(d) if the Part 6A product has an administration fee cap in relation to the relevant year, the applicable administration fee is the lesser of the following:
(i) the result of paragraph (b);
(ii) that administration fee cap.
(3) For the purposes of subregulation (1), work out the applicable investment fee as follows:
(a) first, work out the product of the following:
(i) an account balance in respect of the Part 6A product;
(ii) the Part 6A product’s investment fee percentage in relation to the relevant year;
(b) work out the sum of the following:
(i) the result of paragraph (a);
(ii) the Part 6A product’s investment fee flat amount in relation to the relevant year;
(c) if the Part 6A product does not have an investment fee cap in relation to the relevant year, the applicable investment fee is the result of paragraph (b);
(d) if the Part 6A product has an investment fee cap in relation to the relevant year, the applicable investment fee is the lesser of the following:
(i) the result of paragraph (b);
(ii) that investment fee cap.
(4) For the purposes of subregulation (1), work out the applicable transaction costs as follows:
(a) first, work out the product of the following:
(i) an account balance in respect of the Part 6A product;
(ii) the Part 6A product’s transaction costs percentage in relation to the relevant year;
(b) work out the sum of the following:
(i) the result of paragraph (a);
(ii) the Part 6A product’s transaction costs flat amount in relation to the relevant year;
(c) if the Part 6A product does not have a transaction costs cap in relation to the relevant year, the applicable transaction costs is the result of paragraph (b);
(d) if the Part 6A product has a transaction costs cap in relation to the relevant year, the applicable transaction costs is the lesser of the following:
(i) the result of paragraph (b);
(ii) that transaction costs cap.
9AB.25 Specified methods for Part 6A ranking products—paragraph 60J(3)(b) of Act
(1) For the purposes of paragraph 60J(3)(b) of the Act, the following subregulations specify methods for ranking Part 6A products according to the formulas specified in regulations 9AB.21 and 9AB.22.
(2) This subregulation specifies the method of ranking Part 6A products from:
(a) the highest result of applying the formula set out in regulation 9AB.23 (net return ranking formula) in respect of a Part 6A product in respect of a financial year;
(b) the lowest result of applying that formula in respect of a Part 6A product in respect of the financial year.
(3) This subregulation specifies the method of ranking Part 6A products from:
(a) the lowest result of applying the formula set out in regulation 9AB.24 (fee ranking formula) in respect of a Part 6A product in respect of a financial year;
to:
(b) the highest result of applying that formula in respect of a Part 6A product in respect of the financial year.
Part 9AC—Duties of trustees and investment managers of superannuation entities
9AC.01 Fund information
For the purposes of subsection 106(1A) of the Act, fund information means fund information required to be provided under regulation 7.9.32 of the Corporations Regulations 2001.
Part 9A—Approved SMSF auditors
9A.01 Qualifications
(1) For subparagraph 128B(1)(a)(i) of the Act, each of the following subregulations sets out a qualification.
(2) A degree, diploma or certificate in accounting of not less than 3 years, which includes a course in audit, from either of the following bodies (a relevant body):
(a) a university mentioned in Part 1 of the table in regulation 9.2.02 of the Corporations Regulations 2001;
(b) the institution mentioned in Part 2 of the table in regulation 9.2.02 of the Corporations Regulations 2001.
(3) Both:
(a) a degree, diploma or certificate in accounting of not less than 3 years, which does not include a course in audit, from a relevant body; and
(b) satisfactory completion of a course in audit (a relevant course) mentioned in regulation 9A.02.
(4) Both:
(a) a degree, diploma or certificate in accounting of not less than 3 years, which does not include a course in audit, from a relevant body; and
(b) satisfactory completion of the self managed superannuation fund specialist auditor program conducted by the SMSF Professionals’ Association of Australia Limited.
(5) A qualification or combination of qualifications which the Regulator regards as equivalent to the degree, diploma or certificate mentioned in subregulation (2), (3) or (4).
Note: The applicant need only have a qualification mentioned in subregulation 9A.01(2), (3), (4) or (5).
9A.02 Relevant courses
For paragraph 9A.01(3)(b), the relevant courses are:
(a) the following courses conducted by the Institute of Chartered Accountants in Australia:
(i) Audit and Assurance in the CA Program;
(ii) Financial Reporting and Assurance in the CA Program;
(iii) Accounting 2 in the Professional Year Program;
(iv) Audit and EDP Module in the Professional Year Program;
(v) an audit module in the Professional Year Program conducted before 1986 that is equivalent to a course mentioned in subparagraph (i), (ii), (iii) or (iv); and
(b) the following courses in the CPA Program conducted by CPA Australia:
(i) Assurance Services and Auditing;
(ii) Advanced Audit and Assurance; and
(c) the following courses conducted by, or on behalf of, the Institute of Public Accountants:
(i) Issues in Auditing and Professional Practice in the Graduate Certificate in Professional Accounting, offered by the University of New England in conjunction with the Institute of Public Accountants;
(ii) Issues in Auditing and Professional Practice in the Degree of Master of Commerce (Professional Accounting), offered by the University of New England in conjunction with the Institute of Public Accountants.
