Superannuation Industry (Supervision) Regulations (Amendment) (Cth)

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Statutory Rules 1997

No. 117 1

__________________

Superannuation Industry (Supervision) Regulations 2(Amendment)

I, The Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council and under section 4 of the Acts Interpretation Act 1901, make the following Regulations under the Superannuation Industry (Supervision) Act 1993.

Dated 28 May 1997.

WILLIAM DEANE

Governor-General

By His Excellency’s Command,

C. R. KEMP

Assistant Treasurer

____________

1. Commencement

1.1 Subregulations 9.5, 10.5 and 15.1 commence on 1 October 1997.

1.2 The remainder of these Regulations commence on 1 July 1997.

2. Amendment

2.1 The Superannuation Industry (Supervision) Regulations are amended as set out in these Regulations.

3. Regulation 1.03 (Interpretation)

3.1 Subregulation 1.03 (1) (definition of “reviewable decision”):

After paragraph (b), insert:

“(ba)
to determine consent for the purposes of subregulation 4.12 (2) and paragraph 6.27B (b); or”.

3.2 Subregulation 1.03 (1) (definition of “withdrawal benefit”, paragraphs (i) and (ii)):

Omit the paragraphs, substitute:

“(a)
the member; and
(b)
the trustee of another entity in respect of the member; and
(c)
an RSA in respect of the member;”.

3.3 Subregulation 1.03 (1):

Insert the following definitions:

“‘lost RSA holder’ has the meaning given by regulation 1.06 of the RSA Regulations;

‘RSA Act’ means the Retirement Savings Accounts Act 1997;

‘RSA holder’ has the same meaning given to the term “holder” in section 9 of the RSA Act;

‘RSA institution’ has the meaning given by section 11 of the RSA Act;

‘RSA Regulations’ means the Retirement Savings Accounts Regulations;”.

4. Regulation 1.03A (Lost member)

4.1 After paragraph 1.03A (1) (c), insert:

“; or (ca)
the member joined the fund from an RSA provider as a lost RSA holder;”.

5. Regulation 1.04 (Section 10 of the Act—prescribed matters)

5.1 Subparagraph 1.04 (5) (a) (iv):

Omit “section 116GC”, substitute “section 111B”.

5.2 Subparagraph 1.04 (5) (a) (v):

Omit “Division 8 of Part III”, substitute “section 116GC”.

6. Regulation 2.01 (Interpretation)

6.1 Subregulation 2.01 (1):

Insert the following definitions:

“‘building society’ has the same meaning as in section 16 of the RSA Act;

‘capital guaranteed’, in relation to a policy,has the meaning given by subsection 14 (2) of the RSA Act;

‘capital guaranteed fund’ means a public offer superannuation fund, or a sub-fund of a public offer superannuation fund, that has the following characteristics:

(a)
its investments comprise 1 or more of the following only:
(i)
deposits with an approved bank;
(ii)
deposits with a building society;
(iii)
deposits with a credit union;
(iv)
investments in a capital guaranteed policy;
(b)
the contributions and accumulated earnings of its members cannot be reduced by negative investment returns (within the meaning of subregulation 5.01 (1)) or by any reduction in the value of its assets;

‘credit union’ has the same meaning as in section 16 of the RSA Act;

‘policy’ has the same meaning as in section 16 of the RSA Act;

‘prescribed earning rate’, in relation to a fixed-rate option offered by a capital guaranteed fund for a period, means the earning rate declared, in advance, by the fund;

‘sub-fund’, in relation to a capital guaranteed fund, means a segment of a public offer superannuation fund that has the following characteristics:

(a)
the sub-fund has separately identifiable assets and separately identifiable beneficiaries;
(b)
each beneficiary of the sub-fund has an interest only in the assets of the sub-fund and not in the other assets of the public offer superannuation fund;
(c)
there is no transfer of assets, benefits or money between the sub-fund and another sub-fund without a transfer of a corresponding beneficial interest;
(d)
the insurance and administration costs of the sub-fund are attributable only to that sub-fund;”.

7. Regulation 2.05 (Members to whom trustees are not required to give information)

7.1 Paragraph 2.05 (1) (c):

Omit the paragraph, substitute:

“(c)
the member is a person who was transferred to the superannuation entity and, at the time of the transfer:
(i)
the trustee of the transferor fund has fulfilled the requirements of paragraph (a) or (b) in relation to the person; or
(ii)
the RSA provider has fulfilled the requirements of paragraph 2.04 (1) (a) or (b) of the RSA Regulations in relation to the person.”.

