Commonwealth Numbered Regulations

1997 No. 117 SUPERANNUATION INDUSTRY (SUPERVISION) REGULATIONS (AMENDMENT) - REG 9

9.1 Paragraphs 2.10 (1) (a) and (b): Omit the paragraphs, substitute:

"(a) subject to paragraph (c), in every case - the information specified in
subregulation (2); and

   (b)  subject to paragraph (c), additionally, in the case of a fund other
        than an excluded fund - the information specified in subregulation
        (3); and

   (c)  in the case of a capital guaranteed fund - either:

        (i)    the information specified in subregulations (2) and (3); or

        (ii)   the information specified in subregulation (3A).".

9.2 Subregulation 2.10 (2): Omit "(applicable to all funds)", substitute "and
subparagraph (1) (c) (i)".

9.3 Subregulation 2.10 (3): Omit "(applicable to funds other than excluded
funds)", substitute "and subparagraph (1) (c) (i)".

9.4 Paragraph 2.10 (3) (d): Omit "subregulation (4)", substitute
"subregulation (6)".

9.5 Subregulation 2.10 (3): Add at the end:

"; (m) in the case of a capital guaranteed fund that has chosen to comply with
subregulation (2) and this subregulation - a statement:

        (i)    that outlines the effect of the lower-risk/lower-return nature
               of the product on possible benefits in the long term; and

        (ii)   that there are other superannuation arrangements that may
               provide a greater return over the long term; and

        (iii)  that the person may wish to seek information about the rates of
               return of those superannuation arrangements; and

        (iv)   that outlines the means by which the fund is to be maintained
               as a capital guaranteed fund and sets out the name of the
               institution providing the investments that back the fund.".

9.6 After subregulation 2.10 (3), insert:

"(3A) The information referred to in subparagraph (1) (c) (ii) comprises each
of the following items of information where applicable:

   (a)  the contact details of the fund;

   (b)  the name and ACN or ARBN of the trustee;

   (c)  a statement:

        (i)    that outlines the effect of the lower-risk/lower-return nature
               of the product on possible benefits in the long term; and

        (ii)   that there are other superannuation arrangements that may
               provide a greater return over the long term; and

        (iii)  that the person may wish to seek information about the rates of
               return of those superannuation arrangements;

   (d)  if the governing rules of the fund meet the standards of subregulation
        1.06 (4) - a statement that:

        (i)    the amount that the person can take out each year is subject to
               minimum and maximum limits set by the Government; and

        (ii)   an allocated pension may not provide an income stream for the
               rest of the person's life; and

        (iii)  payments will only be made while there is money in the
               allocated pension provided by the fund;

   (e)  a statement that outlines the means by which the fund is to be
        maintained as a capital guaranteed fund and sets out the name of the
        institution providing the investments that back the fund;

   (f)  a brief statement on the benefits that the person may become entitled
        to on becoming a member of the fund;

   (g)  a brief statement of who may contribute to the fund;

   (h)  a brief statement of when benefits are payable;

   (i)  a brief statement of the taxation of the fund and benefits;

   (j)  if a fixed-rate option is, or fixed-rate options are, offered by the
        fund in relation to the whole, or a part, of the benefits - a
        statement of the prescribed earning rate of each fixed-rate option and
        the term to which that prescribed earning rate applies;

   (k)  if a variable-rate option is, or variable-rate options are, offered by
        the fund in relation to the whole, or a part, of the benefits:

        (i)    a statement that the earning rate, or earning rates, may
               increase or decrease over time; and

        (ii)   the actual or notional net earning rate for the same class of,
               or similar, options offered by the fund for each year of the
               previous 5 years; and

        (iii)  the compound average of the annual actual or notional rate of
               net earnings for the same class of, or similar, options offered
               by the fund for each year of the previous 5 years; and

        (iv)   a statement that past earning rates are not an indicator of
               future earning rates;

   (l)  a summary of fees and charges that may be charged directly to the
        fund;

   (m)  a brief statement about the effect of the member- protection
        standards;

   (n)  if fees and charges are deducted before earnings are credited to the
        fund - a statement to the effect that earnings are credited net of all
        expenses;

   (o)  details (in summary form) of arrangements that the fund has to deal
        with inquiries or complaints;

   (p)  details of the existence and (in outline terms) the functions of the
        Superannuation Complaints Tribunal;

   (q)  if Division 6 of Part 19 of the Act (cooling-off - redemption of
        interests) applies to the fund - a summary of the provisions of that
        Division relating to the cooling-off period;

   (r)  a copy, or an updated version, of the information required to be given
        under Subdivision 2.4.3, that was most recently given to members of
        the fund;

   (s)  a statement of the circumstances in which the trustee will pay the
        member's benefits to an eligible rollover fund, the effect of that
        payment and the contact details of the eligible rollover fund;

   (t)  a statement that further information is available on request.".

9.7 Subregulation 2.10 (4): Omit the subregulation, substitute:

"(4) If a variable-rate option has not been in existence for 5 years, the
references in subparagraphs (3A) (k) (ii) and (iii) to 5 years are taken to be
references to the whole period of existence of the option.

"(5) The information mentioned in subparagraphs (3A) (k) (ii) and (iii) must
not have been first published or issued by the fund more than 15 months before
the date the information was given to the person.

"(6) In this regulation:
'fund' includes a capital guaranteed fund;
'significant benefit' means a financial benefit that the trustee reasonably
believes a member would reasonably expect to be told about.".