Commission Structure for Fees Received by DBS Bank
from Asset Management Companies (AMCs) on Equity Schemes

DBS Bank operates a comprehensive and transparent commission framework for the equity investment schemes it distributes on behalf of external Asset Management Companies (AMCs). The structure aligns the interests of all parties the bank, the AMCs, and ultimately the investors while complying with regulatory requirements set out by the Monetary Authority of Singapore (MAS) and other relevant authorities.

1. Overview of Equity Schemes

Equity schemes include unit trusts, mutual funds, exchangetraded funds (ETFs), and discretionary portfolio management services that invest primarily in listed equities. These products are offered through DBSs retail, private banking, and institutional channels.

2. Types of Fees Collected by DBS

• Distribution Fees (FrontEnd Load) A onetime charge applied at the point of purchase.
• Service Fees (Ongoing/Management Fees) Charged periodically (monthly/quarterly) for account maintenance, reporting and client support.
• Performance Fees Paid only when the scheme outperforms a predefined benchmark.
• Redemption Fees (BackEnd Load) Levied when investors sell units within a specified period.
• Advisory/Consultancy Fees Charged for tailored investment advice on discretionary accounts.

3. Commission Allocation Model

Fees received from investors are split between the AMC and DBS based on the following allocation matrix. The exact percentage varies by product, distribution channel, and the negotiated agreement with the AMC.

4. Factors Influencing the Commission Rate

1. Product Complexity Structured or sectorspecific equity funds command higher commissions due to additional research and marketing effort.
2. Distribution Channel Private banking and wealth management channels often receive a larger share than massmarket retail channels because of the customized service level.
3. Volume of Assets Under Management (AUM) Larger AUM can attract scalebased discounts, reducing the overall commission percentage.
4. Tenure of Relationship Longstanding partnerships with AMCs may negotiate more favourable terms.
5. Regulatory Caps MAS guidelines set maximum allowable commissions for certain retail products; DBS adheres strictly to these caps.

5. Transparency & Disclosure Practices

DBS is committed to full transparency. The following disclosures are provided to investors at the point of entry and in periodic statements:

• Breakdown of all fees and commissions paid to DBS and the AMC.
• Calculation methodology for performance and redemption fees.
• Estimated total expense ratio (TER) of the fund.
• Any changes in fee structure with a minimum 30day advance notice.

6. Regulatory Framework

All commission arrangements comply with:

• MAS Guidelines on Product Disclosure and Advisory Services (PDAS).
• The Securities and Futures Act (SFA) ensuring no conflicts of interest.
• International standards such as the Financial Conduct Authority (FCA) Conduct of Business Sourcebook for crossborder funds.

7. Example Illustration

Assume an investor purchases a unit trust with a 3% frontend load. The agreed commission split is 20% to DBS and 80% to the AMC.

• Investment amount: SGD 100,000
• Frontend load charged: 3% = SGD 3,000
• DBS commission: 20% of SGD 3,000 = SGD 600
• AMC receives: SGD 2,400

The investors net investment becomes SGD 97,000, and the fee is fully disclosed in the offering document.

8. Review & Revision Process

Commission structures are reviewed semiannually. Adjustments may be made based on market conditions, changes in regulatory expectations, or feedback from investors and AMCs.

9. Contact Information

For detailed fee schedules, partnership inquiries, or clarification on any of the points above, please reach out to the DBS Equity Distribution Team:

• Email: equiproducts@dbs.com
• Phone: +65 6225 3788
• Office: DBS AsiaPacific Headquarters, 12 Marina Boulevard, Level 30, Singapore 018982

DBS Bank remains dedicated to delivering valueadded investment solutions while maintaining the highest standards of fairness and transparency.