Commonwealth Consolidated Regulations

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CORPORATIONS REGULATIONS 2001 - REG 7.9.20AA

Specific requirements for certain periodic statements: superannuation funds (other than self managed superannuation funds)--long - term returns

  (1)   For paragraph   7.9.20(1)(n), this regulation sets out requirements that apply to a trustee of a regulated superannuation fund (other than a self managed fund).

  (1A)   This regulation does not apply if:

  (a)   the superannuation product is a non - investment or accumulation life insurance policy that is offered through the regulated superannuation fund; or

  (b)   the superannuation product has no investment component (also known as a risk - only superannuation product); or

  (c)   the statement is a periodic statement to be given to a member of the regulated superannuation fund for a reporting period mentioned in paragraph   1017D(2)(d) of the Act.

  (8)   The trustee must provide the following, in the periodic statement for a reporting period that is provided from 1   July 2011, to each member of the regulated superannuation fund:

  (a)   if the member is invested in an investment option at the end of the reporting period--a statement of the long - term returns of the investment option;

  (b)   if the member is not invested in an investment option at the end of the reporting period--a statement of the long term returns of the sub - plan, or, if none, the fund in which the member holds an interest at the end of the reporting period.

  (9)   For paragraph   (8)(a), the long - term returns must be stated as:

  (a)   the compound average effective rate of net earnings of the investment option for the period of 5 years ending at the end of the last financial year or reporting period before the provision of the periodic statement; and

  (b)   the compound average effective rate of net earnings of the investment option for the period of 10 years ending at the end of that financial year or reporting period.

  (10)   For paragraph   (8)(b), the long - term returns must be stated as:

  (a)   the compound average effective rate of net earnings of the sub - plan or fund for the period of 5 years ending at the end of the last financial year or reporting period before the provision of the periodic statement; and

  (b)   the compound average effective rate of net earnings of the sub - plan or fund for the period of 10 years ending at the end of that financial year or reporting period.

  (11)   The trustee must include in the periodic statement, near to the statement of long - term returns, a statement to the effect that the returns are not the returns of the member's investment in the investment option, sub - plan or fund.

General requirements

  (12)   For subregulations (3), (4), (9) and (10), if the investment option, sub - plan or fund has been in operation for less than the 5 - year or 10 - year period to be reported on, the trustee must provide:

  (a)   the long - term return for the period in which the investment option, sub - plan or fund has been in operation; and

  (b)   the date on which the investment option, sub - plan or fund came into operation.

  (13)   If the long - term returns are provided in the periodic statement, they must be positioned near to the statement of the rate of any allotment of earnings during the reporting period.

  (14)   The long - term returns must be presented in a clear, concise and effective manner.


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