Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Act 2012 (171 of 2012)

Schedule 3   Collection and disclosure of information

Part 1   Amendments

Corporations Act 2001

8   After section 1017B

Insert:

1017BA Trustees of regulated superannuation funds - obligation to make product dashboard publicly available

(1) The trustee, or the trustees, of a regulated superannuation fund that has 5 or more members must ensure:

(a) that a product dashboard for each of the fund's MySuper products and choice products is publicly available at all times on the fund's website; and

(b) that each product dashboard sets out the information required by subsection (2) or (3); and

(c) that the information set out in each product dashboard about the average amount of fees and other costs is updated within 14 days after the end of each quarter; and

(d) that the other information set out in each product dashboard is updated within 14 days after any change to the information; and

(e) if the regulations prescribe the way in which information is to be set out in a product dashboard - that each product dashboard sets out the information in accordance with the regulations.

(2) The product dashboard for a MySuper product must set out the following:

(a) the investment return target for the product;

(b) the number of times the current target has been achieved for the product:

(i) in the last 10 financial years; or

(ii) if the MySuper product has been offered for a period of less than 10 financial years - in each of the financial years in which the MySuper product has been offered;

(c) the level of investment risk that applies to the product;

(d) a statement about the liquidity of members' investments in the MySuper product;

(e) the average amount of fees and other costs in relation to the MySuper product during the last quarter, expressed as a percentage of the assets of the fund attributable to the MySuper product.

(3) Subject to subsection (4), the product dashboard for a choice product must set out the following for each investment option offered within the choice product:

(a) the investment return target for the investment option;

(b) the number of times the current target has been achieved for the investment option:

(i) in the last 10 financial years; or

(ii) if the investment option has been offered for a period of less than 10 financial years - in each of the financial years in which the investment option has been offered;

(c) the level of investment risk that applies to the investment option;

(d) a statement about the liquidity of members' investments in the investment option;

(e) the average amount of fees and other costs in relation to the investment option during the last quarter, expressed as a percentage of the assets of the fund attributable to the investments in that option.

(4) Subsection (3) does not apply to an investment option within a choice product if:

(a) the assets of the fund that are invested under the option are invested only in one or more of the following:

(i) a life policy under which contributions and accumulated earnings may not be reduced by negative investment returns or any reduction in the value of assets in which the policy is invested;

(ii) a life policy under which the benefit to a member (or a relative or dependant of a member) is based only on the realisation of a risk, not the performance of an investment;

(iii) an investment account contract the only beneficiaries of which are a member, and relatives and dependants of a member; or

(b) the sole purpose of the investment option is the payment of a pension to members who have satisfied a condition of release of benefits specified in a standard made under paragraph 31(2)(h) of the Superannuation Industry (Supervision) Act 1993; or

(c) the assets of the fund that are invested under the option are invested only in another single asset.

(5) In this section:

choice product has the same meaning as in the Superannuation Industry (Supervision) Act 1993.

fee , in relation to a MySuper product or a choice product offered by a regulated superannuation fund, means a fee (other than an activity fee, an advice fee or an insurance fee within the meaning of the Superannuation Industry (Supervision) Act 1993) that may be charged by the trustee, or the trustees, of the regulated superannuation fund in relation to the product under that Act.

investment account contract has the same meaning as in the Life Insurance Act 1995.

life policy has the same meaning as in the Life Insurance Act 1995.

member , in relation to a regulated superannuation fund, has the same meaning as in the Superannuation Industry (Supervision) Act 1993.

MySuper product has the same meaning as in the Superannuation Industry (Supervision) Act 1993.

pension has the same meaning as in the Superannuation Industry (Supervision) Act 1993.

quarter has the same meaning as in the Superannuation Industry (Supervision) Act 1993.

regulated superannuation fund has the same meaning as in the Superannuation Industry (Supervision) Act 1993.

1017BB Trustees of registrable superannuation entities - obligation to make information relating to investment of assets publicly available

(1) The trustee, or the trustees, of a registrable superannuation entity (other than a pooled superannuation trust) must make the following information publicly available on the entity's website no later than 90 days after each reporting day:

(a) information that is sufficient to identify each of the financial products or other property in which assets, or assets derived from assets, of the entity are invested, at the end of the reporting day;

(b) the value of the assets, or assets derived from assets, of the entity, at the end of the reporting day, that are invested in each of the financial products or other property.

(2) Information made publicly available under subsection (1) in respect of a reporting day must continue to be made publicly available on the registrable superannuation entity's website until information relating to the next reporting day is made publicly available under subsection (1).

(3) If the regulations prescribe the way in which information made publicly available under subsection (1) must be organised, the information must be organised in accordance with the regulations.

(4) The regulations may provide that investment in a financial product or other property is not a material investment in circumstances prescribed by the regulations.

(5) If regulations are made for the purposes of subsection (4), information relating to the investment of a financial product or other property in the prescribed circumstances is not required to be made publicly available under subsection (1).

(6) In this section:

reporting day means 30 June and 31 December each year.

