other fees and costs, such as activity fees, advice fees for personal advice or insurance fees, include a cross-reference to the “Additional Explanation of Fees and Costs”.]

(4) The template is to be completed in accordance with Division 3 of Schedule 10

(including definitions applicable to that Division), except that:

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(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

(c) the example in subclause 208(1) is to be treated as stating:

“(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.

(6A) Section 6 must:

(a) apply, adopt or incorporate the definitions in relation to fees mentioned in

section 29V of the SIS Act; and

(b) include the address of a link to the definitions maintained on a website.

(7) Section 6 must give a worked example for each MySuper product or investment

option described in section 5.

(7A) The example given must be in accordance with Divisions 5 and 6 of Schedule 10

(including the definitions applicable to those Divisions).

(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

(c) if applicable:

(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 MySuper products and

investment options in accordance with Schedule 10, and may do so by

applying, adopting or incorporating a matter in writing; and

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(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

(c) include a statement to the effect that there are costs associated with

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

(c) state whether a person can:

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(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;

(c) eligibility for, and the cancellation of, the insurance cover;

(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

(c) any other significant matter in relation to insurance cover;

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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

(c) explain how to make a complaint (by means that include the provision of

relevant contact details).

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.

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Schedule 10E Form and content of Product Disclosure Statement—simple managed investment

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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

(c) if it is printed on DL pages—24 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

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(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.

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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) any feature or benefit of the simple managed investment scheme; or

(b) other features and benefits of the simple managed investment scheme; or

(c) 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:

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(a) all investments carry risk;

(b) different strategies may carry different levels of risk, depending on the

assets that make up the strategy;

(c) assets with the highest long-term returns may also carry the highest level of

short-term risk.

(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;

(c) returns are not guaranteed, and members may lose some of their money;

(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

(c) the person’s investment timeframe;

when choosing an option in which to invest.

New simple managed investment scheme

(3) If the simple managed investment scheme has never previously been offered to

investors, and does not offer any investment option mentioned in subclauses (4)

and (5) about which section 5 can give information, section 5 must give the

following information for the investment option that the responsible entity

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reasonably believes has the least volatile underlying assets (whether or not

section 5 gives that information for any other investment option):

(a) the name of the option and a short description of it, including the type of

investors for whom it is intended to be suitable;

(b) a list of the asset classes in which the option invests, setting out the

strategic asset allocation of the asset classes in the form of a range or

otherwise;

(c) a description of the investment return objective of the option;

(d) the minimum suggested time frame for holding the investment;

(e) a description, in the form of a summary, of the risk level of the option.

Balanced investment 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

following information for the balanced investment option (whether or not

section 5 gives that information for any other investment option):

(a) the name of the option and a short description of it, including the type of

investors for whom it is intended to be suitable;

(b) a list of the asset classes in which the option invests, setting out the

strategic asset allocation of the asset classes in the form of a range or

otherwise;

(c) a description of the investment return objective of the option;

(d) the minimum suggested time frame for holding the investment;

(e) a description, in the form of a summary, of the risk level of the option.

No balanced investment option

(5) If the simple managed investment scheme does not have a balanced investment

option (within the meaning given by item 101 of Schedule 10), section 5 must

give the following information 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):

(a) the name of the option and a short description of it, including the type of

investors for whom it is intended to be suitable;

(b) a list of the asset classes in which the option invests, setting out the

strategic asset allocation of the asset classes in the form of a range or

otherwise;

(c) a description of the investment return objective of the option;

(d) the minimum suggested time frame for holding the investment;

(e) a description, in the form of a summary, of the risk level of the 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:

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(i) includes the information mentioned in subclause (3), (4) or (5); 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

(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 simple managed investment scheme; 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

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scheme

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[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

(c) the example in subclause 208(1) is to be treated as stating:

“(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:

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(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:

(a) taxation matters relating to the registered managed investment scheme; or

(b) 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

(c) explain how to make a complaint (by means that include the provision of

relevant contact details).

(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.

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Schedule 11 Persons who are not covered by section 1433 of the Act

142 Corporations Regulations 2001

Compilation No. 132 Compilation date: 2/7/17 Registered: 13/7/17

Schedule 11—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 a Chapter 5 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;

(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

10 years after the conduct first

occurred

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

5 years after the cancellation,

suspension or revocation

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Persons who are not covered by section 1433 of the Act Schedule 11