Document ID: chunk:federal_register_of_legislation:C2019A00040:clause:1_6:p1
Version: federal_register_of_legislation:C2019A00040
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 1/2)
Character Range: 4721–7518

6  At the end of section 52
Add:

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 fewer than 5 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 comparison of the choice product with any other benchmarks specified in regulations made for the purposes of this subparagraph; and
 (iii) the factors mentioned in subsection (11);
 (aa) to determine, in writing, on an annual basis, whether each trustee of the entity is promoting the financial interests of the beneficiaries of the fund, as assessed against benchmarks specified in regulations made for the purposes of this paragraph;
 (b) to make the determination referred to in paragraph (a), and a summary of the assessments and comparisons on which the determination is based, publicly available on the website of the entity;
 (c) to do so within 28 days after the determination is made;
 (d) to keep the determination, and the summary of the assessments and comparisons on which the determination is based, on the website until a new determination is made as referred to in paragraph (a).
 (10) In comparing a MySuper product with other MySuper products, the trustees must compare each of the following:
 (a) the fees and costs that affect the return to the beneficiaries holding the MySuper products;
 (b) the return for the MySuper products (after the deduction of fees, costs and taxes);
 (c) the level of investment risk for the MySuper products;
 (d) any other matter set out in the prudential standards.
 (10A) In comparing a choice product with the comparable choice products in relation to the choice product, the trustees must compare each of the following:
 (a) the fees and costs that affect the return to the beneficiaries holding the choice products;
 (b) the return for the choice products;
 (c) the level of investment risk