Commonwealth Consolidated Regulations Commonwealth Consolidated Regulations(1) This regulation applies to lifecycle Part 6A products.
(2) The actual return , for a Part 6A product for a lookback period for the product in respect of a financial year, is the amount calculated using the following formula, rounded to 10 decimal places (rounding up if the eleventh decimal place is 5 or more):
where:
"j" represents a lifestage of the Part 6A product, in a consecutive sequence of lifestages of the Part 6A product, where:
(a) if j=1, the lifestage is the lifestage that applies to the youngest beneficiaries who hold the product; and
(b) subject to paragraph (c), the sequence proceeds in ascending order of the ages of those beneficiaries; and
(c) if there are 2 or more lifestages of the Part 6A product that apply to beneficiaries of the same age--the sequence proceeds in respect of those lifestages in the order specified by APRA in a determination under regulation 9AB.15.
"J" means the number of lifestages of the Part 6A product.
"lifestage weight" , in relation to a lifestage and a quarter, means the Part 6A product's lifestage weight in relation to the quarter and the lifestage.
"n" means the number of quarters in the lookback period, divided by 4.
"return" , in relation to a quarter and a lifestage, means:
(a) if paragraph (b) does not apply--the Part 6A product's net investment return in relation to the quarter and the lifestage, for the Part 6A product's standard fees and costs arrangement in relation to the quarter; or
(b) if it is not possible to identify the Part 6A product's net investment return in relation to the quarter and the lifestage from information available to APRA, but it is possible to identify the Part 6A product's gross investment return net of fees in relation to the quarter and the lifestage from information available to APRA--the Part 6A product's gross investment return net of fees in relation to the quarter and the lifestage, for the Part 6A product's standard fees and costs arrangement in relation to the quarter.
"t" represents a quarter in a consecutive sequence of quarters, where if t=1, the quarter is the first quarter that starts in the lookback period.
(3) Subregulation (4) applies if:
(a) the following circumstances exist:
(i) a lifecycle Part 6A product has particular lifestages at the end of a quarter in a lookback period for the product in respect of a financial year;
(ii) the product has different lifestages at the end of a later quarter in the lookback period; and
(b) either or both of the following apply:
(i) the Part 6A product and the quarters are in a class of Part 6A products and quarters specified in a determination under subregulation (4A);
(ii) the Part 6A product and the quarters are specified in a determination under subregulation (5).
(4) Despite subregulation (2), the actual return , for the Part 6A product for the lookback period, is the amount calculated using the formula in subregulation (2), as modified in the way specified in the following determination:
(a) if only subparagraph (3)(b)(i) applies--the determination mentioned in that subparagraph;
(b) if only subparagraph (3)(b)(ii) applies--the determination mentioned in that subparagraph;
(c) if both subparagraphs (3)(b)(i) and (ii) apply--the determination mentioned in subparagraph (3)(b)(i).
(4A) For the purposes of subparagraph (3)(b)(i), APRA may, by legislative instrument, make a determination that:
(a) specifies classes of Part 6A products and quarters; and
(b) specifies modifications of the formula in subregulation (2) that APRA considers are reasonably necessary to reflect the circumstances mentioned in paragraph (3)(a) in respect of the specified classes of Part 6A products and quarters.
(5) For the purposes of subparagraph (3)(b)(ii), APRA may make a determination, in writing, that:
(a) specifies:
(i) a lifecycle Part 6A product; and
(ii) the superannuation entity that offers the Part 6A product; and
(iii) 2 quarters; and
(b) specifies modifications of the formula in subregulation (2) that APRA considers are reasonably necessary to reflect the circumstances mentioned in paragraph (3)(a) in respect of the specified Part 6A product and quarters.
(6) APRA must give a notice of a determination under subregulation (5) 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.