Commonwealth Consolidated Regulations Commonwealth Consolidated Regulations(1) This regulation applies to lifecycle Part 6A products.
(2) The benchmark 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:
"a" represents a covered asset class for the quarter, where the value of "a" corresponds to the number of the item of the table in regulation 9AB.17 relating to the quarter that identifies that covered asset class for the quarter.
Example: If a=2, then "a" represents the covered asset class identified in item 2 of the table in regulation 9AB.17 that relates to the quarter.
"A" means the number of covered asset classes identified in the table in regulation 9AB.17 that relates to the quarter.
"ART" , in relation to a covered asset class and a quarter, means the assumed rate of tax for the quarter for the covered asset class.
"fee" , in relation to a covered asset class and a quarter, means the assumed annual fee for the quarter for the covered asset class.
"index" , in relation to a covered asset class and a quarter, means the index of the covered asset class for the quarter.
"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.
"SAA" , in relation to a covered asset class, a lifestage and a quarter, means the Part 6A product's strategic asset allocation in relation to the lifestage and the quarter to the covered asset class for 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.
Lifecycle Part 6A products that report gross investment return net of fees
(3) Subregulation (4) applies in relation to a lifestage and a quarter if:
(a) it is not possible to identify the Part 6A product's net investment return in relation to the lifestage and the quarter from information available to APRA; but
(b) it is possible to identify the Part 6A product's gross investment return net of fees in relation to the lifestage and the quarter from information available to APRA.
(4) For the purposes of subregulation (2):
(a) treat ART , in relation to a covered asset class and the quarter, as being zero; and
(b) in working out index in relation to a covered asset class identified in item 24, 25 or 26 of the table in regulation 9AB.17 and the quarter by applying subregulation 9AB.5A(7), treat ART in that subregulation as being zero.
Change of lifestages
(8) Subregulation (9) 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 (9A);
(ii) the Part 6A product and the quarters are specified in a determination under subregulation (10).
(9) Despite subregulation (2), the benchmark return , for the Part 6A product for the lookback period for the product in respect of the year, is the amount calculated using the formula in subregulation (2), as modified in the way specified in the following determination:
(a) if only subparagraph (8)(b)(i) applies--the determination mentioned in that subparagraph;
(aa) if only subparagraph (8)(b)(ii) applies--the determination mentioned in that subparagraph;
(b) if both subparagraphs (8)(b)(i) and (ii) apply--the determination mentioned in subparagraph (8)(b)(i).
(9A) For the purposes of subparagraph (8)(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 (8)(a) in respect of the specified classes of Part 6A products and quarters.
(10) For the purposes of subparagraph (8)(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 (8)(a) in respect of the specified Part 6A product and quarters.
(11) APRA must give a notice of a determination under subregulation (10) 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.