Superannuation Legislation Amendment (MySuper Measures) Regulation 2013 (155 of 2013)

Schedule 3  

Corporations Regulations 2001

1   At the end of Part 6A of Schedule 10A

Add:

6A.2 Paragraph 1017BA(1)(c)

Repeal the paragraph, substitute:

(c) that the information set out in each product dashboard about fees and other costs is updated in accordance with subsection 1017GAI(4); and

6A.3 Paragraph 1017BA(1)(e)

Repeal the paragraph.

6A.4 Subsection 1017BA(2)

Repeal the subsection, substitute:

(2) The product dashboard for a MySuper product must set out and work out the following information in accordance with Division 3AA:

(a) a return target or return targets for the product;

(b) a return or returns for the product;

(c) a comparison or comparisons between return targets and returns for the product;

(d) the level of investment return that applies to the product;

(e) a statement of fees and other costs in relation to the product.

6A.5 After Division 3

Insert:

Division 3AA - Obligation to make product dashboard publicly available

1017GAA Definitions

In this Division:

lifecycle exception has the meaning given by subsection 29TC(2) of the SIS Act.

lifecycle MySuper product means a MySuper product to which a lifecycle exception applies.

lifecycle stage , of a MySuper product offered by a regulated superannuation fund, means a subclass of members of the fund who hold the MySuper product, determined on the basis of:

(a) age; or

(b) age and the factors mentioned in regulation 9.47 of the SIS Regulations.

offering period means:

(a) for a MySuper product other than a lifecycle MySuper product:

(i) if the MySuper product has been offered for less than 10 financial years and there is no predecessor product - the number of whole financial years for which the product has been offered; or

(ii) if the MySuper product and a predecessor product have been offered for a total of less than 10 financial years - the number of whole financial years for which the products have been offered; or

(b) for a lifecycle stage of a lifecycle MySuper product:

(i) if the lifecycle stage of the MySuper product has been offered for less than 10 financial years and there is no equivalent lifecycle stage of a predecessor product - the number of whole financial years for which the lifecycle stage has been offered; or

(ii) if the lifecycle stage of the MySuper product and an equivalent lifecycle stage of a predecessor product have been offered for a total of less than 10 financial years - the number of whole financial years for which the lifecycle stage of the MySuper product and the predecessor product have been offered.

predecessor product , in relation to a MySuper product, means a default investment option in existence on 30 June 2013 in relation to which, if a member’s accrued default amount were attributed to the MySuper product, the RSE licensee would be exempted from disclosure requirements under subregulation 9.46(2) of the SIS Regulations.

reporting standard means a reporting standard determined by APRA under subsection 13(1) of the Financial Sector (Collection of Data) Act 2001, as in force from time to time.

1017GAB Meaning of MySuper product dashboard reporting standards

For this Division, a reporting standard is a MySuper product dashboard reporting standard if the reporting standard contains a clause stating that it relates to information that will be included in a product dashboard for a MySuper product.

1017GAC Product dashboard - how information must be set out

(1) Information for a MySuper product must be set out in a product dashboard as follows (including the headings):

(2) For a lifecycle MySuper product, the information mentioned in each item of the table must be set out in relation to each lifecycle stage of the product.

1017GAD Product dashboard - return target

(1) The return target for a MySuper product other than a lifecycle MySuper product must be worked out in accordance with the MySuper product dashboard reporting standards.

(2) The return target for a lifecycle MySuper product must be worked out in relation to each lifecycle stage of the product in accordance with the MySuper product dashboard reporting standards.

(3) The period in relation to which the return target must be worked out is the period of 10 years starting at the beginning of the current financial year.

1017GAE Product dashboard - return

MySuper product other than lifecycle MySuper product

(1) The return for a MySuper product other than a lifecycle MySuper product must be worked out in accordance with the MySuper product dashboard reporting standards.

(2) The period in relation to which the return must be worked out is:

(a) the last 10 whole financial years, if:

(i) the MySuper product has been offered for at least 10 financial years; or

(ii) the MySuper product and a predecessor product have been offered for a total of at least 10 financial years; or

(b) the offering period.

Lifecycle MySuper product

(3) The return for a lifecycle MySuper product must be worked out in relation to each lifecycle stage of the product in accordance with the MySuper product dashboard reporting standards.

(4) The period in relation to which the return in relation to a lifecycle stage of a lifecycle MySuper product must be worked out is:

(a) the last 10 whole financial years, if:

(i) the lifecycle stage of the MySuper product has been offered for at least 10 financial years; or

(ii) the lifecycle stage of the MySuper product and an equivalent stage of a predecessor product have been offered for a total of at least 10 financial years; or

(b) the offering period.

1017GAF Product dashboard - comparison between return target and return

MySuper product other than lifecycle MySuper product

(1) The comparison between the return target and the return for a MySuper product other than a lifecycle MySuper product must be worked out in accordance with the MySuper product dashboard reporting standards.

(2) The period in relation to which the comparison must be worked out is:

(a) the last 10 whole financial years, if:

(i) the MySuper product has been offered for at least 10 financial years; or

(ii) the MySuper product and a predecessor product, or a lifecycle stage have been offered for a total of at least 10 financial years; or

(b) the offering period.

Lifecycle MySuper product

(3) The comparison between the return target and the return for a lifecycle MySuper product must be worked out in relation to each lifecycle stage of the product in accordance with the MySuper product dashboard reporting standards.

(4) The period in relation to which the comparison in relation to a lifecycle stage of a MySuper product must be worked out is:

(a) the last 10 whole financial years, if:

(i) the lifecycle stage of the MySuper product has been offered for at least 10 financial years; or

(ii) the lifecycle stage of the MySuper product and an equivalent stage of a predecessor product have been offered for a total of at least 10 financial years; or

(b) the offering period.

1017GAG Comparison to be set out as a graph

(1) A product dashboard must set out a comparison mentioned in section 1017GAF as a graph.

(2) The graph must contain:

(a) a column representing the return for each year in the comparison period; and

(b) a line representing the moving average return target for the comparison period; and

(c) a line representing the moving average return for the comparison period.

(3) The column and the lines mentioned in subsection (2) must be identified in accordance with the MySuper product dashboard reporting standards.

(4) In this section:

comparison period means the period mentioned in subsection 1017GAF(2) or (4) that is applicable in the circumstances.

moving average return has the meaning given by the MySuper product dashboard reporting standards.

moving average return target has the meaning given by the MySuper product dashboard reporting standards.

1017GAH Product dashboard - level of investment risk

(1) The level of investment risk for a MySuper product other than a lifecycle MySuper product must be worked out in accordance with the MySuper product dashboard reporting standards.

(2) The level of investment risk for a lifecycle MySuper product must be worked out in relation to each lifecycle stage of the product in accordance with the MySuper product dashboard reporting standards.

(3) The level of investment risk must be expressed using the relevant risk label set out in the MySuper product dashboard reporting standards.

(4) The period in relation to which the level of investment risk must be worked out is the current financial year.

1017GAI Product dashboard - statement of fees and other costs

(1) The statement of fees and other costs for a MySuper product other than a lifecycle MySuper product must be worked out in accordance with the MySuper product dashboard reporting standards.

(2) The statement of fees and other costs for a lifecycle MySuper product must be worked out in relation to each lifecycle stage of the product in accordance with the MySuper product dashboard reporting standards.

(3) The period in relation to which the statement of fees and other costs must be worked out is the current financial year.

(4) Information set out in a product dashboard about fees and other costs must be updated within 28 days after a change to the fees or other costs.