Corporations Regulations 2001
Authorised Version F2019C00362 registered 18/04/2019
Statutory Rules No. 193, 2001
made under the
Corporations Act 2001
Compilation No. 147
Compilation date: 6 April 2019
Includes amendments up to: F2019L00539
Registered: 18 April 2019
This compilation is in 7 volumes
Volume 1: regulations 1.0.01–6D.5.03
Volume 2: regulations 7.1.02–7.6.08E
Volume 3: regulations 7.7.01–8A.7.20
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
Prepared by the Office of Parliamentary Counsel, Canberra
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 6 April 2019 (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If a provision of the compiled law has been repealed in accordance with a provision of the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.
Authorised Version F2019C00362 registered 18/04/2019
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Contents
Schedule 3—Specified offices 1
Schedule 4—Prescribed amounts 3
Schedule 5C—Conduct of auditor—relevant
relationships 6 1 Money owed—debt........................................................................... 6
2 Money owed—deposit account......................................................... 6
3 Public company auditor (annual appointments at AGMs to
fill vacancies) .................................................................................... 7
Schedule 6—Availability of names 8
Part 1—Rules for ascertaining whether names are identical 8
Part 2—Names unacceptable for registration 9
Part 3—Restricted words and phrases 11
Part 4—Consent required to use restricted words and phrases 12
Part 5—Names relating to financial institutions for use of
which consent is required 13
Schedule 7—Exemptions from requirements to set out
certain corporate particulars 14 7001 Definitions for Schedule 7 .............................................................. 14
7002 Exemption for certain IATA documents ......................................... 14
7003 Exemption for bills of lading and sea waybills ............................... 14
7004 Exemptions—quotation of ACNs and ARBNs ............................... 15
Schedule 7A—Content of annual transparency report 16
Part 1—Interpretation for Schedule 7A 16 7A101 Interpretation................................................................................... 16
Part 2—Prescribed information for audit firm or authorised
audit company 17
Part 3—Prescribed information for individual auditor 18
Schedule 8—Schemes of arrangement under Part 5.1
of the Act 19
Chapter 5—External administration 19
Part 1—Interpretation and application 19
Part 2—Prescribed information relating to proposed
compromise or arrangement with creditors or class
of creditors 20
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Part 3—Prescribed information relating to proposed
compromise or arrangement with members or a
class of members 21
Part 4—Prescribed information relating to proposed
compromise or arrangement with members or class
of members for transfer to a trustee 25
Schedule 8A—Deed of company arrangement—
prescribed provisions 26 1 Administrator deemed agent of company ....................................... 26
2 Powers of administrator .................................................................. 26
3 Termination of deed where arrangement fails................................. 28
4 Priority ............................................................................................ 28
5 Discharge of debts........................................................................... 28
6 Claims extinguished........................................................................ 28
7 Bar to creditors’ claims ................................................................... 28
8 Making claims................................................................................. 29
10 Lodging of accounts........................................................................ 29
11 Committee of inspection ................................................................. 29
12 Termination of deed where arrangement achieves purpose ............ 30
Schedule 8AA—Trustee companies 31
Schedule 8AB—Prescribed State and Territory
provisions for paragraph 601RAE (4)(a)
of the Act 32
Schedule 8AC—Prescribed State and Territory laws
and provisions for
paragraph 601RAE(4)(b) of the Act—
estate administration 33
Schedule 8AD—Prescribed State and Territory laws
and provisions for
paragraph 601RAE(4)(b) of the Act 34
Schedule 8AE—Relevant State and Territory
provisions 36
Schedule 8B—Option contract—prescribed indexes 37
Schedule 8C—Modifications of Part 7.5 of the Act—
compensation regimes 39
Schedule 9—Companies authorised to effect transfers
under Part 7.11 of the Act 43
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Schedule 10—Disclosure of fees and other costs 44
Part 1—Interpretation 44 101 Definitions ...................................................................................... 44
102 Management costs........................................................................... 46
103 Transactional and operational costs ................................................ 47
104 Indirect cost ratio ............................................................................ 47
Part 2—Fees and Costs Template, example of annual fees and
costs and Consumer Advisory Warning for Product
Disclosure Statements 48
Division 1—The fees and costs template for superannuation
products 48
201 Template for superannuation products ............................................ 48
Division 2—The fees and costs template for collective investment
products 50
202 Template for a multiple fee structure—collective investment
products........................................................................................... 50
202A Template for single fee structure—collective investment
products........................................................................................... 51
Division 3—How to fill in the template 53
203 The preamble .................................................................................. 53
204 Column 2—presentation of amounts............................................... 53
205 Column 2—include information for each MySuper product
or investment option ....................................................................... 53
206 Presentation of multiple fee payment options ................................. 54
207 Column 3—how and when fees and costs are payable ................... 54
208 Other material to be included in the template ................................. 54
Division 4—Additional explanation of fees and costs 55
209 Matters to be included as additional explanation of fees and
costs ................................................................................................ 55
Division 4A—Defined fees for superannuation products 57
209A Defined fees for superannuation products....................................... 57
Division 5—Example of annual fees and costs 59
210 Example of annual fees and costs ................................................... 59
211 Superannuation products—Example of annual fees and costs
for a MySuper product .................................................................... 59
212 Collective investment products—Example of annual fees and
costs for a balanced investment option ........................................... 59
213 Defined benefit funds...................................................................... 60
Division 6—How to fill in the example of annual fees and costs 61
214 Fees and costs must be ongoing amounts........................................ 61
214A Example of annual fees and costs for a MySuper product—
lifecycle MySuper product.............................................................. 61
215 Minimum entry balance rule ........................................................... 61
