Commonwealth Numbered Regulations

1995 No. 159 SUPERANNUATION INDUSTRY (SUPERVISION) REGULATIONS (AMENDMENT) - REG 21

21.1 After regulation 5.02, insert:
Meaning of "fair and reasonable"

"5.02A. (1) For the purposes of subregulation 5.02 (3), a distribution of
costs in relation to a fund is not fair and reasonable if, in respect of a
period that is, in relation to the fund, a good investment period, the trustee
of the fund applies administration costs (being administration costs that
would, but for the member-protection standards, be applied to erode the
minimum benefits of members of the fund to whom the member-protection
standards apply) in a way that erodes the benefits (other than the minimum
benefits) of those members.

"(2) For the purposes of subregulation (1), a period is a good investment
period in relation to a fund if the total administration costs that would be
charged to members of the fund but for regulation 5.17 is not greater than the
total investment return of the fund that would be credited to members of the
fund in respect of the period but for that regulation.".