8. Regulation 2.08 (Application)

8.1 Paragraph 2.08 (2) (b):

Omit the paragraph, substitute:

“(b)
by the trustee of an eligible rollover fund before the issuing of an interest by the trustee to:
(i)
a beneficiary of another fund under section 243 of the Act; or
(ii)
an RSA holder under section 89 of the RSA Act; or”.

[NOTE: Note 4 of the notes following regulation 2.08 should be replaced by the following note:

“4.

The disclosure requirements in respect of eligible rollover funds regarding persons who become members of the fund under section 243 of the Act or under section 89 of the RSA Act are set out in Division 2.3 of these Regulations; see also subsection 157 (4) of the Act.”.]

9. Regulation 2.10 (Information to prospective members)

9.1 Paragraphs 2.10 (1) (a) and (b):

Omit the paragraphs, substitute:

“(a)
subject to paragraph (c), in every case—the information specified in subregulation (2); and
(b)
subject to paragraph (c), additionally, in the case of a fund other than an excluded fund—the information specified in subregulation (3); and
(c)
in the case of a capital guaranteed fund—either:
(i)
the information specified in subregulations (2) and (3); or
(ii)
the information specified in subregulation (3A).”.

9.2 Subregulation 2.10 (2):

Omit “(applicable to all funds)”, substitute “and subparagraph (1) (c) (i)”.

9.3 Subregulation 2.10 (3):

Omit “(applicable to funds other than excluded funds)”, substitute “and subparagraph (1) (c) (i)”.

9.4 Paragraph 2.10 (3) (d):

Omit “subregulation (4)”, substitute “subregulation (6)”.

9.5 Subregulation 2.10 (3):

Add at the end:

“; (m)
in the case of a capital guaranteed fund that has chosen to comply with subregulation (2) and this subregulation—a statement:
(i)
that outlines the effect of the lower-risk/lower-return nature of the product on possible benefits in the long term; and
(ii)
that there are other superannuation arrangements that may provide a greater return over the long term; and
(iii)
that the person may wish to seek information about the rates of return of those superannuation arrangements; and

(iv)
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.”.

9.6 After subregulation 2.10 (3), insert:

“(3A) The information referred to in subparagraph (1) (c) (ii) comprises each of the following items of information where applicable:

(a)
the contact details of the fund;
(b)
the name and ACN or ARBN of the trustee;
(c)
a statement:
(i)
that outlines the effect of the lower-risk/lower-return nature of the product on possible benefits in the long term; and
(ii)
that there are other superannuation arrangements that may provide a greater return over the long term; and
(iii)
that the person may wish to seek information about the rates of return of those superannuation arrangements;
(d)
if the governing rules of the fund meet the standards of subregulation 1.06 (4)—a statement that:
(i)
the amount that the person can take out each year is subject to minimum and maximum limits set by the Government; and
(ii)
an allocated pension may not provide an income stream for the rest of the person’s life; and
(iii)
payments will only be made while there is money in the allocated pension provided by the fund;
(e)
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;
(f)
a brief statement on the benefits that the person may become entitled to on becoming a member of the fund;
(g)
a brief statement of who may contribute to the fund;
(h)
a brief statement of when benefits are payable;
(i)
a brief statement of the taxation of the fund and benefits;
(j)
if a fixed-rate option is, or fixed-rate options are, offered by the fund in relation to the whole, or a part, of the benefits—a statement of the prescribed earning rate of each fixed-rate option and the term to which that prescribed earning rate applies;
(k)
if a variable-rate option is, or variable-rate options are, offered by the fund in relation to the whole, or a part, of the benefits:
(i)
a statement that the earning rate, or earning rates, may increase or decrease over time; and
(ii)
the actual or notional net earning rate for the same class of, or similar, options offered by the fund for each year of the previous 5 years; and
(iii)
the compound average of the annual actual or notional rate of net earnings for the same class of, or similar, options offered by the fund for each year of the previous 5 years; and
(iv)
a statement that past earning rates are not an indicator of future earning rates;
(l)
a summary of fees and charges that may be charged directly to the fund;
(m)
a brief statement about the effect of the member-protection standards;
(n)
if fees and charges are deducted before earnings are credited to the fund—a statement to the effect that earnings are credited net of all expenses;
(o)
details (in summary form) of arrangements that the fund has to deal with inquiries or complaints;
(p)
details of the existence and (in outline terms) the functions of the Superannuation Complaints Tribunal;
(q)
if Division 6 of Part 19 of the Act (cooling-off—redemption of interests) applies to the fund—a summary of the provisions of that Division relating to the
cooling-off period;
(r)
a copy, or an updated version, of the information required to be given under Subdivision 2.4.3, that was most recently given to members of the fund;

(s)
a statement of the circumstances in which the trustee will pay the member’s benefits to an eligible rollover fund, the effect of that payment and the contact details of the eligible rollover fund;
(t)
a statement that further information is available on request.”.

