SUPERANNUATION INDUSTRY (SUPERVISION) ACT 1993 - SECT 29V Fees that may be charged in relation to a MySuper product

SUPERANNUATION INDUSTRY (SUPERVISION) ACT 1993 - SECT 29V

  (1)   The trustee, or the trustees, of a regulated superannuation fund that offers a MySuper product may only charge fees of one or more of the following kinds in relation to that product:

  (a)   an administration fee;

  (b)   an investment fee;

  (c)   a buy - sell spread;

  (d)   a switching fee;

  (f)   an activity fee;

  (g)   an advice fee;

  (h)   an insurance fee.

  (2)   An administration fee is a fee that relates to the administration or operation of a 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 fund; 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.

  (3)   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.

  (4)   A buy - sell spread is a fee to recover transaction costs incurred by the trustee, or the trustees, of a superannuation entity in relation to the sale and purchase of assets of the entity .

  (5)   A switching fee is a fee to recover the costs of switching all or part of a member's interest in a superannuation entity from one class of beneficial interest in the entity to another.

  (7)   A fee is an activity fee if:

  (a)   the fee relates to costs incurred by the trustee, or the trustees, of a 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

  (aa)   the fee does not satisfy the condition in paragraph   (8)(a); and

  (b)   those costs are not otherwise charged as an administration fee, an investment fee, a buy - sell spread, a switching fee or an insurance fee.

  (8)   A fee is an advice fee if:

  (a)   the fee relates directly to 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; and

  (b)   those costs are not otherwise charged as an administration fee, an investment fee, a switching fee or an insurance fee.

  (9)   A fee is an insurance fee if:

  (a)   the fee relates directly to either or both of the following:

  (i)   insurance premiums paid by the trustee, or the trustees, of a superannuation entity in relation to a member or members of the entity;

  (ii)   costs incurred by the trustee, or the trustees, of a superannuation entity in relation to the provision of insurance for a member or members of the entity; and

  (b)   the fee does not relate to any part of a premium paid or cost incurred in relation to a life policy or a contract of insurance that relates to a benefit to the member that is based on the performance of an investment rather than the realisation of a risk; and

  (c)   the premiums and costs to which the fee relates are not otherwise charged as an administration fee, an investment fee, a switching fee, an activity fee or an advice fee.