Document ID: chunk:federal_register_of_legislation:F2025C00069:reg:8:p5
Version: federal_register_of_legislation:F2025C00069
Segment Type: reg
Provision Reference: reg 8 (pt 5/9)
Character Range: 212616–215532

Note: Information regarding investment strategies is generally set out in a Product Disclosure Statement. However, a shorter Product Disclosure Statement may, in accordance with the modifications of the Corporations Act 2001 set out in Part 5B of Schedule 10A to the Corporations Regulations 2001 provide some of the information by applying, adopting or incorporating a matter in writing; or refer to information that is set out in another document.
 (d) the beneficiary is fully informed of the range of directions that can be given and the circumstances in which they can be changed;
 (e) the trustee, when presenting a choice of 2 or more investment strategies to the beneficiary, informs the beneficiary which strategy the trustee will adopt if no direction is given.
 (4) Disregard the circumstance in paragraph (2)(e) if it is a condition of membership that the beneficiary chooses a strategy or combination of strategies.
 (5) If a beneficiary is not a standard employer‑sponsored member, the circumstances in which a direction other than a subsequent direction may be given by the beneficiary to take up, dispose of or alter the amount invested in an investment option are the circumstances in paragraphs (3)(a) to (d).
 (6) A subsequent direction may be given in the following circumstances:
 (a) the beneficiary is given all the information the trustee believes a person would need to understand the effect of, and any risk involved in, giving the subsequent direction;
 (b) the subsequent direction relates to the strategy for investing the beneficiary's interest in the fund.

4.03  Trustee of employer‑sponsored fund—prescribed direction by employer‑sponsor or associate of employer sponsor
 (1) For the purposes of paragraph 58(2)(e) of the Act, the circumstances in which the governing rules of a superannuation entity (other than a superannuation fund with no more than 6 members) may permit an employer‑sponsor or an associate of an employer‑sponsor to give a direction to the trustee of an employer‑sponsored fund are:
 (a) where, after the implementation of the direction:
 (i) the fund (if a defined benefit fund) would not become technically insolvent within the meaning of subregulation 9.06(3); or
 (ii) the fund (if an accumulation fund) would not become technically insolvent within the meaning of subregulation 9.35(3); and
 (b) where the direction would not require the trustee to contravene the Act (other than section 55) or these regulations; and
 (c) where the direction qualifies under subregulation (2).
 (2) A direction qualifies if:
 (a) the contributions of the employer‑sponsor to the fund include contributions that are not mandated employer contributions (within the meaning of Part 5) and the direction relates solely to either or both of the following:
 (i) those non‑mandated employer contributions; or
 (ii) benefits related to those non‑mandated employer contributions; or