9.7 Subregulation 2.10 (4):

Omit the subregulation, substitute:

“(4) If a variable-rate option has not been in existence for 5 years, the references in subparagraphs (3A) (k) (ii) and (iii) to 5 years are taken to be references to the whole period of existence of the option.

“(5)The information mentioned in subparagraphs (3A) (k) (ii) and (iii) must not have been first published or issued by the fund more than 15 months before the date the information was given to the person.

“(6) In this regulation:

‘fund’ includes a capital guaranteed fund;

‘significant benefit’ means a financial benefit that the trustee reasonably believes a member would reasonably expect to be told about.”.

10. Regulation 2.11 (Information by public offer superannuation funds to prospective standard employer-sponsors)

10.1 Paragraphs 2.11 (1) (a) and (b):

Omit the paragraphs, substitute:

“(a)
subject to paragraph (c), in every case—the information specified in subregulation (2); and
(b)
subject to paragraph (c), additionally, in the case of a fund other than an excluded fund—the information specified in subregulation (3); and
(c)
in the case of a capital guaranteed fund—either:
(i)
the information specified in subregulations (2) and (3); or
(ii)
the information specified in subregulation (3A).”.

10.2 Subregulation 2.11 (2):

Omit “(applicable to all funds)”, substitute “and subparagraph (1) (c) (i)”.

10.3 Subregulation 2.11 (3):

Omit “(applicable to funds other than excluded funds)”, substitute “and subparagraph (1) (c) (i)”.

10.4 Paragraph 2.11 (3) (d):

After “significant benefits”, insert “(as defined in subregulation (6))”.

10.5 Subregulation 2.11 (3):

Add at the end:

“; (l)
in the case of a capital guaranteed fund that has chosen to comply with subregulation (2) and this subregulation—a statement:
(i)
that outlines the effect of the lower-risk/lower-return nature of the product on possible benefits in the long term; and
(ii)
that there are other superannuation arrangements that may provide a greater return over the long term; and
(iii)
that the person may wish to seek information about the rates of return of those superannuation arrangements; and
(iv)
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.”.

10.6 After subregulation 2.11 (3), insert:

“(3A) The information referred to in subparagraph (1) (c) (ii) comprises each of the following items of information where applicable:

(a)
the contact details of the fund;
(b)
the name and ACN or ARBN of the trustee;
(c)
a statement:
(i)
that outlines the effect of the lower-risk/lower-return nature of the product on possible benefits in the long term; and
(ii)
that there are other superannuation arrangements that may provide a greater return over the long term; and
(iii)
that the person may wish to seek information about the rates of return of those superannuation arrangements;
(d)
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;
(e)
a brief statement on the benefits that the person may become entitled to on becoming a member of the fund;
(f)
a brief statement of who may contribute to the fund;
(g)
a brief statement of when benefits are payable;
(h)
a brief statement of the taxation of the fund and benefits;
(i)
if a fixed-rate option is, or fixed-rate options are, offered by the fund in relation to the whole, or a part, of the benefits—a statement of the prescribed earning rate of each fixed-rate option and the term to which that prescribed earning rate applies;
(j)
if a variable-rate option is, or variable-rate options are, offered by the fund in relation to the whole, or a part, of the benefits:
(i)
a statement that the earning rate, or earning rates, may increase or decrease over time; and
(ii)
the actual or notional net earning rate for the same class of, or similar, options offered by the fund for each year of the previous 5 years; and
(iii)
the compound average of the annual actual or notional rate of net earnings for the same class of, or similar, options offered by the fund for each year of the previous 5 years; and
(iv)
a statement that past earning rates are not an indicator of future earning rates;
(k)
a summary of fees and charges that may be charged directly to the fund;
(l)
a brief statement about the effect of the member-protection standards;
(m)
if fees and charges are deducted before earnings are credited to the fund—a statement to the effect that earnings are credited net of all expenses;
(n)
details (in summary form) of arrangements that the fund has to deal with inquiries or complaints;
(o)
details of the existence and (in outline terms) the functions of the Superannuation Complaints Tribunal;
(p)
a copy, or an updated version, of the information required to be given under Subdivision 2.4.3, that was most recently given to members of the fund;
(q)
a statement of the circumstances in which the trustee will pay the member’s benefits to an eligible rollover fund, the effect of that payment and the contact details of the eligible rollover fund;
(r)
a statement that further information is available on request.”.

