Financial Markets Conduct Regulations 2014

2 Interpretation and other matters relating to fees

(1)

In this schedule,—

contribution fee means an amount paid or payable for the initial, or any subsequent, contribution or investment in the fund

establishment fee

(a)

means an amount paid or payable for the establishment of an investor’s interest in a managed investment scheme; but

(b)

does not include a contribution fee paid or payable for the initial contribution or investment in the fund if the fee is the same as the contribution fee paid or payable for subsequent contributions or investments in the fund

fund charges means—

(a)

management and administration charges:

(b)

performance-based fees

individual action fees

(a)

means fees charged to an investor on an individual basis for investor-specific decisions or actions; and

(b)

includes—

(i)

contribution fees:

(ii)

fees for financial advice:

(iii)

establishment fees:

(iv)

termination fees:

(v)

withdrawal fees:

(vi)

transfer fees:

(vii)

switching fees

management and administration charges

(a)

means fees and costs charged by any person in respect of the fund or an underlying fund that affect investors in proportion to their interest in the fund; but

(b)

does not include performance-based fees or trading expenses

other charges

(a)

means fees and costs charged by any person in respect of the fund or an underlying fund; and

(b)

includes any fee charged to a scheme participant in respect of the scheme participant’s membership of, or participation in, the scheme; but

(c)

does not include performance-based fees, management and administration charges, trading expenses, or individual action fees

performance-based fees means fees charged by the manager, or any manager of a related underlying fund, on the basis of performance of the fund or related underlying fund

termination fee means an amount paid or payable on the disposal of all of the investor’s managed investment products in the scheme

trading expense

(a)

means the actual costs of buying and selling investments, such as brokerage fees and spreads, including those costs incurred by underlying funds; but

(b)

does not include custodial fees

withdrawal fee means an amount, other than a termination fee, paid or payable in respect of—

(a)

a withdrawal; or

(b)

the disposal of a managed investment product in the scheme.

(2)

For the purposes of disclosure under this schedule, fees must be calculated net of rebates that are paid or payable to the fund.

Schedule 4 clause 2(1) individual action fees paragraph (b)(ii): replaced, on 15 March 2021, by regulation 29(1) of the Financial Markets Conduct Amendment Regulations 2020: (LI 2020/315).

Schedule 4 clause 2(1) other charges paragraph (c): amended, on 28 October 2016, by regulation 16(3) of the Financial Markets Conduct Amendment Regulations (No 2) 2016 (LI 2016/249).