Document ID: chunk:federal_register_of_legislation:F2021C00160:body:0:p2
Version: federal_register_of_legislation:F2021C00160
Segment Type: other
Provision Reference: 
Character Range: 2920–5970

administration fees and costs, for a superannuation product, means the fees and costs that relate to the administration or operation of the superannuation entity to which the product relates and include:

            (a) costs that relate to that administration or operation debited from reserves that, in a period, exceed amounts credited to reserves in that period that are also administration fees and costs;

            (aa) distribution costs;

            (b) indirect costs that relate to that administration or operation; and

            (c) intra-fund advice costs;

        but do not include:

            (d) transaction costs and excluded transactional and operational costs; and

            (e) costs that are otherwise charged as investment fees and costs, a buy-sell spread, a switching fee, an activity fee, an advice fee or an insurance fee.

advice fee:

            (a) for a superannuation product—is a fee that relates directly to costs (other than intra-fund advice costs) incurred by the trustee, or the trustees, of a 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, a trustee or trustees of the entity;

            where those costs are not otherwise charged as administration fees and costs, investment fees and costs, transaction costs, a switching fee, an activity fee or an insurance fee; 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, management fees and costs or transaction costs.

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.

borrowing costs means costs, including costs in an interposed vehicle, relating to a credit facility within the meaning of regulation 7.1.06 relating to the provision of credit within the meaning of subregulation 7.1.06(3).

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—a fee to recover costs incurred by the trustee, or the trustees, of a superannuation entity in relation to the sale and purchase of assets of the entity; and

            (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 costs incurred in transactions by the managed investment scheme; and

            (c) despite paragraphs (a) and (b), in