10.7 Subregulation 2.11 (4):

Omit the subregulation, substitute:

“(4) If a variable-rate option has not been in existence for 5 years, the references in subparagraphs (3A) (j) (ii) and (iii) to 5 years are taken to be references to the whole period of existence of the option.

“(5)The information mentioned in subparagraphs (3A) (j) (ii) and (iii) must not have been first published or issued by the fund more than 15 months before the date the information was given to the person.

“(6) In this regulation:

‘fund’ includes a capital guaranteed fund;

‘significant benefit’ means a financial benefit that the trustee reasonably believes a person in the position of the person mentioned in subregulation (1) would reasonably expect to be told about.”.

11. Regulation 2.11A (Information by eligible rollover funds to trustees of transferor funds and to RSA providers)

11.1 Subregulation 2.11A (1):

Omit the subregulation, substitute:

“(1) The information that the trustee of an eligible rollover fund must be satisfied has been received by:

(a)
the trustee of a transferor fund before a beneficiary of the transferor fund is issued with a superannuation interest under section 243 of the Act; or
(b)
the RSA provider before an RSA holder is issued with a superannuation interest under section 89 of the RSA Act;

is the information specified in subregulation (2).”.

12. Regulation 2.12 (Application)

12.1 Subparagraph 2.12 (1) (b) (ii):

Omit “Act; and”, substitute “Act or section 89 of the RSA Act; and”.

13. New regulation 2.14A

13.1 After regulation 2.14, insert:

Compliance by trustee of capital guaranteed fund

“2.14A. The trustee of a capital guaranteed fund must comply with either:

(a)
regulations 2.15 and 2.16; or
(b)
regulation 2.16A.”.

14. Regulation 2.15 (General requirement)

14.1 Add at the end:

“(2) In this regulation, ‘fund’ includes a capital guaranteed fund.”.

15. Regulation 2.16 (Specific requirements in all cases)

15.1 Subregulation 2.16 (1):

Add at the end:

“; (k)
in the case of a capital guaranteed fund that has chosen to comply with regulation 2.15 and this regulation—a statement:
(i)
that outlines the effect of the lower-risk/lower-return nature of the product on possible benefits in the long term; and
(ii)
that there are other superannuation arrangements that may provide a greater return over the long term; and
(iii)
that the person may wish to seek information about the rates of return of those superannuation arrangements; and
(iv)
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.”.

15.2 Subregulation 2.16 (2):

Omit the subregulation, substitute:

“(2) In this regulation:

‘fund’ includes a capital guaranteed fund;

‘significant benefit’ means a financial benefit that the trustee reasonably believes a member would reasonably expect to be told about.”.

16. New regulation 2.16A

16.1 After regulation 2.16, insert in Division 2.3 of Part 2:

Specific requirement in relation to capital guaranteed funds

“2.16A.(1)The trustee of a capital guaranteed fund must give to each person who becomes a member of the fund each of the following items of information where applicable:

(a)
the contact details of the fund;
(b)
the name and ACN or ARBN of the trustee;
(c)
a statement:
(i)
that outlines the effect of the lower-risk/lower-return nature of the product on possible benefits in the long term; and
(ii)
that there are other superannuation arrangements that may provide a greater return over the long term; and
(iii)
that the person may wish to seek information about the rates of return of those superannuation arrangements;
(d)
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;
(e)
a brief statement on the benefits that the person may become entitled to on becoming a member of the fund;
(f)
a brief statement of who may contribute to the fund;
(g)
a brief statement of when benefits are payable;
(h)
a brief statement of the taxation of the fund and benefits;
(i)
if a fixed-rate option is, or fixed-rate options are, offered by the fund in relation to the whole, or a part, of the benefits—a statement of the prescribed earning rate of each fixed-rate option and the term to which that prescribed earning rate applies;
(j)
if a variable-rate option is, or variable-rate options are, offered by the fund in relation to the whole, or a part, of the benefits:
(i)
a statement that the earning rate, or earning rates, may increase or decrease over time; and
(ii)
the actual or notional net earning rate for the same class of, or similar, options offered by the fund for each year of the previous 5 years; and

