Corporations Amendment Regulations 2009 (No. 3) (52 of 2009)

Schedule 1   Amendments

[3]   After regulation 7.9.20

insert

7.9.20AA Specific requirements for certain periodic statements: superannuation funds (other than self managed superannuation funds) - long-term returns

(1) For paragraph 7.9.20 (1) (n), this regulation sets out requirements that apply to a trustee of a regulated superannuation fund (other than a self managed fund).

Requirements from 1 July 2009 until 30 June 2010

(2) The trustee must provide to each member of the regulated superannuation fund, in or with the periodic statement for a reporting period that is provided during the period starting on 1 July 2009 and ending at the end of 30 June 2010:

(a) a statement of the long-term returns of the investment option in which the member is invested at the end of the reporting period, if the member is invested in an investment option; or

(b) a statement of the long-term returns of the sub-plan, or, if none, the fund in which the member holds an interest at the end of the reporting period.

(3) For paragraph (2) (a), the long-term returns must be stated as the compound average effective rate of net earnings of the investment option for the period of 5 years ending at the end of the last financial year or reporting period before the provision of the periodic statement.

(4) For paragraph (2) (b), the long-term returns must be stated as the compound average effective rate of net earnings of the sub-plan or fund for the period of 5 years ending at the end of the last financial year or reporting period before the provision of the periodic statement.

(5) If:

(a) the trustee provides the statement of long-term returns on an insert to the periodic statement; and

(b) the insert includes the long-term returns of investment options in which the member is not invested, as well as the long term returns of the investment option in which the member is invested;

the periodic statement must include a statement of which investment option the member is invested in.

(6) If the trustee provides the long-term returns in the periodic statement, the trustee must include in the periodic statement, near to the statement of long-term returns, a statement to the effect that the returns are not the returns of the member's investment in the investment option, sub-plan or fund.

(7) If the trustee provides the long-term returns on an insert to the periodic statement, the trustee must include in the periodic statement, and on the insert near to the statement of long-term returns, a statement to the effect that the returns are not the returns of the member's investment in the investment option, sub-plan or fund.

Requirements from 1 July 2010

(8) The trustee must provide the following, in the periodic statement for a reporting period that is provided from 1 July 2010, to each member of the regulated superannuation fund:

(a) if the member is invested in an investment option at the end of the reporting period - a statement of the long-term returns of the investment option;

(b) if the member is not invested in an investment option at the end of the reporting period - a statement of the long term returns of the sub-plan, or, if none, the fund in which the member holds an interest at the end of the reporting period.

(9) For paragraph (8) (a), the long-term returns must be stated as:

(a) the compound average effective rate of net earnings of the investment option for the period of 5 years ending at the end of the last financial year or reporting period before the provision of the periodic statement; and

(b) the compound average effective rate of net earnings of the investment option for the period of 10 years ending at the end of that financial year or reporting period.

(10) For paragraph (8) (b), the long-term returns must be stated as:

(a) the compound average effective rate of net earnings of the sub-plan or fund for the period of 5 years ending at the end of the last financial year or reporting period before the provision of the periodic statement; and

(b) the compound average effective rate of net earnings of the sub-plan or fund for the period of 10 years ending at the end of that financial year or reporting period.

(11) The trustee must include in the periodic statement, near to the statement of long-term returns, a statement to the effect that the returns are not the returns of the member's investment in the investment option, sub-plan or fund.

General requirements

(12) For subregulations (3), (4), (9) and (10), if the investment option, sub-plan or fund has been in operation for less than the 5-year or 10-year period to be reported on, the trustee must provide:

(a) the long-term return for the period in which the investment option, sub-plan or fund has been in operation; and

(b) the date on which the investment option, sub-plan or fund came into operation.

(13) If the long-term returns are provided in the periodic statement, they must be positioned near to the statement of the rate of any allotment of earnings during the reporting period.

(14) The long-term returns must be presented in a clear, concise and effective manner.