216 Exit fees .......................................................................................... 61
217 Contribution fees............................................................................. 61
218 Administration fees and investment fees for a
superannuation product ................................................................... 62
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218A Management costs for a collective investment product................... 62
219 Withdrawal fees and exit fees ......................................................... 63
220 If there is no generic MySuper product or balanced
investment option............................................................................ 63
Division 7—Consumer Advisory Warning 64
221 Consumer advisory warning ........................................................... 64
222 Where to place the Consumer Advisory Warning........................... 64
Part 3—Fees and costs in periodic statements 65
Division 1—Other Management Costs 65
301 Indirect costs related to investment and administration of
accounts .......................................................................................... 65
Division 2—Total fees 66
302 Total of fees in the periodic statement ............................................ 66
Division 3—Additional Explanation of Fees and Costs 67
303 Matters to be included as additional explanation of fees and
costs ................................................................................................ 67
Schedule 10A—Modifications of Part 7.9 of the Act 68
Part 1—Modifications relating to sub-plans 68
Part 2—Modifications relating to Product Disclosure
Statements for RSA products 69
Part 3—Modifications relating to insurance options under
contract associated with superannuation interest 70
Part 5A—Modifications for margin loan 71
Part 5B—Modifications for superannuation products to which
Subdivision 4.2B of Division 4 of Part 7.9 applies 73
Part 5C—Modifications for simple managed investment
scheme 75
Part 6—Modifications relating to application forms and
Product Disclosure Statements for standard
employer-sponsor arrangements and successor funds 77
Part 6A—Modifications relating to MySuper measures 78
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 79
Part 8—Modifications relating to periodic statements for RSA
providers 81
Part 9—Modifications relating to periodic statements for
superannuation entities and RSA providers 83
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Part 10—Modifications relating to ongoing disclosure of
material changes and significant events in relation to
superannuation products and RSAs 84
Part 11—Modifications relating to charges for information
requested 86
Part 12—Modifications relating to information when member
leaves a fund 87
Part 13—Modifications relating to exceptions to exit reporting
period provisions 88
Part 14—Modifications relating to obligation to give
information about financial products 89
Part 15—Modifications for confirmation of transactions 91
Part 16—Modifications relating to reporting periods 92
Part 17—Modifications relating to application forms for
specified superannuation products 93
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 94
Part 19—Modifications for carbon units, Australian carbon
credit units and eligible international emissions units 95
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 106
Part 1—Modification of Part 6D.2 of the Act—disclosure to
investors not required for recognised offer under
Chapter 8 106
Part 2—Modification of Part 7.9 of the Act—disclosure to
investors not required for recognised offer under
Chapter 8 107
Schedule 10BA—Modifications of the Act relating to
Short-Form Product Disclosure
Statements 109
Part 1—Modifications of Part 7.7 of the Act 109
Part 2—Modifications of Part 7.8 of the Act 110
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Part 3—Modifications of Part 7.9 of the Act 111
Schedule 10C—Form and content of Product
Disclosure Statement—margin loan 120 1 Length and font size for Product Disclosure Statement for
margin loan ................................................................................... 120
2 Minimum content of Product Disclosure Statement for
margin loan ................................................................................... 120
3 Contents of section 1 (About [name of provider of the
margin loan] and [name of margin loan product]) ........................ 121
4 Contents of section 2 (Benefits of [name of margin loan
product]) ....................................................................................... 122
5 Contents of section 3 (How [name of margin loan product]
works) ........................................................................................... 122
6 Contents of section 4 (What is a margin call?).............................. 123
7 Contents of section 5 (The risk of losing money) ......................... 124
8 Contents of section 6 (The costs) .................................................. 124
9 Contents of section 7 (How to apply)............................................ 125
Schedule 10D—Form and content of Product
Disclosure Statement—superannuation
product to which Subdivision 4.2B of
Division 4 of Part 7.9 applies 126 1 Length and font size for Product Disclosure Statement for
superannuation product ................................................................. 126
2 Minimum content of Product Disclosure Statement for
superannuation product ................................................................. 126
3 Contents of section 1 (About [name of superannuation
product]) ....................................................................................... 127
4 Contents of section 2 (How super works) ..................................... 128
5 Contents of section 3 (Benefits of investing with [name of
superannuation product]) .............................................................. 128
6 Contents of section 4 (Risks of super) .......................................... 129
7 Contents of section 5 (How we invest your money) ..................... 129
8 Contents of section 6 (Fees and costs) .......................................... 131
9 Contents of section 7 (How super is taxed)................................... 133
10 Contents of section 8 (Insurance in your super) ............................ 133
11 Contents of section 9 (How to open an account)........................... 135
Schedule 10E—Form and content of Product
Disclosure Statement—simple managed
investment scheme 136 1 Length and font size for Product Disclosure Statement for
simple managed investment scheme ............................................. 136
2 Minimum content of Product Disclosure Statement for
simple managed investment scheme ............................................. 136
3 Contents of section 1 (About [name of responsible entity]).......... 137
4 Contents of section 2 (How [name of simple managed
investment scheme] works)........................................................... 138
5 Contents of section 3 (Benefits of investing in [name of
simple managed investment scheme])........................................... 138
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6 Contents of section 4 (Risks of managed investment
schemes) ....................................................................................... 138
7 Contents of section 5 (How we invest your money) ..................... 139
8 Contents of section 6 (Fees and costs) .......................................... 141
9 Contents of section 7 (How managed investment schemes
are taxed) ...................................................................................... 143
10 Contents of section 8 (How to apply)............................................ 143
Schedule 11—Persons who are not covered by
section 1433 of the Act 144
Schedule 12—ASIC transitional standards 146
Schedule 13—Transition to Part 3 of the Insolvency
Practice Schedule (Corporations) 147
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Specified offices Schedule 3
Schedule 3—Specified offices (regulation 6.2.02)
Column 1 Column 2 Column 3 Column 4
Item Office Law Jurisdiction
Treasurer Commonwealth
Trustee Parts IV, X and XI of the Commonwealth
Bankruptcy Act 1966
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
Treasurer Western Australia
Commissioner for Western Australia
Corporate Affairs
Public Trustee Public Trustee Act 1941 Western Australia
Master of the Supreme Supreme Court Act 1935 Western Australia
Court
Registrar of the Supreme Supreme Court Act 1935 Western Australia
Court
13 Treasurer Victoria
14 Commissioner for Victoria
Corporate Affairs
15 Public Trustee Public Trustee Act 1958 Victoria
16 Master of the Supreme Supreme Court Act 1958 Victoria
Court
17 Treasurer New South Wales
Public Trustee Public Trustee Act 1913 New South Wales
19 Master Division 1 of Part VIII of New South Wales
the Supreme Court Act
1970
Supervisor of Loan Fund Loan Fund Companies Act New South Wales
Companies 1976
Protective Commissioner Mental Health Act 1958 New South Wales
22 Treasurer Queensland
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29
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Schedule 3 Specified offices
Column 1 Column 2 Column 3 Column 4
Item Office Law Jurisdiction
Commissioner for Queensland
Corporate Affairs
Public Trustee Public Trustee Act 1978 Queensland
25 Registrar Supreme Court Acts Queensland
1861-1980
26 Treasurer South Australia
Curator of Prisoners Criminal Law South Australia
Property Consolidation Act 1935-80
Public Trustee Administration and Probate South Australia
Act 1919-1980
Master or accountant Supreme Court Act South Australia
1935-1980
30 Administrator Chapter XLIX of the Tasmania
Criminal Code
31 Treasurer Tasmania
32 Commissioner for Tasmania
Corporate Affairs
33 Public Trustee Public Trustee Office Act Tasmania
1930
34 Registrar of the Supreme Supreme Court Act 1959 Tasmania
Court
35 Treasurer Australian Capital
Territory
36 Public Trustee Administration and Probate Australian Capital
Ordinance 1929 and the Territory
Public Trustee Act 1985
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
Public Trustee Public Trustee Act 1979 Northern Territory
Master of the Supreme Northern Territory
Court
Commissioner for Companies Northern Territory
Corporate Affairs (Administration) Act 1986
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Prescribed amounts Schedule 4
Schedule 4—Prescribed amounts (regulation 1.1.01)
Column 1 Column 2 Column 3
Item Matter Amount ($)
Inspection of registers for the purposes of:
(a) subsection 173(2) or subsection 672DA (7):
(i) if a register is not kept on a computer—for each
inspection
(ii) if a register is kept on a computer—for each
inspection
5.00
a reasonable amount
that does not exceed
the marginal cost to
the company of
providing an
inspection
1AA Supply of copies for subsection 173(3) 250.00
In addition, if information is provided about 5,000 or more
members:
(a) for the 5,000th member and for each additional member
up to and including the 19,999th member 0.05
(b) for the 20,000th member and for each additional member 0.01
1A Inspection of registers or records for:
(a) subsection 271(3)
(b) subsection 668A(3);
for each inspection 5.00
2 Supply under section 139 by a company to a member of the
company of a copy of the company’s constitution
10.00
3 Supply of copies for subsection 672DA (8):
(a) if a register is not kept on a computer—for each page, or
part of a page, not exceeding international sheet size A4
of the copy supplied or, at the option of the supplier, for
each 100 words or part of 100 words
0.50
(b) if a register is kept on a computer—for each inspection a reasonable amount
that does not exceed
the marginal cost to
the company of
providing a copy
3A Supply of copies for:
(a) subsection 246G (3)
(b) subsection 251B (4)
(ba) subsection 253N (4)
(c) subsection 271(4)
(d) subsection 812(3)
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Schedule 4 Prescribed amounts
Column 1 Column 2 Column 3
Item Matter Amount ($)
(e) paragraph 1178(3)(a);
for each page, or part of a page, not exceeding international 0.50
sheet size A4 of the copy supplied or, at the option of the
supplier, for each 100 words or part of 100 words
4 Payment for each name and address provided under 0.10
subsection 641(5)
5 For compliance with a direction under section 672A 5.00
Replacement of lost or destroyed certificate for 10.00
paragraph 1070D(4)(a)
Fee for supply by a responsible entity of a copy of the 10.00
constitution of a registered scheme under
subsection 601GC(4)
7A Costs of the operator in providing a copy of the consolidated 10.00
constitution of a notified foreign passport fund under
section 1213J
7B Costs of the operator in providing a copy of the register of
members of a notified foreign passport fund under
section 1213K
250.00
In addition, if information is provided about 5,000 or more
members:
(a) for the 5,000th member and for each additional member
up to and including the 19,999th member 0.05
(b) for the 20,000th member and for each additional member 0.01
8 Inspection of register for subsection 919E(3):
(a) if the register is not kept on a computer—for each 12.50 inspection
(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 No fee member of the declared professional body
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
(b) if a register is kept on a computer—for each copy or
extract
1.25
a reasonable amount
that does not exceed
the marginal cost to
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Prescribed amounts Schedule 4
Column 1 Column 2 Column 3
Item Matter Amount ($)
the declared
professional body of
providing a copy or
extract
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Schedule 5C Conduct of auditor—relevant relationships
Clause 1
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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Conduct of auditor—relevant relationships Schedule 5C
Clause 3
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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Schedule 6 Availability of names
Part 1 Rules for ascertaining whether names are identical
Schedule 6—Availability of names (regulations 2B.6.01, 2B.6.02, 5B.3.01, 5B.3.02 and 8A.4.10)
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) or for subparagraph 1213B(5)(a)(i), (ii), (iii) or (iv) 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 Column 2 Column 3
Item Word or expression Alternative
1 Australian Aust
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
Australian Company Number ACN
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Availability of names Schedule 6
Names unacceptable for registration Part 2
Part 2—Names unacceptable for registration
6203
For paragraphs 147(1)(c) and 601DC(1)(c) and for subparagraph 1213B(5)(a)(v)
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 the following:
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Schedule 6 Availability of names
Part 2 Names unacceptable for registration
(a) item 6309, 6312 or 6318 of Part 3 if a word or phrase 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;
(b) item 6314 of Part 3 if the word in that item 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;
(c) item 6316AA of Part 3 if the phrase in that item is included in the name of
a foreign passport fund in relation to which a notice of intention has been
lodged under section 1213 of the Act (which deals with notices of intention
to offer interests in a foreign passport fund).
6205
Paragraph 6203(c) does not apply if ASIC is satisfied that the word is used in a
geographical context.
