29VACharging rules

#### 29VA Charging rules (1) The trustee, or the trustees, of a regulated superannuation fund that offers a MySuper product may only charge a fee in relation to the MySuper product during a period if it satisfies one of the charging rules set out in this section in relation to that period. All MySuper members charged same flat fee (2) This rule is satisfied if: (a) the fee is charged in relation to all members of the fund who hold the MySuper product; and (b) the amount of the fee is the same for each of those members. All MySuper members charged same percentage of account balance (3) This rule is satisfied if: (a) the fee is charged in relation to all members of the fund who hold the MySuper product; and (b) the amount of the fee charged in relation to one member is a percentage of so much of the member’s account balance with the fund that relates to the MySuper product; and (c) the amount of the fee charged in relation to each other member of the fund who holds the MySuper product is the same percentage of so much of that member’s account balance with the fund that relates to the MySuper product. All MySuper members charged combination of same flat fee and same percentage of account balance (4) This rule is satisfied if: (a) the fee is charged in relation to all members of the fund who hold the MySuper product; and (b) the amount of the fee charged in relation to one member is the sum of a fixed amount (the flat fee) and another amount that is a percentage of so much of the member’s account balance with the fund that relates to the MySuper product; and (c) the amount of the fee charged in relation to each other member of the fund who holds the MySuper product is the sum of the flat fee and the same percentage of so much of that member’s account balance with the fund that relates to the MySuper product. All MySuper members to whom action relates charged same flat fee (5) This rule is satisfied if: (a) the fee is a buy‑sell spread, a switching fee or an activity fee; and (b) the fee is only charged in relation to those members of the fund: (i) who hold the MySuper product; and (ii) in relation to whom a relevant action is taken by the trustee or trustees of the fund; and (c) the amount of the fee charged is the same for each member to whom it is charged. All MySuper members to whom action relates charged same percentage of account balance (6) This rule is satisfied if: (a) the fee is a buy‑sell spread, a switching fee or an activity fee; and (b) the fee is only charged in relation to those members of the fund: (i) who hold the MySuper product; and (ii) in relation to whom a relevant action is taken by the trustee or trustees of the fund; and (c) the amount of the fee charged in relation to one of those members is a percentage of so much of the member’s account balance with the fund: (i) that relates to the MySuper product; and (ii) in relation to which the relevant action is taken; and (d) the amount of the fee charged in relation to each of the other of those members is the same percentage of so much of that member’s account balance with the fund: (i) that relates to the MySuper product; and (ii) in relation to which the relevant action is taken. All MySuper members to whom action relates charged combination of same flat fee and same percentage of account balance (7) This rule is satisfied if: (a) the fee is a buy‑sell spread, a switching fee or an activity fee; and (b) the fee is only charged in relation to those members of the fund: (i) who hold the MySuper product; and (ii) in relation to whom a relevant action is taken by the trustee or trustees of the fund; and (c) the amount of the fee charged in relation to one of those members is the sum of a fixed amount (the flat fee) and another amount that is a percentage of so much of the member’s account balance with the fund: (i) that relates to the MySuper product; and (ii) in relation to which the relevant action is taken; and (d) the amount of the fee charged in relation to each of the other of those members is the sum of the flat fee and the same percentage of so much of that member’s account balance with the fund: (i) that relates to the MySuper product; and (ii) in relation to which the relevant action is taken. Administration fee exemption for employees of an employer‑sponsor (8) This rule is satisfied if: (a) the fee is an administration fee charged in relation to one or more members of the fund who hold the MySuper product in accordance with the administration fee exemption for employees of an employee‑sponsor (see section 29VB); and (b) in relation to those members of the fund who hold the MySuper product but in relation to whom the administration fee is not charged in accordance with the administration fee exemption for employees of an employee‑sponsor (the remaining members)—the fee would satisfy the charging rule in subsection (2), (3) or (4) if the remaining members were the only members of the fund who held the MySuper product. > Note: In some circumstances, the RSE licensee may wish to offer a MySuper product for the employees of a large employer or its associates (see sections 29T and 29TB). Any fee set for that MySuper product may differ from the equivalent fee set for another MySuper product within the fund. In other circumstances, a separate MySuper product may not be offered, but instead a lower administration fee charged to the employees of a particular employer‑sponsor (see section 29VB). Lifecycle differentiated investment fees (9) This rule is satisfied if: (a) the fee is an investment fee; and (b) the fee would satisfy one of the charging rules in subsections (2) to (4) if the rule were applied to a subclass of the members of the fund who hold the MySuper product to whom gains and losses from different classes of asset of the fund may be streamed in accordance with a lifecycle exception, rather than in relation to all members of the fund who hold the MySuper product; and (d) the investment fees for each such subclass reflect a fair and reasonable attribution of the investment costs of the fund between all such subclasses. Advice fees (9A) This rule is satisfied if: (a) the fee is an advice fee that relates directly to financial product advice provided to a member; and (b) the member holds a MySuper product; and (c) the fee is charged to the member; and (d) the fee is to be paid in accordance with the terms of an arrangement entered into by the member; and (e) the arrangement is not an ongoing fee arrangement. Insurance fees (10) This rule is satisfied if: (a) the fee is an insurance fee that 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; (ii) costs incurred by the trustee, or the trustees, of a superannuation entity in relation to the provision of insurance for a member; and (b) the member holds a MySuper product; and (c) the fee is charged to the member. Fees for members with low balances (11) This rule is satisfied if: (a) the fee is an administration fee or investment fee; and (b) the fee is charged at a reduced amount, in accordance with section 99G, in relation to one or more members of the fund who hold the MySuper product; and (c) in relation to the remaining members of the fund who hold the MySuper product, the fee would satisfy a charging rule in another subsection of this section if those were the only members of the fund who held the MySuper product.