ASIC releases policy on differential fee arrangements

Nick O’Neill, Clifford Chance, London

The Australian Securities and Investments Commission (‘ASIC’) has released its policy on differential fee arrangements in managed investment schemes. Australian Corporation Law requires that a responsible entity treat members of the same class equally. However, ASIC believes that this prohibits a responsible entity charging members of the same class different fees based on the characteristics of each member. The policy allows a responsible entity to charge different fees to members of the same class in deferent circumstances. Responsible entities will now be able to offer more transparent differential fee arrangements and individually negotiated fees to sophisticated members.