Document ID: chunk:federal_register_of_legislation:F2019L01577:body:0:p4
Version: federal_register_of_legislation:F2019L01577
Segment Type: other
Provision Reference: 
Character Range: 8807–11906

demonstrate:

       (a)          the purpose of the expenditure, including how the expenditure will contribute to the RSE licensee meeting its strategic objectives;
       (b)          how it will assess whether the expenditure is achieving its intended purpose, including any metrics used;
       (c)          the circumstances that would trigger a review of the expenditure decision, including whether any further related expenditure should take place; and
       (d)          how the expenditure will be funded and, where relevant, how the use of reserves as the source of funding for the expenditure accords with the strategy formulated pursuant to section 52(2)(i) of the SIS Act.
    20.         For the purposes of this Prudential Standard, 'expenditure' means a payment or expected future payment from the assets of an RSE or RSE licensee, including payments to and from reserves, not otherwise allocated to members' accounts; 'significant' relates to the size or extraordinary nature of the expenditure.

Annual outcomes assessment
    21.         An RSE licensee must, at a minimum, document the methodology applied in undertaking the annual outcomes assessment under section 52(9) of the SIS Act, including:
       (a)          how the RSE licensee has balanced the factors it must have regard to under sections 52(10) or (10A) and section 52(11) of the SIS Act and any benchmarks under the Superannuation Industry (Supervision) Regulations 1994 in making its overall determination(s) under section 52(9); and
       (b)          how the RSE licensee has determined the products it will use for the purposes of comparing its MySuper or choice product.[7]
    22.         For the purposes of comparing a MySuper product with other MySuper products under section 52(9)(a)(i) of the SIS Act, an RSE licensee must calculate the comparison factors as follows:
       (a)          for section 52(10)(a)-(b) of the SIS Act, use the methodology set out in Reporting Standard SRS 702.0 Investment Performance; and
       (b)          for section 52(10)(c) of the SIS Act, use the methodology set out in Reporting Standard SRS 700.0 Product Dashboard.
    23.         Pursuant to section 52(11)(e) of the SIS Act, in determining whether the financial interests of beneficiaries of the RSE who hold a MySuper product or choice product are being promoted, an RSE licensee must also assess the following matters:
       (a)          whether, because of the scale of, and within, the RSE licensee's business operations, those beneficiaries are disadvantaged;
       (b)          whether the operating costs of the RSE licensee's business operations are inappropriately affecting the financial interests of those beneficiaries; and
       (c)          whether the basis for the setting of fees is appropriate for those beneficiaries.

[1]  For the purposes of this Prudential Standard, 'RSE licensee' has the meaning given in section 10(1) of the SIS Act.
[2]  For the purposes of this Prudential Standard, pooled superannuation trust has the meaning given in section 10(1) of the SIS Act.
[3]  For the