1017BC Obligations relating to investment of assets of registrable superannuation entities - general rule about giving notice and providing information

(1) This section applies if:

(a) a person (the first party ) enters into an arrangement with another person (the second party ); and

(b) under the terms of the arrangement, the first party acquires a financial product from the second party; and

(c) the first party acquires the financial product in this jurisdiction; and

(d) the first party knows, or reasonably ought to know, that an asset that is the subject of the arrangement is, or is derived from, an asset of a registrable superannuation entity; and

(e) the arrangement is not of a kind prescribed by the regulations as an arrangement to which this section does not apply.

Obligation of first party

(2) The first party must, at the time the arrangement is entered into, notify the second party of the following:

(a) that an asset that is the subject of the arrangement is, or is derived from, the assets of a registrable superannuation entity;

(b) details of the trustee, or the trustees, of the registrable superannuation entity.

Obligations of second party

(3) If the second party is notified by the first party in accordance with subsection (2), the second party must provide the trustee, or the trustees, of the registrable superannuation entity with information about:

(a) the financial product acquired by the first party; and

(b) if the second party knows, or reasonably ought to know, that:

(i) an asset about which the second party was notified by the first party will be used, by the second party or another person, to acquire another financial product - that financial product; or

(ii) an asset about which the second party was notified by the first party will be used, by the second party or another person, to acquire property other than a financial product - that other property;

sufficient to allow the trustee, or the trustees, of the registrable superannuation entity to satisfy the obligation under section 1017BB.

Obligation of agent of first party

(4) If the financial product is acquired in this jurisdiction on behalf of the first person by a person (the agent ) other than a person who is the provider or acquirer under a custodial arrangement:

(a) the agent must notify the second party in accordance with subsection (2) on behalf of the first party; and

(b) if the agent so notifies the second party, the first party is taken to have satisfied the obligation under that subsection.

Definitions

(5) In this section:

acquirer , in relation to a custodial arrangement, has the same meaning as in subsection 1012IA(1).

custodial arrangement has the same meaning as in subsection 1012IA(1).

provider , in relation to a custodial arrangement, has the same meaning as in subsection 1012IA(1).

1017BD Obligations relating to investment of assets of registrable superannuation entities - giving notice to providers under custodial arrangements

(1) This section applies if:

(a) a person (the first party ) enters into an arrangement (the core arrangement ) with another person (the second party ); and

(b) under the terms of the core arrangement, the second party is the provider under a custodial arrangement under which the first party is a client; and

(c) the first party knows, or reasonably ought to know that, under the custodial arrangement, a financial product may be acquired in this jurisdiction; and

(d) the first party knows, or reasonably ought to know, that an asset that is the subject of the core arrangement is, or is derived from, an asset of a registrable superannuation entity; and

(e) the core arrangement is not of a kind prescribed by the regulations as an arrangement to which this section does not apply.

(2) The first party must, at the time the core arrangement is entered into, notify the second party of the following:

(a) that an asset that is the subject of the core arrangement is, or is derived from, the assets of a registrable superannuation entity;

(b) details of the trustee, or the trustees, of the registrable superannuation entity.

Note: Section 1017BC may apply in relation to an arrangement under which the second party, or an acquirer under the custodial arrangement, actually acquires the financial product.

(3) In this section:

acquirer , in relation to a custodial arrangement, has the same meaning as in subsection 1012IA(1).

client , in relation to a custodial arrangement, has the same meaning as in subsection 1012IA(1).

custodial arrangement has the same meaning as in subsection 1012IA(1).

provider , in relation to a custodial arrangement, has the same meaning as in subsection 1012IA(1).

1017BE Obligations relating to investment of assets of registrable superannuation entities - giving notice to acquirers under custodial arrangements

(1) This section applies if:

(a) a person (the first party ) enters into an arrangement (the core arrangement ) with another person (the second party ); and

(b) under the terms of the core arrangement, the second party is the acquirer in relation to a custodial arrangement under which the first party is the provider; and

(c) the first party knows, or reasonably ought to know that, under the core arrangement, the second party may acquire a financial product in this jurisdiction; and

(d) the first party knows, or reasonably ought to know, that an asset that is the subject of the core arrangement is, or is derived from, an asset of a registrable superannuation entity; and

(e) the core arrangement is not of a kind prescribed by the regulations as an arrangement to which this section does not apply.

(2) The first party must, at the time the core arrangement is entered into, notify the second party of the following:

(a) that an asset that is the subject of the core arrangement is, or is derived from, the assets of a registrable superannuation entity;

(b) details of the trustee, or the trustees, of the registrable superannuation entity.

Note: Section 1017BC may apply in relation to an arrangement under which the second party actually acquires the financial product.

(3) In this section:

acquirer , in relation to a custodial arrangement, has the same meaning as in subsection 1012IA(1).

custodial arrangement has the same meaning as in subsection 1012IA(1).

provider , in relation to a custodial arrangement, has the same meaning as in subsection 1012IA(1).