Document ID: chunk:federal_register_of_legislation:F2022C01176:body:0:p5
Version: federal_register_of_legislation:F2022C01176
Segment Type: other
Provision Reference: 
Character Range: 10250–13285

may be charged, rebated or waived by the corporate director or a CCIV to a member that is a wholesale client differs from that applying to other members based on individual negotiation between the corporate director and the member.

8 Conditions

        (1) The corporate director must ensure that:

           (a) where a differential fee arrangement of a kind referred to in subsection 7(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 7(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 sub-fund of the CCIV by no later than the date of the first communication by the corporate director to all members of the sub-fund 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 shares in the CCIV that is in use during the period in which the differential fee arrangement is offered.

        (2) The corporate director must ensure that any differential fee arrangements do not adversely affect the fees paid or to be paid by any member of the sub-fund of the CCIV who is not entitled to the benefit of those fee arrangements.

        (3) The corporate director must ensure that where a differential fee arrangement of a kind referred to in subsection 7(2) is in place or is to be offered, the arrangement is applied without discrimination to all members of the sub-fund of the CCIV who satisfy the criteria necessary to receive the benefit of the arrangement.

Endnotes

Endnote 1—Instrument history

Instrument number  Date of FRL registration      Date of commencement  Application, saving or transitional provisions
2017/40            10/03/2017 (see F2017L00202)  11/03/2017
2022/0940          14/11/2022 (see F2022L01459)  15/11/2022            -

Endnote 2—Amendment history
ad. = added or inserted     am. = amended     LA = Legislation Act 2003    rep. = repealed     rs. = repealed and substituted
Provision affected                                      How affected
Section 1                                               am. 2022/0940
Section 2                                               rep. s48D LA
Section 3                                               am. 2022/0940
Section 4 (definition of differential fee arrangement)  rs. 2022/0940
Section 4 (definition of employee member)               rs. 2022/0940
Section 5 (heading)                                     rs. 2022/0940
Subsection 5(2)                                         am. 2022/0940
Subsection 5(3)                                         am. 2022/0940
Section 7                                               ad. 2022/0940
Section 8                                               ad. 2022/0940