Document ID: chunk:federal_register_of_legislation:C2025C00134:section:52:p4
Version: federal_register_of_legislation:C2025C00134
Segment Type: section
Provision Reference: s 52 (pt 4/6)
Character Range: 368812–371621

(ii) the risks that arise in operating the entity;
 (b) to maintain and manage in accordance with the prudential standards financial resources (whether capital of the trustee, a reserve of the entity or both) to cover the operational risk that relates to the entity.

Retirement income covenants
 (8A) The covenants referred to in subsection (1) include the following covenants by each trustee of the entity:
 (a) to formulate, review regularly and give effect to a retirement income strategy that meets the requirements in section 52AA;
 (b) to take reasonable steps to gather the information necessary to inform the formulation and review of the strategy;
 (c) to record the strategy in writing;
 (d) to record in the document in which the strategy is recorded:
 (i) each determination made by the trustee for the purposes of the strategy, and the reasons for the determination; and
 (ii) each other decision made by the trustee in formulating, reviewing or giving effect to the strategy that the trustee considers to be significant, and the reasons for the decision; and
 (iii) the steps taken to gather the information that informed the formulation of the strategy, and the reasons for taking those steps;
 (e) to make a summary of the strategy publicly available on the website of the entity.
 (8B) Subsection (8A) does not apply if the entity is a regulated superannuation fund, and the only benefits it provides to, or in respect of, its members are any of the following:
 (a) death benefit;
 (b) permanent incapacity benefit;
 (c) a benefit provided if, and only if, a member is suffering temporary incapacity (within the meaning of the superannuation data and payment standards).

Covenants relating to regulated superannuation funds—annual outcomes assessments
 (9) If the entity is a regulated superannuation fund (other than a regulated superannuation fund with no more than 6 members), the covenants referred to in subsection (1) include the following covenants by each trustee of the entity:
 (a) to determine, in writing, on an annual basis, for each MySuper product and choice product offered by the entity, whether the financial interests of the beneficiaries of the entity who hold the product are being promoted by the trustee, having regard to:
 (i) if the product is a MySuper product—a comparison of the MySuper product with other MySuper products offered by other regulated superannuation funds, based on the factors mentioned in subsection (10), and a comparison of the MySuper product with any other benchmarks specified in regulations made for the purposes of this subparagraph; and
 (ii) if the product is a choice product—a comparison of the choice product with the comparable choice products in relation to the choice product, based on factors mentioned in subsection (10A), and a