COLL S4.13 Payments Out of Scheme Property
(1) In relation to each type of payment from the scheme property, details of the following:
(a) who the payment is made to;
(b) what the payment is for;
(c) if available, the rate or amount;
(d) if the rate or amount is not available—how it must be calculated and accrued;
(e) when must it be paid;
(f) if a performance fee is taken—a plain English statement of the maximum amount or percentage of the scheme property that the performance fee might represent in an annual accounting period together with examples of the operation of the performance fee.
(2) How notice must be given to unitholders of the operator's intention to do any of the following:
(a) introduce a new category of remuneration for its services;
(b) increase the basis of any current charge;
(c) change the basis of the treatment of a payment from the capital property.
(3) A table substantially in the form of table S4.13 illustrating the effect of charges and expenses, together with the notes and statements following the table.
Table S4.13 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
|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 [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)|