Changes to Terms and Conditions

• the Client Custody Agreement Terms and Conditions;
• the terms and conditions that formed part of your Opening a FIIG Client Account form; and
• the Terms and Conditions of Dealing with FIIG Securities Limited set out in FIIG’s Financial Services Guide.

Some of these changes will take effect on and from 1 July 2015.

The following is a brief summary of the changes:

(a)   Introduction of new fees

For new custodial accounts established after 30 June 2015, new fees described below will be payable from 1 July 2015.  However, for existing custodial accounts (ie accounts that have been established under the current Terms and Conditions prior to 1 July 2015):

• the fees changes to the Terms and Conditions will not take effect on 1 July, but will be effective on and from 31 October 2015; and
• these fees will be waived until 1 January 2016 and only incurred from then onwards.

The new fees are as follows:

• A Custody Service Fee will be calculated daily on the aggregate value of the investments held in for you in custody with FIIG.  Charged monthly, this fee will be calculated on the following basis:

• 0.20% p.a. for the first $500,000
• 0.14% p.a. for the next $1.5m
• 0.09% p.a. for the next $3m
• 0.06% p.a. for amounts over $5m

• The Custody Service Fee is subject to a minimum monthly fee of:
  - $20 if you have nominated an existing Macquarie CMA or elected to establish a new FIIG Funding Account held in your FIIG account name with Macquarie Bank; or
  - $30 if you have not elected to have a Macquarie CMA as your FIIG Funding Account.

• If there are insufficient funds in your nominated FIIG Funding Account at the time FIIG seeks payment in accordance with the Terms and Conditions, a “dishonour fee” of $60 may be payable by you.

• If the direct debit of your nominated FIIG Funding Account fails for three consecutive months, you will be taken to have directed FIIG to recover the relevant fees and charges from distributions received in respect of the assets held for you in custody.

• An in specie transfer fee may be payable should you transfer assets held in custody with FIIG to another custodian. This fee will vary on a case by case basis according to the complexity of the transfer, and will be notified to you prior to the transfer occurring. However, the fee will not exceed $300 per series of security transferred.

All the fees described above are inclusive of GST.

The fees will be direct debited from your FIIG Funding Account, or any other account you nominate.

FIIG has benchmarked these fees against other custodial and administration service providers. We’ve endeavoured to minimise costs and keep fees to the lower end of the market.  And, again, these fees will not apply to existing accounts until 1 January 2016.

(b)   Changes to agreements with retail clients for regulatory purposes

As an Australian financial services licensee, FIIG is required to include certain provisions in the written agreement under which it provides a custodial or depository service to a person as a retail client.  FIIG has made a number of changes to the Terms and Conditions for the purposes of these new regulatory requirements.

Some of these changes will only apply to you if you are a retail client, and on or after 1 November 2015:

• the Terms and Conditions are further varied; and/or

• you establish a new custody account with FIIG.

(c)    Power for FIIG to novate or assign its rights and obligations to a related entity

The Terms and Conditions have been amended to provide FIIG with the ability to assign its rights or transfer its obligations to a related body corporate, or retire as custodian and appoint a related body corporate as its replacement, without seeking your agreement.