Document ID: chunk:federal_register_of_legislation:F2022C01176:body:0:p3
Version: federal_register_of_legislation:F2022C01176
Segment Type: other
Provision Reference: 
Character Range: 5295–7987

particular characteristics of that member or of their investment, where the amount of the benefit by way of lower fees charged to that member, or the rebate or waiver of fees provided to that member, is no greater than a reasonable estimate of the amount of the saving or expected saving.
Individual negotiation with wholesale clients
(3) This instrument also applies to a differential fee arrangement in relation to a registered scheme under which the fees that may be charged, rebated or waived by the responsible entity to a member that is a wholesale client differs from that applying to other members based on individual negotiation between the responsible entity and the member.

6 Conditions
(1) The responsible entity must ensure that:
           (a) where a differential fee arrangement of a kind referred to in subsection 5(2) is in place or is to be offered—a statement of the basis on which the differential fee will be calculated and which specifies the fees that members will have to bear; and
           (b) where a differential fee arrangement of a kind referred to in subsection 5(3) is in place or is to be offered—a statement of that fact,
is or has been disclosed in a clear, concise and effective manner:
           (c) to existing members of the scheme by no later than the date of the first communication by the responsible entity to all members after the date when the differential fee arrangement is first offered; and
           (d) in any Product Disclosure Statement required by the Act in relation to interests in the scheme that is in use during the period in which the differential fee arrangement is offered.
(2) The responsible entity must ensure that any differential fee arrangements do not adversely affect the fees paid or to be paid by any member of the scheme who is not entitled to the benefit of those fee arrangements.
(3) The responsible entity must ensure that where a differential fee arrangement of a kind referred to subsection 5(2) is in place or is to be offered, the arrangement is applied without discrimination to all members who satisfy the criteria necessary to receive the benefit of the arrangement.

7 CCIVs – differential fees
       (1) A corporate director of a CCIV does not have to comply with paragraphs 1224D(2)(b) or (3)(b) of the Act, as the case may be, to the extent they would otherwise prohibit the corporate director or the CCIV from administering a differential fee arrangement.
Characteristics of the member or of their investment
       (2) This instrument applies to a differential fee arrangement in relation to a CCIV under which the fees that may be charged, rebated or waived by the corporate director or the CCIV