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Tuesday, 25 March 1997
Page: 2402


Senator KEMP (Assistant Treasurer)(5.26 p.m.) —We are discussing fees and charges and in relation to the matters you raised, I understand they are picked up under amendments Nos 9 and 11 to be moved by you. That is the issue that I understand is dealt with under those amendments.


Senator Sherry —Will you support them?


Senator KEMP —Let us get on with the debate, Senator. Let us deal with fees and charges first and then see how the debate runs.

For the Independent senators, I think the principles are that there is full disclosure. No-one is saying that people must charge fees; it is entirely up to the institution to decide what it does. We have mentioned that, for accounts under $1,000, there is protection available. We have also mentioned that these arrangements are similar to those enjoyed by superannuation funds.

Senator Sherry has raised the issue of award superannuation funds. In relation to the difference between RSAs and award superannuation funds, my point to you is that we are dealing with those under your amendments Nos. 9 and 11. I am not resiling from the debate, but I think the debate is probably better conducted at that time.


Senator Sherry —Minister, what do you mean by `full disclosure'? What would be the definition of that within the regulations?


Senator KEMP —They will have to disclose the structure of their fees and charges on the opening of accounts. They will have to disclose them annually. They will have to disclose them on exit.