Superannuation Industry (Supervision) Regulations 1994

PART 9AB - ANNUAL PERFORMANCE ASSESSMENTS ETC.  

Division 9AB.1 - Preliminary  

REGULATION 9AB.2   MEANING OF PART 6A PRODUCT - TRUSTEE-DIRECTED PRODUCTS  

9AB.2(1)    

For the purposes of paragraph 60B(b) of the Act, trustee-directed products are identified as a class of beneficial interest in a regulated superannuation fund.

9AB.2(2)    
A class of beneficial interest in a regulated superannuation fund is a trustee-directed product in the fund if:

(a)    

at least one of the beneficial interests in the class is not a superannuation interest (within the meaning of the 1997 Tax Act) that supports a superannuation income stream that is in the retirement phase; and

(b)    the investment strategy, for the class of beneficial interest, of the trustee of the fund:

(i) requires the class of beneficial interest to have strategic asset allocations to more than one covered asset class; and

(ii) if there are only 2 such strategic asset allocations - requires each of those strategic asset allocations (expressed as a percentage) to the class of beneficial interest to exceed 10%; and

(c)    a beneficiary of the fund cannot require any trustee of the fund to alter an amount attributable to the beneficiary to be invested in a particular covered asset class; and

(d)    none of the exceptions in subregulations (5) , (6) and (7) applies.

9AB.2(3)    

For the purposes of paragraph (2)(b) , in determining a strategic asset allocation to a covered asset class, assume that the class of beneficial interest is a standard Part 6A product.

9AB.2(4)    
For the purposes of subparagraph (2)(b)(i) , treat 2 covered asset classes for a quarter as being one covered asset class for the quarter if the only difference between the descriptions of those classes in the table in regulation 9AB.17 relating to the quarter is that:

(a)    the description of one of those classes contains the word " hedged " ; and

(b)    the description of the other class contains the word " unhedged " .

9AB.2(4A)    

Despite subregulation (4) , for the purposes of subparagraph (2)(b)(i) , treat the covered asset classes for a quarter listed in each of the following paragraphs as each being one covered asset class for the quarter:

(a)    the covered asset classes identified in items 2, 3, 4, 5, 6 and 7 of the table in regulation 9AB.17 ;

(b)    the covered asset classes identified in items 16, 17 and 18 of that table;

(c)    the covered asset classes identified in items 19, 20 and 21 of that table;

(d)    the covered asset classes identified in items 24, 25 and 26 of that table.

Exceptions

9AB.2(5)    
The exception in this subregulation applies if all the members of the fund who hold the class of beneficial interest in the fund are defined benefit members.

9AB.2(6)    
The exception in this subregulation applies if the assets of the fund that are invested in respect of the class of beneficial interest are invested only in one or more of the following:

(a)    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;

(b)    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;

(c)    an investment account contract the only beneficiaries of which are a member, and relatives and dependants of a member.

9AB.2(7)    
The exception in this subregulation applies if:

(a)    the trustee of the fund does not engage in any activity relating to the management of investments in respect of the class of beneficial interest; and

(b)    each entity that manages investments in respect of the class of beneficial interest is not a connected entity in relation to the trustee of the fund; and

(c)    the trustee of the fund does not engage in any activity relating to setting of strategic asset allocations to the class of beneficial interest; and

(d)    each entity that sets strategic asset allocations to the class of beneficial interest is not a connected entity in relation to the trustee of the fund.