Subject Title - INSETA

Disclosure must include the following:Any rebate arrangements and thereafter on a regular basis (at leastannually): Provided that where the rebate arrangement is initiallydisclosed in percentage terms, an example using actual monetaryamounts must be given and disclosure in specific monetary termsmust be made at the earliest reasonable opportunity thereafter.Provided further that for the purposes of this subparagraph, „rebate‟means a discount on the administration, management or any otherfee that is passed through to the client, whether by reduced fees, thepurchase of additional investments or direct payment, and that theterm „rebate‟ must be used in the disclosure concerned, to describeany arrangement complying with this definition, and the disclosuremust include an explanation of the arrangement in line with thisdefinition.Any platform fee arrangements, which may be disclosed by informingthe client that a platform fee of up to a stated percentage may bepaid by the product supplier to the administrative financial servicesprovider concerned, rather than disclosing the actual monetaryamount.Provided that, „platform fee‟ means a payment by a product supplierto an administrative financial services provider for the administrationand/or distribution and/or marketing cost savings represented by thedistribution opportunity presented by the administrative platform,and may be structured as a stipulated monetary amount or a volumebased percentage of assets held on the platform, and that the term„platform fee‟ must be used in the disclosure concerned, to describeany arrangement complying with this definition, and the disclosuremust include an explanation of the arrangement in line with thisdefinition.Where the specific structure of the product entails other underlyingfinancial products, disclosure must be made in such a manner thatthe client can determine the net investment amount ultimatelyinvested for the benefit of the client; 63Details of any special terms or conditions, exclusions of liability,waiting periods, loadings, penalties, excesses, restrictions orcircumstances in which benefits will not be provided and details ofguaranteed minimum benefits or other guarantees. 64Is the product readily realisable or the funds accessible and any63 Section 7(1)(c)(iii)(bb)(E) of the General Code64 Section 7(1)(c)(vii) of the General Code142 © INSETA - Section 1 12a