covered asset class has the meaning given by regulation 9AB.17.
currency exposure:
(a) of a standard Part 6A product in relation to a quarter, means the Part 6A product’s currency exposure in relation to the quarter, as reported to APRA in accordance with the applicable asset allocation standard; and
(b) of a lifecycle Part 6A product in relation to a lifestage and a quarter, means the Part 6A product’s currency exposure in relation to the lifestage and the quarter, as reported to APRA in accordance with the applicable asset allocation standard.
fees standard means:
(a) the Financial Sector (Collection of Data) (reporting standard) determination No. 47 of 2023; or
(b) an analogous legislative instrument (whether or not the legislative instrument is in force).
gross investment return net of fees:
(a) of a standard Part 6A product in relation to a quarter, means the Part 6A product’s gross investment return net of fees in relation to the quarter, as reported to APRA in accordance with the applicable investment performance standard; and
(b) of a lifecycle Part 6A product in relation to a lifestage and a quarter, means the Part 6A product’s gross investment return net of fees in relation to the lifestage and the quarter, as reported to APRA in accordance with the applicable investment performance standard.
hybrid platform TDP means a platform TDP that is offered through one or more investment menus of the generic type or the lifecycle option type (in addition to investment menus of the platform type), as reported to APRA in accordance with the applicable RSE structure standard.
IEH percentage, IEU percentage and IFI percentage have the meanings given by subregulation 9AB.5A(6).
index has the meaning given by regulation 9AB.5A.
indirect cost ratio, of a Part 6A product in relation to a financial year, means the Part 6A product’s indirect cost ratio in relation to the end of the financial year, as reported to APRA in accordance with the applicable fees standard.
initial quarter of a Part 6A product means the first quarter in relation to which the trustee of the superannuation entity that offers the Part 6A product reported to APRA, in accordance with the applicable investment performance standard, a net investment return or gross investment return net of fees of the Part 6A product.
investment fee cap, of a Part 6A product in relation to a financial year, means the Part 6A product’s fee cap (for the investment fee type of fee) in relation to the end of the financial year, as reported to APRA in accordance with the applicable fees standard.
investment fee flat amount, of a Part 6A product in relation to a financial year, means the Part 6A product’s dollar amount (for the investment fee type of fee) in relation to the end of the financial year, as reported to APRA in accordance with the applicable fees standard.
investment fee percentage, of a Part 6A product in relation to a financial year, means the Part 6A product’s percentage of member balance (for the investment fee type of fee) in relation to the end of the financial year, as reported to APRA in accordance with the applicable fees standard.
investment pathway: if there is a choice of different ways of investing in a Part 6A product, as reported to APRA in accordance with the applicable RSE structure standard, each of those ways is an investment pathway of the Part 6A product.
investment pathway weight has the meaning given by subregulation 9AB.4A(9).
investment performance standard means:
(a) the Financial Sector (Collection of Data) (reporting standard) determination No. 45 of 2023; or
(b) the Financial Sector (Collection of Data) (reporting standard) determination No. 46 of 2023; or
(c) an analogous legislative instrument (whether or not the legislative instrument is in force).
lifecycle Part 6A product has the meaning given by regulation 9AB.3.
lifestage weight has the meaning given by regulation 9AB.4.
lookback period, for a Part 6A product in respect of a financial year, has the meaning given by regulation 9AB.6.
net investment return, of a Part 6A product in relation to a quarter, means the Part 6A product’s net investment return in relation to the quarter, as reported to APRA in accordance with the applicable investment performance standard.
net return, of a Part 6A product in relation to a quarter, means the Part 6A product’s net return in relation to the quarter, as reported to APRA in accordance with the applicable investment performance standard.
performance measure, for a Part 6A product for a financial year, has the meaning given by subregulation 9AB.10(3).
platform TDP means a trustee‑directed product that is offered through one or more investment menus of the platform type, as reported to APRA in accordance with the applicable RSE structure standard.
representative administration fees and expenses or RAFE has the meaning given by regulation 9AB.4A.
RSE structure standard means:
(a) the Financial Sector (Collection of Data) (reporting standard) determination No. 43 of 2023; or
(b) the Financial Sector (Collection of Data) (reporting standard) determination No. 44 of 2023; or
(c) an analogous legislative instrument (whether or not the legislative instrument is in force).
standard fees and costs arrangement, of a Part 6A product in relation to a period, means the Part 6A product’s standard fees and costs arrangement in relation to the period, as reported to APRA in accordance with the applicable investment performance standard and applicable RSE structure standard.
standard Part 6A product: a Part 6A product is a standard Part 6A product if it is not a lifecycle Part 6A product.
standard platform TDP means a platform TDP that is not a hybrid platform TDP.
strategic asset allocation has the meaning given by regulation 9AB.5.
transaction costs cap, of a Part 6A product in relation to a financial year, means the Part 6A product’s fee cap (for the transaction costs type of fee) in relation to the end of the financial year, as reported to APRA in accordance with the applicable fees standard.
transaction costs flat amount, of a Part 6A product in relation to a financial year, means the Part 6A product’s dollar amount (for the transaction costs type of fee) in relation to the end of the financial year, as reported to APRA in accordance with the applicable fees standard.
transaction costs percentage, of a Part 6A product in relation to a financial year, means the Part 6A product’s percentage of member balance (for the transaction costs type of fee) in relation to the end of the financial year, as reported to APRA in accordance with the applicable fees standard.
trustee‑directed product has the meaning given by regulation 9AB.2.