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Availability of names Schedule 6
Restricted words and phrases Part 3
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
6316AA passport fund
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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Schedule 6 Availability of names
Part 4 Consent required to use restricted words and phrases
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 Minister for Defence
Lion and Sun
6405 United Nations Minister for Foreign Affairs
6406 University Minister for Education, Training and
Youth Affairs
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Availability of names Schedule 6
Names relating to financial institutions for use of which consent is required Part 5
Part 5—Names relating to financial institutions for use of
which consent is required
Public authority, instrumentality or
Item Letters, word or expression 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 APRA
a financial business)
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Schedule 7 Exemptions from requirements to set out certain corporate particulars
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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(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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Schedule 7A Content of annual transparency report
Part 1 Interpretation for Schedule 7A
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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Content of annual transparency report Schedule 7A
Prescribed information for audit firm or authorised audit company Part 2
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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Schedule 7A Content of annual transparency report
Part 3 Prescribed information for individual auditor
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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Schemes of arrangement under Part 5.1 of the Act Schedule 8
External administration Chapter 5
Interpretation and application Part 1
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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Schedule 8 Schemes of arrangement under Part 5.1 of the Act
Chapter 5 External administration
Part 2 Prescribed information relating to proposed compromise or arrangement with creditors or class
of creditors
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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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
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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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
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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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
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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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
(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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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 class of
members for transfer to a trustee Part 4
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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Schedule 8A Deed of company arrangement—prescribed provisions
Clause 1
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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Clause 2
(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
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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2
3
4
5
6
11
12
14
15
16
17
18
19
20
21
22
23
24
25
26
27
Trustee companies Schedule 8AA
Schedule 8AA—Trustee companies (regulation 5D.1.01)
Item Trustee companies
ANZ Trustees (Canberra) Limited
ANZ Trustees Limited
Australian Executor Trustees Limited
Australian Executor Trustees (Canberra) Limited
Australian Executor Trustees (NSW) Limited
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
Mutual Trust Pty Ltd
National Australia Trustees Limited
Perpetual Limited
Perpetual Trustee Company (Canberra) Limited
Perpetual Trustee Company Limited
Perpetual Trustees Consolidated Limited
Perpetual Trustees Queensland Limited
Perpetual Trustees S.A. Limited
Perpetual Trustees Victoria Limited
Perpetual Trustees W.A. Limited
Plan B Trustees Limited
Sandhurst Trustees Limited
Tasmanian Perpetual Trustees Limited
The Myer Family Company Ltd
The Trust Company Limited
The Trust Company (Australia) Limited
27A The Trust Company (PTCCL) Limited
The Trust Company (UTCCL) Limited
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5
Schedule 8AB Prescribed State and Territory provisions for paragraph 601RAE (4)(a) of the Act
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
Trustee Companies Act 1984 (Vic), sections 40–42
Trustee Companies Act 1987 (WA), Part IV and section 34
Trustee Companies Act 1988 (SA), sections 15–15B and 19–21
Trustee Companies Act 1953 (Tas), subsections 18C (1), (3)–(13)
Companies (Trustees and Personal Representatives) Act (NT), section 25
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12
13
14
15
Prescribed State and Territory laws and provisions for paragraph 601RAE(4)(b) of the Act—estate
administration Schedule 8AC
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
Children and Young Persons (Care and Protection) Act 1998 (NSW)
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)
Guardianship and Management of Property Act 1991 (ACT)
Testamentary Guardianship Act 1984 (ACT)
Adult Guardianship Act (NT)
Guardianship of Infants Act (NT)
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2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Schedule 8AD Prescribed State and Territory laws and provisions for paragraph 601RAE(4)(b) of the
Act
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
Probate and Administration Act 1898 and any regulations made under that Act
NSW Trustee and Guardian Act 2009 and any regulations made under that Act
Trustee Act 1925 and any regulations made under that Act
Trustee Companies Act 1964 and any regulations made under that Act
VICTORIA
Administration and Probate Act 1958 and any regulations made under that Act
Guardianship and Administration Act 1986 and any regulations made under that Act
Instruments Act 1958 and any regulations made under that Act
7A Legal Profession Act 2004 and any regulations made under that Act
Medical Treatment Act 1988 and any regulations made under that Act
State Trustees (State Owned Company) Act 1994 and any regulations made under that
Act
Trustee Act 1958 and any regulations made under that Act
QUEENSLAND
Guardianship and Administration Act 2000 and any regulations made under that Act
Legal Profession Act 2007 and any regulations made under that Act
Public Trustee Act 1978 and any regulations made under that Act
Succession Act 1981 and any regulations made under that Act
Trustee Companies Act 1968 and any regulations made under that Act
Trusts Act 1973 and any regulations made under that Act
Uniform Civil Procedure Rules 1999, Chapter 15 and rule 94
WESTERN AUSTRALIA
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
Trustees Act 1962 and any regulations made under that Act
SOUTH AUSTRALIA
Administration and Probate Act 1919 and any regulations made under that Act
Aged and Infirm Persons’ Property Act 1940 and any regulations made under that Act
Guardianship and Administration Act 1993 and any regulations made under that Act
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25
26
27
28
29
30
31
32
33
34
35
36
Prescribed State and Territory laws and provisions for paragraph 601RAE(4)(b) of the Act Schedule
8AD
Item State or Territory law and provisions
Legal Practitioners Act 1981 and any regulations made under that Act
Public Trustee Act 1995 and any regulations made under that Act
Trustee Act 1936 and any regulations made under that Act
25A Trustee Companies Act 1988 and any regulations made under that Act
TASMANIA
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
Supreme Court Civil Procedure Act 1932 and any regulations made under that Act
Trustee Act 1898 and any regulations made under that Act
AUSTRALIAN CAPITAL TERRITORY
Administration and Probate Act 1929 and any regulations made under that Act
Court Procedures Act 2004 and any regulations made under that Act
Guardianship and Management of Property Act 1991 and any regulations made under that
Act
Legal Profession Act 2006 and any regulations made under that Act
Trustee Act 1925 and any regulations made under that Act
Trustee Companies Act 1947 and any regulations made under that Act
NORTHERN TERRITORY
Aged and Infirm Persons’ Property Act and any regulations made under that Act
Public Trustee Act and any regulations made under that Act
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3
4
5
6
7
8
Schedule 8AE Relevant State and Territory provisions
Schedule 8AE—Relevant State and Territory
provisions (regulation 5D.2.06)
Item State or Territory provisions
Trustee Act 1925 (NSW), Part 2, Division 2
Trustee Act 1958 (Vic), Part I
Trusts Act 1973 (Qld), Part 3
Trustees Act 1962 (WA), Part III
Trustee Act 1936 (SA), Part 1
Trustee Act 1898 (Tas), Part II
Trustee Act 1925 (ACT), Part 2, Subdivision 2.2.1
Trustee Act (NT), Part I
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10
15
20
25
30
Option contract—prescribed indexes Schedule 8B
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
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
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
MIB 30 Index
16 Nasdaq 100 Index
17 Nasdaq Composite Index
18 Nikkei Index
19 Share Price Index
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
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
S&P/ASX 200 Industrials (GIC) Sector Index
31 S&P/ASX 200 Information Technology (GIC) Sector Index
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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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Modifications of Part 7.5 of the Act—compensation regimes Schedule 8C
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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Schedule 8C Modifications of Part 7.5 of the Act—compensation regimes
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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Modifications of Part 7.5 of the Act—compensation regimes Schedule 8C
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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insert
for a set of compensation arrangements
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9
Companies authorised to effect transfers under Part 7.11 of the Act Schedule 9
Schedule 9—Companies authorised to effect transfers
under Part 7.11 of the Act (regulation 7.11.01, definition of beneficial owner)
Item Companies
ANZ Nominees Limited
CHESS Depositary Nominees Pty Limited
Equity Nominees Limited
National Nominees Limited
Perpetual Nominees Limited
Sepon (Australia) Pty Limited
State Street Australia Ltd
The Trust Company (Nominees) Limited
The Trust Company (PTAL) Limited
Corporations Regulations 2001
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Schedule 10 Disclosure of fees and other costs
Part 1 Interpretation
Clause 101
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 collective 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 collective 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.
collective investment product means a managed investment product or a foreign
passport fund product.
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.
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Interpretation Part 1
Clause 101
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.
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 99BA(2) of the SIS Act; and
(b) for a collective 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 collective 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 collective
investment product, the superannuation product, the MySuper product or
the investment option; and
(b) capital appreciation (realised or unrealised) to the value of the collective
investment product, the superannuation product, the MySuper product or
the investment option.
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Schedule 10 Disclosure of fees and other costs
Part 1 Interpretation
Clause 102
performance fee means an amount paid or payable, calculated by reference to
the performance of a collective investment product, a superannuation product, a
MySuper product or an investment option.
service fees means advice fees, special request fees and switching fees.
special request fees includes fees paid or deducted from a product holder’s
collective 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 collective investment product—means an amount paid or payable
when a product holder transfers all or part of the product holder’s interest
in the collective investment product from one investment option to another.
withdrawal fee, for a collective investment product, 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 collective 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 collective
investment product:
(a) a contribution fee;
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Interpretation Part 1
Clause 103
(b) transactional and operational costs;
(c) an additional service fee;
(d) an establishment fee;
(e) a switching fee;
(f) an exit fee;
(g) a withdrawal fee;
(h) costs (related to a specific asset or activity to produce income) that an
investor would incur if he or she invested directly in the asset;
(i) incidental fees.
103 Transactional and operational costs
Transactional and operational costs include the following:
(a) brokerage;
(b) buy-sell spread;
(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.
Corporations Regulations 2001
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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 1 The fees and costs template for superannuation products
Clause 201
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. Entry fees and exit fees cannot be charged.
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 fee¹
Administration fee¹
Buy-sell spread
Switching fee
Advice fees
relating to all members
investing in a particular
MySuper product or investment
option
Other fees and costs²
Indirect cost ratio¹
1. If your account balance for a product offered by the superannuation entity is less than $6,000 at the end of the entity’s income year, the total combined amount of administration fees, investment fees and indirect costs charged to you is capped at 3% of the account balance. Any amount charged in excess of that cap must be refunded.
Corporations Regulations 2001
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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
2. [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 collective investment products
Clause 202
Division 2—The fees and costs template for collective investment
products
202 Template for a multiple fee structure—collective 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 collective 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
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 collective investment products Division 2
Clause 202A
[Name of collective 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—collective 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 collective investment product]
Type of fee or cost Amount How and when paid
Fees when your
money moves in or
out of the 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 collective investment products
Clause 202A
[Name of collective 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”.]
Corporations Regulations 2001
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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
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 collective 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) for each collective investment product:
(i) GST, after being reduced by any reduced input tax credits; and
(ii) stamp duty; and
(b) for each collective investment product offered by an Australian passport
fund or a notified foreign passport fund:
(i) any indirect taxes equivalent to GST that are payable in another
jurisdiction, after being reduced by any applicable tax credits that are
available in that jurisdiction; and
(ii) any duties equivalent to stamp duty that are payable in another
jurisdiction.
205 Column 2—include information for each MySuper product or investment
option
(1) The fee information must be set out:
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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
(a) for superannuation products—for each MySuper product and each
investment option offered by the relevant superannuation entity; and
(b) for collective 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.
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
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
collective investment product, must be included under the heading ‘Additional
Explanation of Fees and Costs’:
(a) the explanation of the fees mentioned in footnote 2 for superannuation
products and footnote 2 for collective 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 collective 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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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
(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
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 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 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 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
Exit fees
An exit fee is a fee, other than a buy-sell spread, that relates to the disposal of all
or part of a member’s interests in a 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 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
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.
212 Collective 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 product can affect your investment over a 1 year period. You should use this table to
compare this product with other products offered by managed investment schemes.
EXAMPLE—the Balanced Investment Option BALANCE OF $50 000 WITH A
CONTRIBUTION OF $5 000 DURING YEAR
Contribution Fees 0-4% For every additional $5 000 you put in, you will be
charged between $0 and $200.
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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
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
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 in relation to a collective investment product, the
fee 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 collective 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:
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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
(a) of $50 000; or
(b) worked out in accordance with clause 215.
