Superannuation Industry (Supervision) Regulations 1994

PART 9AB - ANNUAL PERFORMANCE ASSESSMENTS ETC.  

Division 9AB.1 - Preliminary  

REGULATION 9AB.4A   MEANING OF REPRESENTATIVE ADMINISTRATION FEES AND EXPENSES OR RAFE  

9AB.4A(1)    
Representative administration fees and expenses or RAFE , for a Part 6A product in relation to a period, means the sum of the following:

(a)    the Part 6A product ' s administration fees and costs, and related tax expenses and benefits, in relation to the period under the Part 6A product ' s standard fees and costs arrangement in relation to the period as reported to APRA in accordance with the applicable investment performance standard and applicable RSE structure standard;

(b)    the Part 6A product ' s advice fees and costs, and related tax expenses and benefits, in relation to the period under that standard fees and costs arrangement.

9AB.4A(2)    
In working out an amount for the purposes of paragraph (1)(a) or (b) , assume that the amount related to a beneficiary of the entity offering the Part 6A product with an account balance in respect of the Part 6A product throughout the period of:

(a)    if paragraph (b) does not apply - $50,000;

(b)    if there is a minimum balance requirement to access the Part 6A product that is greater than $50,000 - that minimum balance.

Lifecycle Part 6A products

9AB.4A(3)    
Subregulations (4) to (6) apply if the Part 6A product is a lifecycle Part 6A product.

9AB.4A(4)    
Despite subregulation (1) , work out the representative administration fees and expenses or RAFE for the Part 6A product in relation to a period as follows:

(a)    first, work out each RAFE for the Part 6A product in relation to the period, in accordance with subregulation (1) , on the assumptions that:

(i) subregulation (1) applies separately in respect of each lifestage of the Part 6A product; and

(ii) in applying subregulation (1) to a lifestage, references in that subregulation to amounts reported to APRA were references to such amounts to the extent that they relate to that lifestage;

(b)    next, identify the largest of the RAFEs worked out under paragraph (a) .

9AB.4A(5)    
Subregulation (6) applies if:

(a)    the lifecycle Part 6A product has particular lifestages at the start of a financial year; and

(b)    at one or more times during the year, the product starts to have different lifestages.

9AB.4A(6)    
Despite subregulations (1) and (4) , work out the RAFE for the Part 6A product in relation to the year as follows:

(a)    first, divide the year into periods on the following basis:

(i) the first period starts at the start of the year;

(ii) a new period starts each time the product starts to have different lifestages;

(iii) the last period ends at the end of the year;

Note:

Each period, other than the last period, ends immediately before the first time after the start of that period at which there is a change of the lifestages.

(b)    next, work out the RAFE for the Part 6A product in relation to each period identified under paragraph (a) , in accordance with subregulation (4) ;

(c)    next, work out the sum of the RAFEs worked out under paragraph (b) .

Trustee-directed products

9AB.4A(7)    
Subregulations (8) and (9) apply if the Part 6A product is a trustee-directed product.

9AB.4A(8)    
Despite subregulations (1) to (6) , work out the representative administration fees and expenses or RAFE for the Part 6A product in relation to a period as follows:

(a)    first, work out each RAFE for the Part 6A product in relation to each quarter in the period, in accordance with those subregulations, on the assumptions that:

(i) those subregulations apply separately in respect of each investment pathway of the Part 6A product; and

(ii) in applying those subregulations in respect of an investment pathway, references in those subregulations to amounts reported to APRA were references to such amounts to the extent that they relate to that investment pathway;

(b)    next, multiply each RAFE identified under paragraph (a) in relation to a quarter and an investment pathway by the investment pathway weight for the investment pathway for the quarter (see subregulation (9) );

(c)    next, work out the sum of the results of paragraph (b) .

9AB.4A(9)    
The investment pathway weight of a Part 6A product for an investment pathway for a quarter is:

(a)    the market value at the end of the quarter of all member assets supporting the Part 6A product that are referable to the investment pathway;

divided by:

(b)    the market value at the end of the quarter of all member assets supporting the Part 6A product that are referable to an investment pathway of the Part 6A product.