COLL S5.13 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 S5.13 illustrating the effect of charges and expenses, together with the notes and statements following the table.

Table S5.13 Charges and expenses for the REIT

One-off charges taken before or after you invest
Entry charge [insert percentage]%1
Exit charge [insert percentage]%11
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 REIT over a year
Ongoing charges [insert percentage]%2
 
Charges taken from the REIT under certain specific conditions
Performance fees [insert percentage]% a year of any returns the REIT 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.
(4) For a REIT that holds an immovable through an intermediate holding vehicle or vehicles—a warning that the timing of distributions of income may depend on the law of the jurisdiction where the vehicle or vehicles are established.
Inserted by QFCRA RM/2016-1 (as from 19th September 2016)