Note: If there is a fee paid for the initial contribution, it should be described as the
establishment fee.
218 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 collective 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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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
(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 collective 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.
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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 7 Consumer Advisory Warning
Clause 221
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
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 collective 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
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
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;
(c) a statement that if the account balance for a MySuper product or a choice
product offered by the superannuation entity is less than $6,000 at the end
of the entity’s income year:
(i) the total combined amount of administration fees, investment fees and
indirect costs charged in relation to the MySuper product or a choice
product is capped at 3% of the account balance; and
(ii) any amount charged in excess of that cap must be refunded.
Collective 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 collective 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
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
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
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
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
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
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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Part 5B Modifications for superannuation products to which Subdivision 4.2B of Division 4 of Part
7.9 applies
(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
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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Part 5C Modifications for simple managed investment scheme
(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
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
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
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
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
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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Part 8 Modifications relating to periodic statements for RSA providers
(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.
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Modifications of Part 7.9 of the Act Schedule 10A
Modifications relating to periodic statements for superannuation entities and RSA providers Part 9
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.
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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
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.
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Modifications relating to ongoing disclosure of material changes and significant events in relation to
superannuation products and RSAs Part 10
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.
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Schedule 10A Modifications of Part 7.9 of the Act
Part 11 Modifications relating to charges for information requested
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.
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Modifications of Part 7.9 of the Act Schedule 10A
Modifications relating to information when member leaves a fund Part 12
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
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
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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Part 14 Modifications relating to obligation to give information about financial products
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.
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Modifications of Part 7.9 of the Act Schedule 10A
Modifications for confirmation of transactions Part 15
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.
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Schedule 10A Modifications of Part 7.9 of the Act
Part 16 Modifications relating to reporting periods
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;
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Modifications of Part 7.9 of the Act Schedule 10A
Modifications relating to application forms for specified superannuation products Part 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.
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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
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.
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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
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
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Part 19 Modifications for carbon units, Australian carbon credit units and eligible international
emissions units
(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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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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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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emissions units
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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emissions units
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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emissions units
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
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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offer of securities that may become a recognised offer Schedule 10AA
Modification of Part 7.9 of the Act—disclosure to investors not required for recognised offer under
Chapter 8 Part 2
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
(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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Modifications of the Act relating to Short-Form Product Disclosure Statements Schedule 10BA
Modifications of Part 7.7 of the Act Part 1
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
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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Modifications of Part 7.9 of the Act Part 3
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.
Short-Form PDS not to be given for certain products
(4) Subsection (1) does not apply in relation to the following:
(a) a general insurance product;
(b) a managed investment product in relation to an Australian passport fund;
(c) a foreign passport fund product.
(5) To avoid doubt, nothing in Division 5AB of Part 7.9 of the regulations or in
Part 3 of Schedule 10BA to the regulations permits a regulated person to give a
Short-Form PDS or a Supplementary Short-Form PDS in relation to a financial
product mentioned in subsection (4).
1017I Contents of a Short-Form PDS
Contents
(1) The Short-Form PDS for a financial product must contain the following:
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(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.
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”.
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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:
(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.
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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;
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
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(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:
(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
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insert
, Supplementary Product Disclosure Statement, Short-Form PDS or Supplementary
Short-Form PDS
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
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insert
; or
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
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or a Supplementary Product Disclosure Statement
insert
, 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
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
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 fee¹
Administration fee¹
Buy-sell spread
Switching fee
Advice fees
relating to all members
investing in a particular
MySuper product or investment
option
Other fees and costs²
Indirect cost ratio¹
1. If your account balance for a product offered by the superannuation entity is less than $6,000 at the end of the entity’s income year, the total combined amount of administration fees, investment fees and indirect costs charged to you is capped at 3% of the account balance. Any amount charged in excess of that cap must be refunded.
2. [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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(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 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 or subsection 99BA(2) 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:
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(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
(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
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(ii) who is responsible for paying the costs; and
(c) state whether a person can:
(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
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(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;
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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Clause 1
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 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
reasonably believes has the least volatile underlying assets (whether or not
section 5 gives that information for any other investment option):
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scheme
Clause 7
(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:
(i) includes the information mentioned in subclause (3), (4) or (5); and
(ii) presents it in the way mentioned in the subclause.
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10E
Clause 8
(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 [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).].
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Schedule 10E Form and content of Product Disclosure Statement—simple managed investment
scheme
Clause 8
(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:
(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.
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10E
Clause 9
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 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 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 scheme.
(3) The responsible entity may provide additional information about:
(a) taxation matters relating to the registered scheme; or
(b) taxation matters relating to registered 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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1
2
3
4
Schedule 11 Persons who are not covered by section 1433 of the Act
Schedule 11—Persons who are not covered by
section 1433 of the Act (regulation 10.2.36)
Item Person Period
A person who is or has been an insolvent under 5 years after the start of the
administration administration
A body corporate that has been a Chapter 5 body 5 years after the start of the
corporate administration
A person who has been convicted of fraud 10 years after the conviction
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;
10 years after the conduct first
occurred
(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
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
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10
Persons who are not covered by section 1433 of the Act Schedule 11
Item Person Period
7 A person who has had:
(a) an authorisation; or
5 years after the cancellation,
suspension or revocation
(b) a registration; or
(c) a licence; or
(d) the ability to engage in financial services activities;
cancelled, suspended or revoked by, or as a direct result
of the actions of, a regulator
8 A person who is a responsible officer of a person
mentioned in item 1
8A A person who is a subsidiary of a body corporate
mentioned in item 2
8B A person (person 1) who is related body corporate of a
body corporate that is mentioned in item 2 (person 2), if
person 2 has previously held a licence, registration or
authorisation granted by a regulator mentioned in
paragraphs (a) to (d) of the definition of regulator in
regulation 10.2.35
A person an associate of whom is a person mentioned in
any of items 3 to 7
A person who is deemed to be a registered insurance
broker under subsection 24(2) of the Insurance (Agents
and Brokers) Act 1984
This item applies to the person only to the extent that the
person operates insurance broking activities that are
described in that Act
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Schedule 12 ASIC transitional standards
Schedule 12—ASIC transitional standards (regulation 12.7.01)
1. The following provisions of Book 3 of the Prudential Notes and Prudential
Standards issued by AFIC under Part 4 of the AFIC Code of a State or Territory,
as in force immediately before the transfer date:
(a) the modification of the accounting standard known as Accounting Standard
AASB 1032 (published in the Gazette on 12 December 1996) by Prudential
Standard 3.3.1, except the definition of deposits added to the accounting
standard by the Prudential Standard;
(b) Prudential Standard 3.5.4;
(c) Prudential Standard 3.5.5;
(d) Prudential Standard 3.7.1;
(e) Prudential Standard 3.7.4;
(f) Prudential Standard 3.7.5.
