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

Schedule 2   Amendments relating to MySuper product dashboard and other measures

Corporations Regulations 2001

3   At the end of Subdivision 2E.1 of Division 2E of Part 7.9

Add:

7.9.07M Source of power for this Subdivision

This Subdivision is made for paragraphs 1017BA(1)(c) and (e) and subsection 1017BA(2) of the Act.

7.9.07N Definitions

In this Subdivision:

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.

7.9.07P Meaning of MySuper product dashboard reporting standards

For this Subdivision, 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.

7.9.07Q 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.

7.9.07R 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.

7.9.07S 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.

7.9.07T 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.

7.9.07U Comparison to be set out as a graph

(1) A product dashboard must set out a comparison mentioned in regulation 7.9.07T 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 subregulation (2) must be identified in accordance with the MySuper product dashboard reporting standards.

(4) In this regulation:

comparison period means the period mentioned in subregulation 7.9.07S(3) 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.

7.9.07V 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.

7.9.07W 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) For paragraph 1017BA(1)(c) of the Act, the period is 14 days after a change to the fees or other costs.