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Determinations/Financial (Other) as made
This instrument determines Reporting Standard SRS 706.0 Fees and Costs.
Administered by: Treasury
Exempt from sunsetting by the Legislation (Exemptions and Other Matters) Regulation 2015 s11 item 06
Registered 17 Sep 2021
Tabling HistoryDate
Tabled HR18-Oct-2021
Tabled Senate18-Oct-2021

Financial Sector (Collection of Data) (reporting standard) determination No. 22 of 2021

Reporting Standard SRS 706.0 Fees and Costs

Financial Sector (Collection of Data) Act 2001

 

I, Alison Bliss, delegate of APRA, under paragraph 13(1)(a) of the Financial Sector (Collection of Data) Act 2001 (the Act) DETERMINE Reporting Standard SRS 706.0 Fees and Costs, in the form set out in the Schedule, which applies to the financial sector entities to the extent provided in paragraph 3 of the reporting standard.

 

Under section 15 of the Act, I DECLARE that the reporting standard shall begin to apply to those financial sector entities on and after the day it is registered on the Federal Register of Legislation.

 

This instrument commences upon registration on the Federal Register of Legislation.

 

Dated: 15 September 2021

 

[Signed]

 

Alison Bliss

General Manager

Data Analytics and Insights Division

 

 

 

Interpretation

In this Determination:

APRA means the Australian Prudential Regulation Authority.

financial sector entity has the meaning given by section 5 of the Act.


 

Schedule

 

Reporting Standard SRS 706.0 Fees and Costs comprises the document commencing on the following page.


 

 

Reporting Standard SRS 706.0

Fees and Costs Disclosed

Objective of this reporting standard
This Reporting Standard sets out requirements for the provision of information to APRA relating to the disclosed fees and costs of superannuation products, investment menus and investment options.

It includes Reporting Form SRF 706.0 Fees and Costs Disclosed and associated specific instructions.

Authority

1.             This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.

Purpose

2.             Information collected under this Reporting Standard is used by APRA for the purposes of prudential supervision and publication. It may also be used by the Australian Securities and Investments Commission.

Application

3.             This Reporting Standard applies to each registrable superannuation entity (RSE) licensee (RSE licensee) in respect of each RSE, defined benefit RSE and eligible rollover fund (ERF) within its business operations[1].

Commencement

4.             This Reporting Standard applies to reporting periods ending on and after 30 June 2021.

Reporting periods

5.             Reporting periods under this Reporting Standard are each year ending 30 June.

Initial information required

6.             An RSE licensee must provide information required by this Reporting Standard in respect of 30 June 2021, in respect of:  

(a)        an investment option underlying a MySuper product;

(b)        a trustee-directed product;

(c)        a superannuation product or investment menu providing an investment pathway to (a); or

(d)       a superannuation product or investment menu providing an investment pathway to (b).

7.             For the reporting period under paragraph 5 ending on 30 June 2021;

(a)    in respect of paragraph 6(a) and 6(c), an RSE licensee must provide the information required by paragraph 6, by 30 September 2021.

(b)   in respect of paragraph 6(b) and 6(d), an RSE licensee must provide all information required by paragraph 6, by 28 October 2021.

Information required

8.             RSE licensees must provide information required by this Reporting Standard in respect of:

(a)      30 June 2022; and

(b)     each subsequent 30 June.

9.             An RSE licensee to which this Reporting Standard applies must provide the information required by paragraph 8, within 28 days after the end of the relevant reporting day.

Ad-hoc information required

10.         Where an RSE licensee makes a change to information relating to fees and costs that the RSE licensee is required to disclose to members, resulting in a change to information reported under this Reporting Standard, the RSE licensee must provide updated information required by this Reporting Standard as at the date of the change, by the later date of 28 calendar days after the change or the next due date in paragraph 7.

Quarterly attestation required

11.         An RSE licensee must provide APRA an attestation that the information it last provided APRA under this Reporting Standard was still accurate as at the end of every calendar quarter (i.e. the periods ending 30 September, 31 December, 31 March and 30 June each year) or that the RSE Licensee has, or will be, providing updated information to APRA in accordance with paragraph 10.

12.         An RSE licensee to which this Reporting Standard applies must provide information required under paragraph 11, within 28 days after the end of each calendar quarter.