9A.03 Practical experience
For subparagraph 128B(1)(a)(ii) of the Act, each of the following is practical experience:
(a) at least 300 hours of work auditing self managed superannuation funds under the direction of an approved SMSF auditor in the 3 years immediately before applying to be an approved SMSF auditor;
(b) practical experience that the Regulator regards as equivalent to the practical experience mentioned in paragraph (a).
Note: The applicant need only have the practical experience mentioned in paragraph 9A.03(a) or (b).
9A.04 Continuing professional development requirements
(1) For paragraph 128F(a) of the Act, the requirements in this regulation form the continuing professional development requirement.
(2) The approved SMSF auditor must undertake at least 120 hours of continuing professional development every 3 years.
(3) The development must:
(a) include 30 hours of development about superannuation at least 8 hours of which is development about auditing of self managed superannuation funds; and
(b) be development that could reasonably be expected to enhance an approved SMSF auditor’s technical skills or professional service delivery.
(4) The approved SMSF auditor must keep a written record of the development undertaken by the approved SMSF auditor for at least 3 years after the end of the financial year in which the development occurred.
9A.05 Professional indemnity requirements
(1) For paragraph 128F(b) of the Act, each of the following subregulations sets out a level of professional indemnity insurance.
(2) The level that is set under a limitation of liability scheme provided by a professional organisation mentioned in Schedule 1AAA.
(3) The level that:
(a) is adequate to ensure that the amount of coverage in relation to a single claim or in aggregate is at least $500,000; and
(b) is adequate because other terms of the policy will indemnify the auditor against civil liability that may arise from an act, error or omission in connection with audits of self managed superannuation funds.
Note: The applicant need only have the level of professional indemnity insurance mentioned in subregulation 9A.05(2) or (3).
9A.06 Auditor independence requirements
For paragraph 128F(d) of the Act, the auditor independence requirements produced by the Accounting Professional and Ethical Standards Board Limited and set out in the APES 110 Code of Ethics for Professional Accountants (including Independence Standards) are prescribed for all approved SMSF auditors.
Note: At the commencement of this regulation, a copy of the APES 110 Code of Ethics for Professional Accountants (including Independence Standards) was available at www.apesb.org.au.
9A.07 When fees must be paid
For subsection 128L(3) of the Act, the table sets out when fees imposed under the Superannuation Auditor Registration Imposition Act 2012 are due and payable.
Item
A fee payable for ...
is due and payable ...
1
applying for registration as an approved SMSF auditor
when the application is submitted
1A
applying for conditions imposed on registration as an approved SMSF auditor to be varied or revoked under section 128D of the Act
when the application is submitted
1B
applying for registration as an approved SMSF auditor to be cancelled under section 128E of the Act
when the application is submitted
2
undertaking a competency examination in accordance with section 128C of the Act
when applying to sit the examination
3
giving to the Regulator a statement under section 128G of the Act
when the statement is submitted
4
giving to the Regulator a statement under section 128G of the Act within 1 month after it fell due (in addition to the fee payable because of item 3)
when the statement is submitted
5
giving to the Regulator a statement under section 128G of the Act more than 1 month after it fell due (in addition to the fee payable because of item 3)
when the statement is submitted
6
giving to the Regulator particulars under section 128H of the Act within 1 month after they fell due
when the particulars are submitted
7
giving to the Regulator particulars under section 128H of the Act more than 1 month after they fell due
when the particulars are submitted
8
inspecting or searching a register that the Regulator keeps under Division 1A of the Act
when the request is made
Part 10—Eligible rollover funds
10.01 Application for authority to operate eligible rollover fund
For subsection 242A(1) of the Act, the following may apply to APRA for authority to operate a regulated superannuation fund as an eligible rollover fund:
(a) the class of RSE licensee that holds a public offer entity licence;
(b) the class of RSE licensee that holds an extended public offer entity licence.
Note: For extended public offer entity licences, see regulation 3A.03.
10.02 Payment of benefit to eligible rollover fund
(1) For paragraph 243(1)(b) of the Act, 1 July 1995 is the date from which section 243 of the Act applies to a person.
(2) For paragraph 243(1)(c) of the Act, the condition is that the beneficiary is not a non‑member spouse whose entitlement under a payment split is to be dealt with under regulation 7A.16.
(3) For paragraph 243(3)(b) of the Act, the amount of the consideration for the issue of a superannuation interest:
(a) is the amount of the beneficiary’s withdrawal benefit in the transferor fund; and
(b) does not include any amount that would be payable to the member’s spouse or former spouse under a payment split.
Note: Section 243 of the Act sets out the circumstances in which the trustee of a fund may apply to an eligible rollover fund, on behalf of a beneficiary of the fund, for the issue of a superannuation interest in the eligible rollover fund to the beneficiary.
