Understanding the Operational Risk Financial Requirement fee (ORFR fee)

As Trustee, Macquarie Investment Management Limited (MIML) has regulatory obligations to maintain adequate financial resources to address losses arising from operational risks that may affect the Fund. This requirement is known as the Operational Risk Financial Requirement (ORFR). MIML meets these obligations by holding trustee capital which is funded by shareholder capital and MIML’s retained earnings.
  
For further information on reserves, see Understanding the superannuation fund reserve.

The ORFR fee is currently paid from the Fund’s existing reserves rather than debited from members accounts. There is no immediate impact to clients' accounts. The ORFR fee doesn’t appear in members’ cash transactions and won't for as long as the ORFR fee is paid from the Fund’s reserves.

When the Fund’s reserves can no longer cover the full amount of the ORFR fee on behalf of members, advance notice will be communicated to you and members to alert them that the ORFR fee will begin to be charged to their Cash Hubs. This amount will be debited from accounts during our normal fee processing.

Maintaining an ORFR has associated costs. To ensure the sustainability of the Fund, continued focus on platform development and improving member outcomes, MIML has decided to charge an ORFR fee which it is entitled to do under the Fund’s trust deed. The 0.03% ORFR fee is to cover these costs.

The ORFR fee is calculated monthly on the daily closing balance of each account. This will be paid by a deduction from:

1. in the first instance, the Fund’s reserves; and
2. where the Fund’s reserves are not sufficient to cover part or all of the ORFR fee, from members’ Cash Hubs, generally in the first week of the month after the fees accrue or upon closure of an account.