Notices

13.         If, having regard to the particular circumstances of an RSE, defined benefit RSE or ERF, APRA considers it necessary or desirable to obtain information more or less frequently than as provided by paragraph 8, APRA may, by notice in writing, change the reporting day for the particular RSE, defined benefit RSE, PST or ERF.

14.         Where APRA has changed the reporting day under paragraph 13, the RSE licensee must provide the relevant information within the time specified by the notice in writing.

15.         APRA may grant, in writing, an RSE licensee an extension of a due date with respect to one or more RSEs, defined benefit RSEs, PSTs or ERFs within its business operations, in which case the new due date for the provision of the information will be the due date on the specified notice of extension.

Note: For the avoidance of doubt, if the due date falls on a day other than a usual business day, an RSE licensee is nonetheless required to submit the information required no later than the due date.

Form and method of submission

16.         The information required by this Reporting Standard must be given to APRA in electronic format using an electronic method available on APRA’s website or by a method notified by APRA prior to submission.

Quality control

17.         The information provided by an RSE licensee under this Reporting Standard must be the product of systems, procedures and internal controls that have been reviewed and tested by the RSE auditor of the RSE, defined benefit RSE or ERF to which the information relates[2]. This will require the RSE auditor to review and test the RSE licensee’s systems, procedures and internal controls designed to enable the RSE licensee to report reliable information to APRA. This review and testing must be done on:

(a)           an annual basis or more frequently if necessary to enable the RSE auditor to form an opinion on the reliability and accuracy of information; and

(b)          at least a limited assurance engagement consistent with professional standards and guidance notes issued by the Auditing and Assurance Standards Board as may be amended from time to time, to the extent that they are not inconsistent with the requirements of Prudential Standard SPS 310 Audit and Related Matters (SPS 310).

18.         All information provided by an RSE licensee under this Reporting Standard must be subject to systems, processes and controls developed by the RSE licensee for the internal review and authorisation of that information. It is the responsibility of the Board and senior management of the RSE licensee to ensure that an appropriate set of policies, procedures and controls for the authorisation of information submitted to APRA is in place.

Authorisation

19.         When an officer or agent of an RSE licensee provides the information required by this Reporting Standard using an electronic format, the officer or agent must digitally sign the relevant information using a digital certificate acceptable to APRA.

20.         If the information required by this Reporting Standard is provided by an agent who submits the information on the RSE licensee’s behalf, the RSE licensee must:

(a)           obtain from the agent a copy of the completed form with the information provided to APRA; and

(b)          retain the completed copy.

21.         An officer or agent of an RSE licensee who submits the information under this Reporting Standard for, or on behalf of, the RSE licensee must be authorised by either:

(a)           the Chief Executive Officer of the RSE licensee; or

(b)          the Chief Financial Officer of the RSE licensee.

Minor alterations to forms and instructions

22.         APRA may make minor variations to:

(a)           a form that is part of this Reporting Standard, and the instructions to such a form, to correct technical, programming or logical errors, inconsistencies or anomalies; or

(b)          the instructions to a form, to clarify their application to the form,

without changing any substantive requirement in the form or instructions.

23.         If APRA makes such a variation, it must notify each RSE licensee that is required to report under this Reporting Standard.

Interpretation

24.         In this Reporting Standard:

APRA means the Australian Prudential Regulation Authority established under the Australian Prudential Regulation Authority Act 1998.

Chief Executive Officer means the chief executive officer of the RSE licensee, by whatever name called, and whether or not he or she is a member of the Board of the RSE licensee[3].

Chief Financial Officer means the chief financial officer of the RSE licensee, by whatever name called.

defined benefit RSE has the meaning of a defined benefit fund in subsection 10(1) of the SIS Act.

disclosure means a disclosure made pursuant to Division 2 or Division 3 of Part 7.9 of the Corporations Act 2001.

due date means the relevant due date under paragraph 7, 9, 10, 12, or if applicable, paragraph 15 of this Reporting Standard.

eligible rollover fund (ERF) has the meaning given in subsection 10(1) of the SIS Act.

investment menu has the meaning given in SRS 101.0.

investment option has the meaning given in SRS 101.0.

an investment pathway is provided by a superannuation product, or an investment menu, to an investment option, if it is possible for a member to invest in the investment option through that superannuation product or investment menu.  

MySuper product has the meaning given in subsection 10(1) of the SIS Act.

reporting day means a day mentioned in paragraph 8 or, if applicable, paragraph 13 of this Reporting Standard.

RSE means a registrable superannuation entity as defined in subsection 10(1) of the SIS Act that is not a defined benefit RSE, pooled superannuation trust, ERF, small APRA fund or single member approved deposit fund[4].

RSE auditor means an auditor appointed by the RSE licensee to perform functions under this Reporting Standard.

RSE licensee has the meaning given in subsection 10(1) of the SIS Act.

SIS Act means Superannuation Industry (Supervision) Act 1993.

SRS 101.0 means Reporting Standard SRS 101.0 Definitions for Superannuation Data Collections.

superannuation product has the meaning given in SRS 101.0.

25.         In this Reporting Standard, unless the contrary intention appears, a reference to an Act, Regulation, Prudential Standard, Reporting Standard, Australian Accounting Standard or Auditing Standard is a reference to the instrument as in force or existing from time to time.

26.         Where this Reporting Standard provides for APRA to exercise a power or discretion, this power or discretion is to be exercised in writing.


Reporting Form SRF 706.0

Fees and Costs Disclosed

Instruction Guide

This instruction guide is designed to assist in the completion of Reporting Form SRF 706.0 Fees and Costs Disclosed (SRF 706.0).

General directions and notes

Reporting level

SRF 706.0 must be completed for each superannuation product, investment menu and investment option within each RSE, defined benefit RSE and eligible rollover fund (ERF) within its business operations excluding the following:

·        investment options which have been aggregated as permitted in Table 3 of Reporting Form SRF 605.0 RSE Structure (SRF 605.0);

·        investment options which solely underlie defined benefits; and

·        investment options which are reported on SRF 605.0 under investment option category Annuity.

Report fees and costs for the superannuation product, investment menu or investment option at which they arise or are incurred.

RSE licensees need to determine the appropriate reporting level for each of the applicable fees and costs depending on the structure of the RSE, defined benefit RSE and ERF.

Fees and costs may be incurred at each RSE structure level, but may vary depending on the combination of RSE structure levels a member is in.

For example, it is expected that administration fees will generally be reported at a superannuation product level, platform fees may sometimes be reported at the investment menu level, while investment management fees will generally be reported at the investment option level. The investment management fee for an investment option may vary depending on which superannuation product the member is invested through.

Where the fee or cost is applicable to all members in the RSE structure level, the RSE licensee must report data for that RSE structure level and report ‘ALL’ for the remaining RSE structure levels.

Where the fee or cost varies depending on the combination of RSE structure levels, the RSE licensee must report data for each relevant combination of superannuation product, investment menu and investment option.

For example, an administration fee that applies across all investment menus and investment options within a superannuation product would be identified with the relevant superannuation product identifier to which it applies. The investment menu identifier and investment option identifier would be reported as ‘ALL’.

Reporting tables

Tables described in this reporting form list each of the data fields required to be reported. The data fields are listed sequentially in the column order that they will appear in the reported data set. Constraints on the data that can be reported for each field have also been provided.

 

The Unique identifier column indicates which field or fields form the primary key of the table. Where a field has ‘Y’ in the Unique identifier column, this denotes that this field forms part of the primary key for the table. A blank cell in the Unique identifier column means that the field does not form part of the primary key for the table. Any specific combination of values in the fields that form the primary key of a table must not appear on more than one row in that table when reported.

 

Reporting basis and unit of measurement

SRF 706.0 captures all fees and costs that are proposed to be charged to a member or would otherwise affect member balances. It includes all standard and customised fee structures, such as fees and costs that would appear in the Product Disclosure Statement (PDS) for the superannuation product, and fees and costs relating to accessible products available on platform pursuant to the PDS for those accessible products.

Unless otherwise instructed, report all items on SRF 706.0 in accordance with the RG 97 version indicated in SRF 605.0.

All fees and costs reported on SRF 706.0 must be reported ‘gross of tax obligations’ where ‘gross of tax obligations’ refers to gross of income tax, GST and stamp duty.

This means the fees and costs must be reported prior to taking into account any benefit of a tax deduction relating to a fee that is passed on to a member either as a reduction in tax on contributions or through the deduction of a fee that is lower than what is reported to take account of the tax deduction.

Amounts in SRF 706.0 are to be reported as whole dollars, dollars and cents on a per member basis, or percentages. Percentages should be reported as an unconverted number to four decimal places. For example, 12.3456 per cent is to be reported as 0.123456.

Items on SRF 706.0 must be reported as at the reporting day.

Definitions

Terms highlighted in bold italics indicate that the definition is provided in Reporting Standard SRS 101.0 Definitions for Superannuation Data Collections (SRS 101.0).

Specific instructions

Table 1: Fees and costs disclosed

Report Table 1 as at the end of the reporting day.  Where fees and costs vary according to the combination of fees and costs arrangement, superannuation product, investment menu or investment option, indicate this by use of the appropriate identifier in relevant columns, otherwise make use of ‘ALL’ as described above.

 

All fees and costs data under SRS 706.0 should be reported as the annual fee disclosed or the fee per activity disclosed as at the reporting date. Where a fee or cost is calculated or charged more frequently than annually, the RSE licensee should report the calculation frequency in column 10, and the charge frequency in column 11. The RSE licensee should report the percentage or dollar charge in column 17 or 20 as the fee or cost per annum regardless of the calculation or charge frequency. Where a fee or cost is calculated or charged per activity, the RSE licensee should report the percentage or dollar charge in column 17 or 20 as the fee or cost per activity

 

Column

Field name

Unique identifier

Applicable to

Valid values

Description

1

Fees And Costs Arrangement Identifier

Y

All filers

No more than 20 alpha-numeric characters (with no special characters)

Report the fees and costs arrangement identifier that the fee or cost relates to. The fees and costs arrangement identifier must correspond to a fees and costs arrangement identifier reported in SRF 605.0.

2

Superannuation Product Identifier

Y

All filers

No more than 20 alpha-numeric characters (with no special characters)

Report the superannuation product identifier that the fee or cost relates to. The superannuation product identifier must correspond to a superannuation product identifier reported in SRF 605.0.

If the fee or cost incurred does not depend on the superannuation product, report ‘ALL’.

3

Investment Menu Identifier

Y

All filers

No more than 20 alpha-numeric characters (with no special characters)

Report the investment menu identifier that the fee or cost relates to. The investment menu identifier must correspond to an investment menu identifier reported in SRF 605.0.

If the fee or cost incurred does not depend on the investment menu, report ‘ALL’.

4

Investment Option Identifier

Y

All filers

No more than 20 alpha-numeric characters (with no special characters)

Report the investment option identifier that the fee or cost relates to. The investment option identifier must correspond to an investment option identifier reported in SRF 605.0.

If the fee or cost incurred does not depend on the investment option, report ‘ALL’.

5

Fees And Costs Disclosed Description Text

Y

All filers

Free text

Report a brief description of the fee or cost.

6

Fees And Costs Component Type

Y

All filers

·         Indirect Costs

·         Indirect Cost Ratio

·         Fees Deducted Directly From Member Account

·         Other Fees And Costs

Report the fees and costs component type of the fee or cost.

7

Fees And Costs Component Activity Type

Y

All filers

·         Investment

·         Administration

·         Transaction

·         Advice

·         Member Activity

Report the fees and costs component activity of the fee or cost.

A fee or cost can only be characterised as being related to one component activity.

8

Investment Charge Type

Y

All filers

·         Base

·         Performance Linked

·         Not Applicable

Report the investment charge type for the fee or cost.

For fees or costs where a fees and costs component activity other than Investment has been reported, the investment charge type should be reported as Not Applicable.

9

Activity Fee Type

Y

All filers

·         Advice Fee

·         Brokerage Fee

·         Buy Sell Spread

·         Contribution Fee

·         Contribution Splitting Fee

·         Dishonoured Payment Fee

·         Establishment Fee

·         Family Law

·         Financial Advice

·         Financial Hardship Application

·         Insurance Fee

·         Lost Member Search Fee

·         No TFN Tax Recovery Fee

·         Non Intrafund Advice Fee

·         Switching Fee

·         Withdrawal Fee

·         Other

·         Not Applicable

Report the activity fee type for the fee or cost.

For fees or costs where a fees and costs component activity other than Member Activity has been reported, the activity fee type should be reported as Not Applicable.

10

Fees And Costs Calculation Frequency Type

Y

All filers

·         Annual

·         Biannual

·         Quarterly

·         Monthly

·         Weekly

·         Daily

·         Per Activity

·         Other

Report the frequency that the fee or cost is calculated.

11

Fees And Costs Charge Frequency Type

Y

All filers

·         Annual

·         Biannual

·         Quarterly

·         Monthly

·         Weekly

·         Daily

·         Per Activity

·         Other

Report the frequency that the fee or cost is charged.

12

Tier Type

Y

All filers

·         Flat

·         Marginal

·         Not Applicable

Where the value of the fee or cost is dependent on a tiering structure, report the tier type, otherwise report Not Applicable.

13

Tier Arrangement Identifier

Y

All filers

Whole numbers

Where the value of the fee or cost is dependent on a tiering structure, report the tier arrangement, otherwise report 0.

14

Tier Number Identifier

Y

All filers

Whole numbers

Where the value of the fee or cost is dependent on a tiering structure, report the tier number, otherwise report 0.

15

Lower Bound Tier Account Balance Amount

 

All filers

Whole dollars

Where the value of the fee or cost is dependent on a tiering structure, report the tier lower bound, otherwise leave this field blank.

If there is no tier lower bound, this field should be left blank.

16

Upper Bound Tier Account Balance Amount

 

All filers

Whole dollars

Where the value of the fee or cost is dependent on a tiering structure, report the tier upper bound, otherwise leave this field blank.

If there is no tier upper bound, this field should be left blank.

17

Flat Dollar Amount

 

All filers

Dollars and cents

Report the flat dollar amount of the fee or cost, where one exists, otherwise leave this field blank.

18

Charge Minimum Percent

 

All filers

Percentage to 4 decimal places

Report the minimum charge (%), where one exists, otherwise leave this field blank.

19

Charge Maximum Percent

 

All filers

Percentage to 4 decimal places

Report the maximum charge (%), where one exists, otherwise leave this field blank.

20

Expense Or Benefit Account Balance Percent

 

All filers

Percentage to 4 decimal places

Report the percentage value (% of balance) of the fee or cost, where one exists, otherwise report 0%.

21

Expense Or Benefit Transaction Percent

 

All filers

Percentage to 4 decimal places

Report the percentage value (% of transaction) of the fee or cost, where one exists, otherwise report 0%.

22

Charge Minimum Amount

 

All filers

Dollars and cents

Report the minimum charge ($), where one exists, otherwise leave this field blank.

23

Charge Maximum Amount

 

All filers

Dollars and cents

Report the maximum charge ($), where one exists, otherwise leave this field blank.

24

Free Activities Count

 

All filers

Whole numbers

Report the number of free activities for the fee or cost.

For fees or costs where a fees and costs component activity other than Member Activity has been reported, this field should be left blank.

 



[1] For the purposes of this Reporting Standard, an RSE licensee’s ‘business operations’ includes all activities it conducts as an RSE licensee (including the activities of each RSE of which it is the licensee), and all other activities of the RSE licensee to the extent that they are relevant to, or may impact on, its activities as an RSE licensee. For the avoidance of doubt, if the RSE licensee is trustee of more than one RSE, defined benefit RSE or ERF, the RSE licensee must separately provide the information required by this Reporting Standard for each RSE, defined benefit RSE or ERF within its business operations. An RSE licensee that does not have any RSEs, defined benefit RSEs or ERFs within its business operations is not required to provide information under this Reporting Standard.

[2] Refer also to Prudential Standard SPS 310 Audit and Related Matters (SPS 310).

[3] Refer to Prudential Standard SPS 510 Governance.

[4] For the purposes of this Reporting Standard, ‘pooled superannuation trust’ has the meaning given in subsection 10(1) of the SIS Act, ‘small APRA fund’ means a superannuation entity that is a regulated superannuation fund, within the meaning of the SIS Act, which has fewer than five members and ‘single member approved deposit fund’ means a superannuation entity that is an approved deposit fund, within the meaning of the SIS Act, which has only one member.