9AB.2 Meaning of Part 6A product—trustee‑directed products
(1) For the purposes of paragraph 60B(b) of the Act, trustee‑directed products are identified as a class of beneficial interest in a regulated superannuation fund.
(2) A class of beneficial interest in a regulated superannuation fund is a trustee‑directed product in the fund if:
(a) at least one of the beneficial interests in the class is not a superannuation interest (within the meaning of the 1997 Tax Act) that supports any of the following:
(i) a superannuation income stream that is in the retirement phase;
(ii) a superannuation income stream that is a transition to retirement income stream (within the meaning of Part 6 of these Regulations); and
(b) the investment strategy, for the class of beneficial interest, of the trustee of the fund:
(i) requires the class of beneficial interest to have strategic asset allocations to more than one covered asset class; and
(ii) if there are only 2 such strategic asset allocations—requires each of those strategic asset allocations (expressed as a percentage) to the class of beneficial interest to exceed 10%; and
(c) a beneficiary of the fund cannot require any trustee of the fund to alter an amount attributable to the beneficiary to be invested in a particular covered asset class; and
(d) none of the exceptions in subregulations (5), (6) and (7) applies.
(3) For the purposes of paragraph (2)(b), in determining a strategic asset allocation to a covered asset class, assume that the class of beneficial interest is a standard Part 6A product.
(4) For the purposes of subparagraph (2)(b)(i), treat 2 covered asset classes for a quarter as being one covered asset class for the quarter if the only difference between the descriptions of those classes in the table in regulation 9AB.17 relating to the quarter is that:
(a) the description of one of those classes contains the word “hedged”; and
(b) the description of the other class contains the word “unhedged”.
(4A) Despite subregulation (4), for the purposes of subparagraph (2)(b)(i), treat the covered asset classes for a quarter listed in each of the following paragraphs as each being one covered asset class for the quarter:
(a) the covered asset classes identified in items 2, 3, 4, 5, 6 and 7 of the table in regulation 9AB.17;
(b) the covered asset classes identified in items 16, 17 and 18 of that table;
(c) the covered asset classes identified in items 19, 20 and 21 of that table;
(d) the covered asset classes identified in items 24, 25 and 26 of that table.
Exceptions
(5) The exception in this subregulation applies if all the members of the fund who hold the class of beneficial interest in the fund are defined benefit members.
(6) The exception in this subregulation applies if the assets of the fund that are invested in respect of the class of beneficial interest are invested only in one or more of the following:
(a) a life policy under which contributions and accumulated earnings may not be reduced by negative investment returns or any reduction in the value of assets in which the policy is invested;
(b) a life policy under which the benefit to a member (or a relative or dependant of a member) is based only on the realisation of a risk, not the performance of an investment;
(c) an investment account contract the only beneficiaries of which are a member, and relatives and dependants of a member.
(7) The exception in this subregulation applies if:
(a) the trustee of the fund does not engage in any activity relating to the management of investments in respect of the class of beneficial interest; and
(b) each entity that manages investments in respect of the class of beneficial interest is not a connected entity in relation to the trustee of the fund; and
(c) the trustee of the fund does not engage in any activity relating to setting of strategic asset allocations to the class of beneficial interest; and
(d) each entity that sets strategic asset allocations to the class of beneficial interest is not a connected entity in relation to the trustee of the fund.
9AB.3 Meaning of lifecycle Part 6A product
(1) A Part 6A product is a lifecycle Part 6A product if:
(a) the investments supporting the Part 6A product are divided into categories; and
(b) each such category of investments is referrable to a lifestage of the Part 6A product.
(2) Subregulation (3) applies in relation to a Part 6A product in respect of a financial year (the current year) if the Part 6A product was a lifecycle Part 6A product (disregarding paragraph (3)(a)) at any time in the lookback period for the Part 6A product in respect of the current year.
(3) For the purposes of applying this Part to the current year:
(a) treat the Part 6A product as a lifecycle Part 6A product throughout that lookback period; and
(b) treat the Part 6A product as having one lifestage in relation to each quarter that satisfies both of the following requirements:
(i) the quarter is in that lookback period;
(ii) the Part 6A product was not a lifecycle Part 6A product (disregarding paragraph (a)) at the end of the previous quarter.