2. The following provisions of Book 4 of the Prudential Notes and Prudential
Standards issued by AFIC under Part 4 of the AFIC Code of a State or Territory,
as in force immediately before the transfer date:
(a) the modification of the accounting standard known Accounting Standard
AASB 1032 (published in the Gazette on 12 December 1996) by Prudential
Standard 4.3.1, except the definition of deposits added to the accounting
standard by the Prudential Standard;
(b) Prudential Standard 4.7.1;
(c) Prudential Standard 4.7.4;
(d) Prudential Standard 4.7.5.
3. The following provisions of Book 5 of the Prudential Notes and Prudential
Standards issued by AFIC under Part 4 of the AFIC Code of a State or Territory,
as in force immediately before the transfer date:
(a) Prudential Standard 5.5.1;
(b) Prudential Standard 5.5.3;
(c) Prudential Standard 5.5.4.
4. The following provisions of Book 6 of the Prudential Notes and Prudential
Standards issued by AFIC under Part 4 of the AFIC Code of a State or Territory,
as in force immediately before the transfer date:
(a) Prudential Standard 6.7.2;
(b) Prudential Standard 6.7.4;
(c) Prudential Standard 6.7.5;
(d) Prudential Standard 6.8.3.
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Transition to Part 3 of the Insolvency Practice Schedule (Corporations) Schedule 13
Schedule 13—Transition to Part 3 of the Insolvency
Practice Schedule (Corporations) Note: See subregulation 10.25.01(3).
Corporations Act 2001
1 Section 1550 (paragraph relating to Part 3)
Omit “that starts on or after the commencement of Part 1 of Schedule 2 to the
Insolvency Law Reform Act 2016”, substitute “that starts on or after 1 September
2017”.
2 After section 1554
Insert:
1554A Saving of Register of Official Liquidators
(1) This section applies to the Register of Official Liquidators kept in accordance
with subsection 1286(2) of the old Act.
(2) Despite the repeal of sections 1283 and 1286 by Schedule 2 to the Insolvency
Law Reform Act 2016, the Register of Official Liquidators continues in
existence, and may be dealt with, as if those repeals had not happened.
3 Section 1578 (paragraph relating to new external administrations)
Omit “the commencement of the Insolvency Law Reform Act 2016 (called new
external administrations)”, substitute “1 September 2017”.
4 Section 1579
Repeal the section, substitute:
1579 Application of Part 3 of the Insolvency Practice Schedule (Corporations)—
general rules
(1) Part 3 of the Insolvency Practice Schedule (Corporations) applies in relation to
an external administration of a company that starts on or after 1 September 2017.
(2) Part 3 of the Insolvency Practice Schedule (Corporations) applies in relation to
an ongoing external administration of a company in accordance with this
Division.
5 Sections 1581 and 1582
Repeal the sections, substitute:
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Schedule 13 Transition to Part 3 of the Insolvency Practice Schedule (Corporations)
1581 Old Act continues to apply in relation to remuneration for administrators
already appointed or appointed during transition period
(1) Despite the repeal of sections 449E and 473 and the repeal and substitution of
subsections 499(3) to (7) of the old Act by Schedule 2 to the Insolvency Law
Reform Act 2016, the old Act continues to apply in relation to the remuneration
of an external administrator of a company who is appointed:
(a) before the start time; or
(b) during the transition period.
(2) Despite subsection (1), if, under Subdivision F of this Division, Division 75 of
the Insolvency Practice Schedule (Corporations) rather than the old Act would
apply to a meeting that deals with the remuneration of an external administrator
of a company who is appointed before the start time or during the transition
period, Division 75 of the Insolvency Practice Schedule (Corporations) applies to
that meeting.
(3) In this section:
start time means the commencement of Schedule 1 to the Insolvency Law
Reform Act 2016.
transition period means the period:
(a) starting immediately after the start time; and
(b) ending at the end of 31 August 2017.
1582 Duties of administrators relating to remuneration and other benefits
(1) Section 60-20 of the Insolvency Practice Schedule (Corporations) applies on and
after 1 September 2017 in relation to an external administrator of an ongoing
external administration of a company regardless of when the administrator was
appointed.
(2) However, that section does not apply in relation to arrangements made before
1 September 2017.
6 Subsection 1582(1)
After “applies”, insert “on and after 1 September 2017”.
7 Section 1584
Omit all the words after “applies”, substitute “on and after 1 September 2017
regardless of when the vacancy in the office of the liquidator arose”.
8 At the end of section 1586
Add “on and after 1 September 2017”.
9 Subsection 1588(2) (heading)
Repeal the heading, substitute:
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Old regulations continue to apply to money received before 1 September 2017
10 Subsection 1590(2) (heading)
Repeal the heading, substitute:
Old regulations continue to apply to securities received before 1 September 2017
11 At the end of section 1591
Add “on and after 1 September 2017”.
12 Section 1592
Repeal the section, substitute:
1592 Transitional rules for annual administration returns
(1) Section 70-5 of the Insolvency Practice Schedule (Corporations) applies in
relation to a person if the person first began to be an external administrator of a
company on or after 1 September 2017.
