COLL S3.12 Payments Out of Scheme Property

(1) The payments that may be made out of the scheme property to any person, whether by way of remuneration or charges for services, or reimbursement of expenses.
(2) For each category of remuneration, charges or expenses, the following information:
(a) the current rates or amounts of the remuneration, charges or expenses;
(b) how the remuneration, charges or expenses must be calculated and accrue and when they must be paid;
(c) if notice has been given to unitholders of the operator's intention to—
(i) introduce a new category of remuneration for its services; or
(ii) increase the basis of any current charge; or
(iii) change the basis of the treatment of a payment from the capital property;

particulars of that introduction, increase or change and when it will take place;
(d) the types of any other charges and expenses that may be taken out of the scheme property;
(e) if all or part of the remuneration or expenses is to be treated as a charge to capital—
(i) that fact; and
(ii) the basis of the charge that may be treated as a capital charge.
(3) A table substantially in the form of table S3.12 illustrating the effect of charges and expenses, together with the notes and statements following the table.

Table S3.12 Charges and expenses for the scheme

One-off charges taken before or after you invest
Entry charge [insert percentage]%1
Exit charge [insert percentage]%1
This is the maximum that might be taken out of your money [insert as applicable before
it is invested or before the proceeds of your investment are paid out].
Charges taken from the fund over a year
Ongoing charges [insert percentage]%2
Charges taken from the fund under certain specific conditions
Performance fees [insert percentage]% a year of any returns the
fund achieves above the [insert name of benchmark].

Note 1 The percentages shown in the entry and exit charges are the maximum figures. In some cases you might pay less.

Note 2 The percentage for the ongoing charges is based on expenses for the year ending [insert year]. This figure may vary from year to year. Ongoing charges excludes—
•   performance fees
•   portfolio transaction costs, other than entry and exit charges incurred when buying or selling units in another collective investment scheme.

Statements about charges and expenses

The charges you pay are used to pay the costs of running the scheme, including the costs of marketing and distributing it. These charges reduce the potential growth, and rate of return, of your investment.
Derived from QFCRA RM/2010-05 (as from 1st January 2011)