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 5.2 - Periodic statements for retail clients for financial products that have an investment component: regulated superannuation funds, approved deposit funds and RSAs  

REGULATION 7.9.22   SPECIFIC REQUIREMENTS: CAPITAL GUARANTEED FUNDS AND RSAs  

7.9.22(1)   [ Requirements]  

For paragraph 1017D(5) (g) of the Act, and in addition to regulations 7.9.19 and 7.9.20 , a periodic statement for a member of a capital guaranteed fund must include the following details:


(a) a statement that outlines the means by which the fund is to be maintained as a capital guaranteed fund and sets out the name of the institution providing the investments that back the fund;


(b) a statement that outlines the effect of the lower-risk/lower-return nature of the product on possible benefits in the long term;


(c) a statement that the member may wish to consider:


(i) other superannuation arrangements that may provide a greater return over the long term; and

(ii) seeking advice on alternative investment arrangements that may be more suitable.

7.9.22(2)   [ Additional requirements for RSA holder]  

For paragraph 1017D(5) (g) of the Act, and in addition to regulation 7.9.19, a periodic statement for an RSA holder must include the following details:


(a) a statement that outlines the effect of the lower-risk/lower-return nature of the product on possible benefits in the long term;


(b) a suggestion that the RSA holder may wish to consider:


(i) other superannuation arrangements that may provide a greater return over the long term; and

(ii) seeking advice on alternative investment strategies that may be more suitable.


 

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