Part 11—Information to be given to the Regulator and related matters
11.01 Definition
In this Part:
contact person means a named individual, or a person holding a designated office or position, who is available to receive and deal with inquiries from the Regulator.
For the purposes of paragraph 254(2A)(b) of the Act, the prescribed information in relation to a regulated superannuation fund is:
(a) the following general information:
(i) the name of the fund; and
(ii) the postal address of the fund; and
(iii) the registered address of, or an address for service of notices on, the fund; and
(iv) a contact person, and contact telephone and facsimile numbers; and
(b) the following trustee information:
(i) if the trustee is a corporate trustee—the name, registered address and telephone number of the trustee, and the name of each director of the trustee; or
(ii) if the trustee, or each of the trustees, is an individual—the name of the trustee or of each trustee, as the case requires; and
(c) the following information about the fund:
(i) the date of establishment of the fund; and
(ii) a statement as to whether:
(A) the trustee of the fund is a constitutional corporation pursuant to a requirement contained in the governing rules; or
(B) the governing rules of the fund provide that the sole or primary purpose of the fund is the provision of old‑age pensions; and
(iii) a statement as to whether the fund is any (and if so, which) of the following:
(A) a self managed superannuation fund; or
(B) a public offer superannuation fund; or
(C) a public sector superannuation fund; or
(D) a public sector superannuation scheme;
(iv) if the fund is a self managed superannuation fund—a statement as to whether, in the trustee’s opinion, the fund is likely to be a self managed superannuation fund at the end of 12 months after the date of lodgment of the notice.
For the purposes of paragraph 254(2A)(b) of the Act, the prescribed information in relation to an approved deposit fund is:
(a) the following general information:
(i) the name of the fund; and
(ii) the postal address of the fund; and
(iii) the registered address of, or an address for service of notices on, the fund; and
(iv) a contact person, and contact telephone and facsimile numbers; and
(b) the following trustee information:
(i) the name of the trustee, its registered address and telephone number; and
(ii) the name of each director of the trustee; and
(c) the following information about the fund:
(i) the date of establishment of the fund; and
(ii) a statement as to whether the fund is an excluded approved deposit fund.
11.06 Prescribed information—PSTs
For the purposes of paragraph 254(2A)(b) of the Act, the prescribed information in relation to a pooled superannuation trust is:
(a) the following general information:
(i) the name of the trust; and
(ii) the postal address of the trust; and
(iii) the registered address of, or an address for service of notices on, the trust; and
(iv) a contact person, and contact telephone and facsimile numbers; and
(b) the following trustee information:
(i) the name of the trustee, its registered address and telephone number; and
(ii) the name of each director of the trustee; and
(c) the date of establishment of the trust.
11.07 Operating standard—disclosure of certain information (funds other than self managed superannuation funds)
(1) This standard:
(a) is made for subsections 31(1), 32(1) and 33(1) of the Act; and
(b) applies to a superannuation entity other than a self managed superannuation fund.
(2) The trustee of the entity must give written notice to the Regulator of any change in the following:
(a) the name of the entity;
(b) the postal address, registered address or address for service of notices of the entity;
(c) details of the contact person for the entity, and contact telephone and facsimile numbers;
(d) the RSE licensee of the entity.
(3) The notice for subregulation (2) must be given:
(a) for a superannuation entity that is an eligible rollover fund—immediately after the change; or
(b) in any other case—within 28 days of the change.
(4) An RSE licensee who is an incoming trustee of the entity must give written notice of that fact to the Regulator.
(5) The notice for subregulation (4) must be given:
(a) as soon as practicable after the RSE licensee becomes a trustee of the entity; and
(b) no later than 5 days after the date on which the RSE licensee becomes a trustee of the entity.
(6) The trustee of the entity must give written notice to the Regulator of a decision or resolution:
(a) to wind up the entity; or
(b) to retire as a trustee of the entity.
(7) The notice for subregulation (6) must be given
(a) as soon as practicable after the making of the decision or resolution; and
(b) before the winding up has commenced or the trustee has retired.
(8) The trustee of the entity must give written notice to the Regulator of a change in class of the RSE.
(9) The notice for subregulation (8) must be given before, or as soon as practicable after, the change in the class.
11.07AA Operating standard—disclosure of certain information (self managed superannuation funds)
(1) This standard is made for subsection 31(1) of the Act.
(2) The trustee of a self managed superannuation fund must give written notice to the Regulator of any change in the following:
(a) the name of the fund;
(b) the postal address, registered address or address for service of notices of the fund;
(c) details of the contact person for the fund, and contact telephone and facsimile numbers;
(d) the membership of the fund;
(e) the trustees of the fund;
(f) the directors of the fund’s corporate trustee.
(3) The notice for subregulation (2) must be given:
(a) using the approved form; and
(b) within 28 days after the change.
11.07A Operating standard—disclosure on change of status
(1) For subsection 31(1) of the Act, the requirement in subregulation (3) is a standard applicable to the operation of a regulated superannuation fund.
(2) The standard applies to the trustee of a superannuation fund that: