Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:1:p24
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 1 (pt 24/43)
Character Range: 1325452–1328287

Specific requirements: capital guaranteed funds and RSAs
 (1) For paragraph 1017D(5)(g) of the Act, and in addition to regulations 7.9.19 and 7.9.20, a periodic statement for a member of a capital guaranteed fund must include the following details:
 (a) a statement that outlines the means by which the fund is to be maintained as a capital guaranteed fund and sets out the name of the institution providing the investments that back the fund;
 (b) a statement that outlines the effect of the lower‑risk/lower‑return nature of the product on possible benefits in the long term;
 (c) a statement that the member may wish to consider:
 (i) other superannuation arrangements that may provide a greater return over the long term; and
 (ii) seeking advice on alternative investment arrangements that may be more suitable.
 (2) For paragraph 1017D(5)(g) of the Act, and in addition to regulation 7.9.19, a periodic statement for an RSA holder must include the following details:
 (a) a statement that outlines the effect of the lower‑risk/lower‑return nature of the product on possible benefits in the long term;
 (b) a suggestion that the RSA holder may wish to consider:
 (i) other superannuation arrangements that may provide a greater return over the long term; and
 (ii) seeking advice on alternative investment strategies that may be more suitable.

7.9.23  Information for capital guaranteed fund: benefits reach $10 000
  For paragraph 1017D(5)(g) of the Act, and in addition to regulations 7.9.19 and 7.9.22, if the amount of the benefits of a member in a capital guaranteed fund at the end of a reporting period is at least $10 000, the periodic statement for that reporting period must include the following details:
 (a) a statement of that fact;
 (b) a statement that the information contained in the periodic statement is important and that the notice must be read carefully;
 (c) a statement that outlines the effect of the lower‑risk/lower‑return nature of the product on possible benefits in the long term;
 (d) a statement that the member may wish to consider:
 (i) other superannuation arrangements that may provide a greater return over the long term; and
 (ii) seeking advice on alternative investment arrangements that may be more suitable.

7.9.24  Modification of Act: pensioners, members subject to compulsory protection of small amounts and members with small amounts that are expected to grow quickly
  For paragraph 1020G(1)(c) of the Act, Part 7.9 of the Act is modified in its application in relation to a superannuation entity or an RSA to which this Subdivision applies as set out in Part 7 of Schedule 10A.

Subdivision 5.3—Periodic statements for retail clients for financial products that have an investment component: information for RSAs

7.9.25  Application of Subdivision 5.3
  This Subdivision applies