Differential fee arrangements for managed investment schemes have been introduced by ASIC. Under the new policy, ASIC will allow the fees where they are based on the total value of members’ interests in a specific scheme or schemes, or where they are negotiated with professional or “sophisticated” investigators.

The policy requires disclosure of the differential fee arrangements in disclosure documents, and to existing members of the relevant schemes no later than the time of the first member communication after March 18.

Law firm Abbott Tout says this will require responsible entities to notify existing members with their June 30 reporting, if not earlier. “Responsible entities will also have to ensure the differential fee arrangements don’t adversely affect the fees payable by other members – a requirement which could be rather difficult to discharge”.

At this stage, the new ASIC requirements don’t apply to superannuation trustees.