Document ID: chunk:federal_register_of_legislation:F2021C00160:body:0:p29
Version: federal_register_of_legislation:F2021C00160
Segment Type: other
Provision Reference: 
Character Range: 78841–81931

is negative, the amount of performance fees in the example must be zero.

        Transaction costs

            (4) The example of transaction costs for an investment option offered by a managed investment scheme is the amount of transaction costs net of any amount recovered by the buy-sell spread, 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.

            (5) If there is a range in the amount of transaction costs that may be charged for an investment option offered by a managed investment scheme, the example must use the highest transaction costs in the range.

    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.

    Division 6A—Cost of Product Information

    220A Superannuation products

            (1) Cost of product information for each MySuper product offered by the superannuation entity and each investment option offered by the entity:

                (a) must be included in the "Fees and other costs" section of the Product Disclosure Statement, following the "Example of Annual Fees and Costs";

                (b) must include the following heading and text immediately before the presentation of the first cost of product information:

                Cost of product for 1 year

                The cost of product gives a summary calculation about how ongoing annual fees and costs can affect your superannuation investment over a 1-year period for all superannuation products and investment options. It is calculated in the manner shown in the Example of annual fees and costs.

                The cost of product information assumes a balance of $50,000 at the beginning of