Superannuation Industry (Supervision) Regulations 1994

REGULATION 2.16A SPECIFIC REQUIREMENT IN RELATION TO CAPITAL GUARANTEED FUNDS  
2.16A(1)
The trustee of a capital guaranteed fund must give to each person who becomes a member of the fund each of the following items of information where applicable:

(a) the contact details of the fund;

(b) the name and ACN or ARBN of the trustee;

(c) a statement:

(i) that outlines the effect of the lower-risk/lower-return nature of the product on possible benefits in the long term; and

(ii) that there are other superannuation arrangements that may provide a greater return over the long term; and

(iii) that the person may wish to seek information about the rates of return of those superannuation arrangements;

(d) a statement that outlines the means by which the fund is to be maintained as a capital guaranteed fund and sets out the name of the institution providing the investments that back the fund;

(e) a brief statement on the benefits that the person may become entitled to on becoming a member of the fund;

(f) a brief statement of who may contribute to the fund;

(g) a brief statement of when benefits are payable;

(h) a brief statement of the taxation of the fund and benefits;

(i) if a fixed-rate option is, or fixed-rate options are, offered by the fund in relation to the whole, or a part, of the benefits - a statement of the prescribed earning rate of each fixed-rate option and the term to which that prescribed earning rate applies;

(j) if a variable-rate option is, or variable-rate options are, offered by the fund in relation to the whole, or a part, of the benefits:

(i) a statement that the earning rate, or earning rates, may increase or decrease over time; and

(ii) the actual or notional net earning rate for the same class of, or similar, options offered by the fund for each year of the previous 5 years; and

(iii) the compound average of the annual actual or notional rate of net earnings for the same class of, or similar, options offered by the fund for each year of the previous 5 years; and

(iv) a statement that past earning rates are not an indicator of future earning rates;

(k) a summary of fees and charges that may be charged directly to the fund;

(l) a brief statement about the effect of the member-protection standards;

(m) if fees and charges are deducted before earnings are credited to the fund - a statement to the effect that earnings are credited net of all expenses;

(n) details (in summary form) of arrangements that the fund has to deal with inquiries or complaints;

(o) details of the existence and (in outline terms) the functions of the Superannuation Complaints Tribunal;

(p) a copy, or an updated version, of the information required to be given under Subdivision 2.4.3, that was most recently given to members of the fund;

(q) a statement of the circumstances in which the trustee will pay the member's benefits to an eligible rollover fund, the effect of that payment and the contact details of the eligible rollover fund;

(r) a statement that further information is available on request.
2.16A(2)
If a variable-rate option has not been in existence for 5 years, the references in subparagraphs (1)(j)(ii) and (iii) to 5 years are taken to be references to the whole period of existence of the option.

2.16A(3)
The information mentioned in subparagraphs (1)(j)(ii) and (iii) must not have been first published or issued by the fund more than 15 months before the date the information is given to the person.

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History

Reg 2.16A inserted by SR No 117 of 1997.