Document ID: chunk:federal_register_of_legislation:F2015L00807:body:0:p13
Version: federal_register_of_legislation:F2015L00807
Segment Type: other
Provision Reference: 
Character Range: 34207–37191

an investment option within an RSE[6]:

       (a)           to which a member of that RSE may select to have all or a part of their interest directed, and that at the most recent 30 June has assets relating to non-MySuper interests which represent:

           (i)            more than five per cent of total assets of the RSE within which the investment option is located; or

           (ii)         less than five per cent of total assets of the RSE within which the investment option is located, but that are greater than $200 million; or

       (b)           which underlies:

           (i)            a defined benefit pension within the meaning of SPS 160, where that defined benefit pension is currently being paid; or

           (ii)         an interest that entitles the member who holds the interest, when benefits in respect of the interest become payable, to be paid a benefit referred to in the definition of 'defined benefit member' in SPS 160;

     * SIS Act means the Superannuation Industry (Supervision) Act 1993; and

     * sub-fund means a defined benefit sub-fund within meaning given in SPS 160.

Attachment A

Reporting hierarchy for membership base (item 4)

Attachment B

Identifying select investment options (item 7)

The below diagram depicts a theoretical complex RSE structure where more than one investment option and product are offered. RSE No.1 includes several products available for members and beneficiaries, including a MySuper product and a pension product.

SRF 533.1, which collects information on the asset allocation and member benefit flows, must be completed in respect of each select investment option.
Figure B1: Complex RSE structure[7]

APRA expects the following principles to be applied when identifying select investment options in RSEs with complex structures.

     1. The select investment option reporting requirements apply at the RSE level, not the RSE licensee level. If an RSE licensee operates more than one RSE, each of which invests in the same investment option, that investment option must be reported separately in respect of each RSE for which it meets the definition of a select investment option.
     2. The select investment option reporting requirements apply to investment options, not to products, lifecycle cohorts or channels. If an investment option meets the definition of a select investment option, it is to be reported regardless of the number of products or lifecycle cohorts that invest in that select investment option.
     3. If an investment option includes MySuper product assets, the MySuper product assets are to be subtracted from the total asset size to determine if the investment option meets the definition of a select investment option. For example, in Figure B1, at the most recent 30 June:
       (a)          RSE No.1 held $10bn in assets;
       (b)          Balanced Option 1 held $900m in assets, of which:
           (i)                   the MySuper