Note 1: For the purposes of applying this Part to the current year, the Part 6A product will be in the class specified in subregulation 9AB.9(3) in relation to the current year.
Note 2: For the purposes of applying this Part to the current year, the Part 6A product will have a lifestage weight of one in relation to each quarter in the lookback period and the lifestage mentioned in paragraph (b).
(4) Paragraph (3)(b) does not apply in relation to the quarter mentioned in subparagraph (3)(b)(i) if APRA has made a determination under subregulation 9AB.14(10) that:
(a) specifies the Part 6A product; and
(b) specifies the superannuation entity that offers the Part 6A product; and
(c) specifies 2 quarters, the later of which is the quarter mentioned in subparagraph (3)(b)(i) of this regulation.
(5) For the purposes of subparagraph (3)(b)(ii), if the previous quarter is before the Part 6A product’s initial quarter, treat the reference in that subparagraph to the previous quarter as being a reference to the initial quarter.
9AB.4 Meaning of lifestage weight
(1) The lifestage weight of a Part 6A product, in relation to a quarter and a lifestage, is:
(a) the market value at the end of the previous quarter of all investments supporting the Part 6A product that are referable to the lifestage;
divided by;
(b) the market value at the end of the previous quarter of all investments supporting the Part 6A product that are referable to a lifestage of the Part 6A product.
(2) For the purposes of subregulation (1), if the previous quarter is before the Part 6A product’s initial quarter, treat the references in subregulation (1) to the previous quarter as being references to the initial quarter.
9AB.4A Meaning of representative administration fees and expenses or RAFE
(1) Representative administration fees and expenses or RAFE, for a Part 6A product in relation to a period, means the sum of the following:
(a) the Part 6A product’s administration fees and costs, and related tax expenses and benefits, in relation to the period under the Part 6A product’s standard fees and costs arrangement in relation to the period as reported to APRA in accordance with the applicable investment performance standard and applicable RSE structure standard;
(b) the Part 6A product’s advice fees and costs, and related tax expenses and benefits, in relation to the period under that standard fees and costs arrangement.
(2) In working out an amount for the purposes of paragraph (1)(a) or (b), assume that the amount related to a beneficiary of the entity offering the Part 6A product with an account balance in respect of the Part 6A product throughout the period of:
(a) if paragraph (b) does not apply—$50,000;
(b) if there is a minimum balance requirement to access the Part 6A product that is greater than $50,000—that minimum balance.
Lifecycle Part 6A products
(3) Subregulations (4) to (6) apply if the Part 6A product is a lifecycle Part 6A product.
(4) Despite subregulation (1), work out the representative administration fees and expenses or RAFE for the Part 6A product in relation to a period as follows:
(a) first, work out each RAFE for the Part 6A product in relation to the period, in accordance with subregulation (1), on the assumptions that:
(i) subregulation (1) applies separately in respect of each lifestage of the Part 6A product; and
(ii) in applying subregulation (1) to a lifestage, references in that subregulation to amounts reported to APRA were references to such amounts to the extent that they relate to that lifestage;
(b) next, identify the largest of the RAFEs worked out under paragraph (a).
(5) Subregulation (6) applies if:
(a) the lifecycle Part 6A product has particular lifestages at the start of a financial year; and
(b) at one or more times during the year, the product starts to have different lifestages.
(6) Despite subregulations (1) and (4), work out the RAFE for the Part 6A product in relation to the year as follows:
(a) first, divide the year into periods on the following basis:
(i) the first period starts at the start of the year;
(ii) a new period starts each time the product starts to have different lifestages;
(iii) the last period ends at the end of the year;
Note: Each period, other than the last period, ends immediately before the first time after the start of that period at which there is a change of the lifestages.
(b) next, work out the RAFE for the Part 6A product in relation to each period identified under paragraph (a), in accordance with subregulation (4);
(c) next, work out the sum of the RAFEs worked out under paragraph (b).
Trustee‑directed products
(7) Subregulations (8) and (9) apply if the Part 6A product is a trustee‑directed product.
(8) Despite subregulations (1) to (6), work out the representative administration fees and expenses or RAFE for the Part 6A product in relation to a period as follows:
(a) first, work out each RAFE for the Part 6A product in relation to each quarter in the period, in accordance with those subregulations, on the assumptions that:
(i) those subregulations apply separately in respect of each investment pathway of the Part 6A product; and
(ii) in applying those subregulations in respect of an investment pathway, references in those subregulations to amounts reported to APRA were references to such amounts to the extent that they relate to that investment pathway;
(b) next, multiply each RAFE identified under paragraph (a) in relation to a quarter and an investment pathway by the investment pathway weight for the investment pathway for the quarter (see subregulation (9));
(c) next, work out the sum of the results of paragraph (b).
(9) The investment pathway weight of a Part 6A product for an investment pathway for a quarter is:
(a) the market value at the end of the quarter of all member assets supporting the Part 6A product that are referable to the investment pathway;