(2) Section 70-5 of the Insolvency Practice Schedule (Corporations) also applies in
relation to a person if the person first began to be an external administrator of a
company before 1 September 2017 as if the reference in that section to an
administration return year for the administrator were a reference to:
(a) the first full year starting on or after 1 September 2017 that is an
anniversary of when the person first began to be the external administrator
of the company; and
(b) each subsequent period of 12 months.
(3) Despite the repeal of the old return provisions by Schedule 2 to the Insolvency
Law Reform Act 2016, those provisions continue to apply to an external
administrator of a company appointed before 1 September 2017:
(a) if the end of the 6-month period referred to in the old return provisions
occurs before 1 March 2018—in relation to that period; and
(b) if the end of that period is not an anniversary of the administrator’s
appointment—in relation to the subsequent 6-month period.
(4) To avoid doubt, despite the repeal of the old return provisions by Schedule 2 to
the Insolvency Law Reform Act 2016, audits may be continued in relation to
accounts lodged under those provisions as if the old Act continued to apply.
(5) In this section:
old return provisions means the following provisions of the old Act:
(a) subsection 438E(1);
(b) subsection 445J(1);
(c) subsection 539(1), other than the extent to which it relates to a liquidator
ceasing to act as liquidator.
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1592A Transitional rules for end of administration returns
(1) Section 70-6 of the Insolvency Practice Schedule (Corporations) applies in
relation to external administrations that end on or after 1 September 2017.
(2) Despite the repeal of the old return provisions by Schedule 2 to the Insolvency
Law Reform Act 2016, those provisions continue to apply, in relation to an
external administrator of a company, if the external administrator ceases to act as
an external administrator for the company before 1 September 2017.
(3) To avoid doubt, despite the repeal of the old return provisions by Schedule 2 to
the Insolvency Law Reform Act 2016, audits may be continued in relation to
accounts lodged under those provisions as if the old Act continued to apply.
(4) In this section:
old return provisions means the following provisions of the old Act, as in force
before their repeal by Schedule 2 to the Insolvency Law Reform Act 2016:
(a) subsection 438E(2);
(b) subsection 445J(2);
(c) subsection 539(1), to the extent to which it relates to a liquidator ceasing to
act as liquidator.
13 Section 1594
After “apply”, insert “on and after 1 September 2017”.
14 Subsection 1596(1)
After “applies”, insert “on and after 1 September 2017”.
15 Sections 1597, 1598 and 1599
After “applies”, insert “on and after 1 September 2017”.
16 At the end of section 1601
Add “on and after 1 September 2017”.
17 Section 1604
Omit “2017”, insert “2018”.
18 Section 1606
After “apply”, insert “on and after 1 September 2017”.
19 Section 1606
Omit “the commencement day”, substitute “that day”.
20 Section 1612
After “apply”, insert “on and after 1 September 2017”.
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21 Section 1612
Omit “the commencement day”, substitute “that day”.
22 Section 1613
After “applies”, insert “on and after 1 September 2017”.
23 Section 1615
After “applies”, insert “on and after 1 September 2017”.
24 Section 1615
Omit “the commencement day”, substitute “that day”.
25 Subsection 1618(2)
After “apply”, insert “on and after 1 September 2017”.
26 Subsection 1618(2)
Omit “the commencement day”, substitute “that day”.
27 Subsection 1618(3)
After “applies”, insert “on and after 1 September 2017”.
28 Subsection 1618(3)
Omit “the commencement day”, substitute “that day”.
29 Subsection 1618(4)
After “applies”, insert “on and after 1 September 2017”.
30 Subsection 1618(4)
Omit “the commencement day”, substitute “that day”.
31 Subsection 1618(6)
After “applies”, insert “on and after 1 September 2017”.
32 Subsection 1618(6)
Omit “the commencement day”, substitute “that day”.
33 Subsection 1619(2)
After “apply”, insert “on and after 1 September 2017”.
34 Subsection 1619(2)
Omit “the commencement day”, substitute “that day”.
35 Subsection 1619(4)
After “applies”, insert “on and after 1 September 2017”.
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36 Subsection 1619(4)
Omit “the commencement day”, substitute “that day”.
37 Section 1620
After “applies”, insert “on and after 1 September 2017”.
38 Section 1620
Omit “the commencement day”, substitute “that day”.
39 Section 1623
Repeal the section, substitute:
1623 Transitional rules for controller returns
(1) Section 422A, as inserted by Schedule 2 to the Insolvency Law Reform Act 2016,
applies in relation to a person if the person first began to be a controller of the
property of a corporation on or after 1 September 2017.
(2) Section 422A, as inserted by Schedule 2 to the Insolvency Law Reform Act 2016,
also applies in relation to a person if the person first began to be the controller of
the property of a corporation before 1 September 2017 as if the reference in that
section to a control return year for the controller were a reference to:
(a) the first full year starting on or after 1 September 2017 that is an
anniversary of when the person first began to be the controller of the
property of a corporation; and
(b) each subsequent period of 12 months.
(3) Despite the repeal of subsections 432(1) and (1A) of the old Act by Schedule 2 to
the Insolvency Law Reform Act 2016, those subsections continue to apply, in
relation to a controller of a corporation appointed before 1 September 2017:
(a) if the end of the 6-month period referred to in paragraph 432(1)(a) occurs
before 1 March 2018—in relation to that period; and
(b) if the end of that period is not an anniversary of the administrator’s
appointment—in relation to the subsequent 6-month period.
(4) To avoid doubt, despite the repeal of subsections 432(1) and (1A) of the old Act
by Schedule 2 to the Insolvency Law Reform Act 2016, audits may be continued
in relation to accounts lodged under those provisions as if the old Act continued
to apply.
1623A Transitional rules for end of control returns
(1) Section 422B, as inserted by Schedule 2 to the Insolvency Law Reform Act 2016,
applies in relation to a control of the property of a corporation that ends on or
after 1 September 2017.
(2) Despite the repeal of subsections 432(1) and (1A) of the old Act by Schedule 2 to
the Insolvency Law Reform Act 2016, those subsections continue to apply, in
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relation to controllers that cease to be a controller of property of a corporation, if
the cessation occurs before 1 September 2017.
40 Subsection 1627(3)
After “apply”, insert “on and after 1 September 2017”.
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