Corporations Regulations 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.9 - FINANCIAL PRODUCT DISCLOSURE AND OTHER PROVISIONS RELATING TO ISSUE AND SALE OF FINANCIAL PRODUCTS  

Division 5 - Ongoing requirements for product disclosure after person becomes a member  

Subdivision 5.6 - Fund information for retail clients for financial products that have an investment component: fund information for regulated superannuation funds and approved deposit funds  

REGULATION 7.9.37   SPECIFIC REQUIREMENTS IN PARTICULAR CASES  

7.9.37(1)    

Fund information includes all of the following, so far as they are applicable:

(a)    in respect of the relevant sub-plan or, if none, of the fund - the names of investment managers appointed by the trustee;

(b)    in the case of a standard employer-sponsored fund that is not a public offer superannuation fund and does not have a trustee approved under subsection 92(10) of the SIS Act:

(i) if the trustee of the fund is a body corporate, the name of that body corporate and the names of all its directors during the whole or any part of the reporting period and, in respect of each of those directors, details of how and by whom they were appointed;

(ii) if the trustees of the fund are individuals, the names of the trustees of the fund during the whole or any part of the relevant reporting period and, in respect of each of those trustees, details of how and by whom they were appointed;

(c)    in the case of a fund other than a fund mentioned in paragraph (b):

(i) the name of each corporate trustee of the fund during the relevant reporting period; and

(ii) in respect of the relevant policy committee (if any), details of the committee (including the names of the committee members as at the end of that reporting period and, in respect of each of the members, details of how and by whom they were appointed);

(d)    a statement as to whether or not any indemnity insurance has been taken out by the trustee;

(e) (Repealed)

(f)    in respect of the relevant sub-plan or, if none, of the fund - a statement of assets as at the end of:

(i) the relevant reporting period; and

(ii) the immediately preceding reporting period;

that includes all information that the responsible person reasonably believes a member would reasonably need to understand the asset allocation at those times;

(g)    details of:

(i) each investment that has a value in excess of 5% of the total assets of the relevant sub-plan or, if none, of the fund; and

(ii) each combination of investments that the trustee knows or ought reasonably to know are invested in, directly or indirectly, a single enterprise or single group of associated enterprises and that have a combined value in excess of 5% of the total assets of the relevant sub-plan or, if none, of the fund;

(h)    a statement regarding the fund ' s policy toward the use of derivative securities;

(i)    if the derivatives charge ratio of the fund (as defined in the SIS Regulations) exceeded 5% at any time during the reporting period:

(i) the derivatives charge ratio as at the end of the reporting period; and

(ii) the highest derivatives charge ratio attained during the reporting period; and

(iii) an explanation of why the derivatives charge ratio exceeded 5%; and

(iv) an explanation of the meaning of derivatives charge ratio in, or to the effect of the following:

" The derivatives charge ratio is the percentage of the total market value of the assets of the fund (other than cash) that the trustee has charged as security for derivatives investments made by the trustee. " ;

(j) (Repealed)

(k)    if the fund maintains reserves - in respect of the relevant sub-plan or, if none, of the fund, details of movements of reserves during the most recent reporting periods that, in total, constitute at least 3 years;

(l)    if the net earnings of the fund are allotted to members ' accounts - in respect of the relevant sub-plan or, if none, of the fund, the manner in which the allotment is made;

(m)    if the fund maintains reserves - in respect of the relevant sub-plan or, if none, of the fund, a description of the management strategy of the fund trustee in relation to the reserves, having regard to the requirements of paragraph 52(2)(g) of the SIS Act;

(n)    details of any penalties imposed on the responsible person under:

(i) section 38A of the SIS Act; or

(ii) section 182 of the RSA Act;

(o)    if the fund is:

(i) a defined benefit fund; and

(ii) the contributions paid by the employer-sponsor in the reporting period are less than the amount that an actuary has approved as sufficient contributions in that period; and

(iii) the difference is material;

in respect of the relevant sub-plan or, if none, of the fund - a statement to the effect that the matters stated in subparagraphs (ii) and (iii) apply, and statements of:

(iv) the consequences for the fund of the shortfall; and

(v) any action that the trustee has taken, or proposes to take, in relation to the matter;

(p)    the ultimate source (including, for example, the fund ' s reserves, the members ' accounts or the employer) from which payments in connection with superannuation contributions surcharges or advance instalments of surcharge will be drawn;

(q)    if there are circumstances in which the trustee would pay the member ' s benefit to an eligible rollover fund:

(i) details of those circumstances; and

(ii) the contact details of the eligible rollover fund; and

(iii) a statement of the effect of the payment of benefits to the eligible rollover fund.

7.9.37(1A)    

Subregulation (1) does not apply to a self managed superannuation fund. Fund information for a self managed superannuation fund includes the ultimate source (including, for example, the fund ' s reserves, the members ' accounts or the employer) from which payments in connection with superannuation contributions surcharges or advance instalments of surcharge will be drawn.

7.9.37(2)    
A nil amount need not be disclosed.

7.9.37(3)    
For subparagraph (1)(g)(ii), investments in a trust are taken not to be invested in the trustee of the trust.

7.9.37(4)    
(Repealed by SLI 2009 No 52, Sch 1 [ 5].)

7.9.37(5)    
(Repealed by FRLI No F2023L00990, Sch 1 [ 19] (effective 8 July 2023).)