Document ID: chunk:federal_register_of_legislation:C2019A00040:clause:1_6:p2
Version: federal_register_of_legislation:C2019A00040
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 2/2)
Character Range: 7278–9658

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 for the choice products;
 (d) any other matter specified in the prudential standards.
 (11) In determining whether the financial interests of the beneficiaries of the entity who hold a MySuper product or choice product are being promoted by the trustee, the trustee must assess each of the following:
 (a) whether the options, benefits and facilities offered under the product are appropriate to those beneficiaries;
 (b) whether the investment strategy for the product, including the level of investment risk and the return target, is appropriate to those beneficiaries;
 (c) whether the insurance strategy for the product is appropriate to those beneficiaries;
 (d) whether any insurance fees charged in relation to the product inappropriately erode the retirement income of those beneficiaries;
 (e) any other relevant matters, including any matters set out in the prudential standards.

Covenants relating to regulated superannuation funds—promoting financial interests of beneficiaries
 (12) 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 a covenant by each trustee of the entity to promote the financial interests of the beneficiaries of the entity who hold a MySuper product or a choice product, in particular returns to those beneficiaries (after the deduction of fees, costs and taxes).

Covenants relating to regulated superannuation funds—MySuper products
 (13) If the entity is a regulated superannuation fund that offers a MySuper product, the covenants referred to in subsection (1) include the following covenants by each trustee of the entity:
 (a) to include in the investment strategy for the MySuper product the details of the trustee's determination of the matters mentioned in paragraph (9)(a);
 (b) to include in the investment strategy for the MySuper product, and update each year:
 (i) the investment return target over a period of 10 years for the assets of the entity that are attributed to the MySuper product; and
 (ii) the level of risk appropriate to the investment of those assets.