Commonwealth Consolidated Regulations Commonwealth Consolidated Regulations(1) For the purposes of subsection 60D(1) of the Act, subregulation (2) specifies a requirement for all specified classes of Part 6A product in relation to a financial year (the assessment year ).
(2) The requirement is that:
(a) information available to APRA on 15 August in the financial year after the assessment year shows that either or both of the following conditions are met:
(i) the performance measure for the Part 6A product for the assessment year equals or exceeds - 0.005;
(ii) if the number of whole financial years in the lookback period for the Part 6A product in respect of the assessment year is less than 7--there is no determination in force under subregulation (4) that specifies the Part 6A product, the superannuation entity that offers the Part 6A product and the assessment year; or
(b) if APRA makes a determination under subregulation (7) specifying the Part 6A product, the superannuation entity that offers the Part 6A product and the assessment year--information available to APRA on the day specified in the determination shows that either or both of the conditions mentioned in paragraph (a) of this subregulation are met.
(3) The performance measure for a Part 6A product for a financial year is the amount calculated using the following formula:
where:
"actual RAFE" means the representative administration fees and expenses for the Part 6A product in relation to the financial year.
"actual return" means the actual return for the Part 6A product for the lookback period for the Part 6A product in respect of the financial year.
"benchmark RAFE" means the benchmark RAFE for the Part 6A product in relation to the financial year.
"benchmark return" means the benchmark return for the Part 6A product for the lookback period for the Part 6A product in respect of the financial year.
APRA's determination--subparagraph (2)(a)(ii)
(4) For the purposes of subparagraph (2)(a)(ii), APRA may make a determination, in writing, specifying:
(a) a Part 6A product; and
(b) the superannuation entity that offers the Part 6A product; and
(c) one or more financial years.
(5) In making the determination, APRA must consider whether any other Part 6A products that are offered by:
(a) the entity; or
(b) an associated entity (within the meaning of the Corporations Act 2001 ) of the entity;
have failed to meet the requirement in subsection 60D(1) of the Act in relation to any financial year.
(6) APRA must give a notice of the determination to the trustee of the superannuation entity specified in the determination. The notice must:
(a) be in writing; and
(b) include a copy of the determination.
APRA's determination--paragraph (2)(b)
(7) For the purposes of paragraph (2)(b), APRA may make a determination, in writing, specifying:
(a) a Part 6A product; and
(b) the superannuation entity that offers the Part 6A product; and
(c) a financial year; and
(d) a day occurring:
(i) after 15 August; and
(ii) on or before 31 August;
in the next financial year.
(8) APRA must give a notice of the determination to the trustee of the superannuation entity specified in the determination. The notice must:
(a) be in writing; and
(b) include a copy of the determination.
Hybrid platform TDP
(9) Subregulation (10) applies if the Part 6A product mentioned in subregulation (1) is a hybrid platform TDP.
(10) In applying subregulation (2) in relation to the hybrid platform TDP:
(a) work out 2 performance measures for the hybrid platform TDP, as follows:
(i) assume that the hybrid platform TDP were 2 separate Part 6A products;
(ii) assume that one of those separate products was a standard platform TDP, and had the characteristics of the hybrid platform TDP relating to it being offered through investment menus of the platform type;
(iii) assume that the other of those separate products was a trustee - directed product that was not a platform TDP, and had the characteristics of the hybrid platform TDP relating to it being offered through investment menus of the generic type, the lifecycle option type, or both (as the case may be);
(iv) work out the performance measures for the 2 separate Part 6A products in accordance with subregulation (3); and
(b) treat subparagraph (2)(a)(i) as reading "both performance measures for the Part 6A product for the assessment year equal or exceed - 0.005".