(iii)
the compound average of the annual actual or notional rate of net earnings for the same class of, or similar, options offered by the fund for each year of the previous 5 years; and
(iv)
a statement that past earning rates are not an indicator of future earning rates;
(k)
a summary of fees and charges that may be charged directly to the fund;
(l)
a brief statement about the effect of the member-protection standards;
(m)
if fees and charges are deducted before earnings are credited to the fund—a statement to the effect that earnings are credited net of all expenses;
(n)
details (in summary form) of arrangements that the fund has to deal with inquiries or complaints;
(o)
details of the existence and (in outline terms) the functions of the Superannuation Complaints Tribunal;
(p)
a copy, or an updated version, of the information required to be given under Subdivision 2.4.3, that was most recently given to members of the fund;
(q)
a statement of the circumstances in which the trustee will pay the member’s benefits to an eligible rollover fund, the effect of that payment and the contact details of the eligible rollover fund;
(r)
a statement that further information is available on request.

“(2) If a variable-rate option has not been in existence for 5 years, the references in subparagraphs (1) (j) (ii) and (iii) to 5 years are taken to be references to the whole period of existence of the option.

“(3)The information mentioned in subparagraphs (1) (j) (ii) and (iii) must not have been first published or issued by the fund more than 15 months before the date the information is given to the person.”.

17. Regulation 2.22 (General requirement)

17.1 After “The trustee of a fund”, insert “(other than a capital guaranteed fund)”.

18. Regulation 2.23 (Specific requirements in all cases)

18.1 Omit “excluded fund)”, substitute “excluded fund or a capital guaranteed fund)”.

19. Regulation 2.24 (Specific requirements in particular cases)

19.1 Subregulation 2.24 (1):

Omit “excluded fund)”, substitute “excluded fund or a capital guaranteed fund)”.

20. New regulations 2.24A and 2.24B

20.1 After regulation 2.24, insert:

Specific requirements in relation to capital guaranteed funds

“2.24A.(1)The trustee of a capital guaranteed fund must give to each member all of the following items of information:

(a)
the contact details of the fund;
(b)
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;
(c)
the amount of the member’s withdrawal benefit at the start of the reporting period;
(d)
the amount of the member’s withdrawal benefit at the end of the reporting period and the method by which that amount was worked out;
(e)
the amount (if any) of the member’s withdrawal benefit at the end of the reporting period that consists of preserved benefits within the meaning of Subdivision 6.1.2;
(f)
the amount (if any) of the member’s withdrawal benefit at the end of the reporting period that consists of restricted non-preserved benefits within the meaning of Subdivision 6.1.3;
(g)
the amount (if any) of the member’s withdrawal benefit at the end of the reporting period that consists of unrestricted non-preserved benefits within the meaning of Subdivision 6.1.4;
(h)
if there are circumstances in which the trustee would pay the member’s benefit to an eligible rollover fund:
(i)
details of those circumstances; and
(ii)
the contact details of the eligible rollover fund; and
(iii)
a statement of the effect of the payment of benefits to the eligible rollover fund;
(i)
a statement:
(i)
that outlines the effect of the lower-risk/lower-return nature of the product on possible benefits in the long term; and
(ii)
that there are other superannuation arrangements that may provide a greater return over the long term; and
(iii)
that the member may wish to seek information about the rates of return of those superannuation arrangements.

“(2)Subject to subregulation (3), the trustee of a capital guaranteed fund must give to each member details of the following matters in respect of the member so far as they are applicable:

(a)
the amount of the member’s contributions during the reporting period;
(b)
the amount of benefits rolled-over or otherwise transferred into the fund during the reporting period;
(c)
the amount of withdrawals during the reporting period;
(d)
the amounts of fees, charges and other expenses deducted by the fund during the reporting period from amounts held in any accounts in respect of the member;
(e)
the amount of any allotment of employer contributions during the reporting period;
(f)
the amount of any allotment of net earnings during the reporting period;
(g)
the rate of any allotment of net earnings during the reporting period;
(h)
the amount of bonuses that have accrued at the end of the reporting period;
(i)
the amount of the sum assured;
(j)
the amount payable in the event of the member’s death:
(i)
at the end of the reporting period; or
(ii)
on the first day of the next reporting period;
or the method by which that amount is worked out;

(k)
details, including the amount or method of working out, of other significant benefits (as defined in subregulation (4)), including, in particular, disability benefits;
(l)
if the trustee is aware of contributions that are due and payable during the reporting period but have not been paid to the fund at, or shortly before, the date of issue of the report, details of the amount of those contributions and of action that the trustee has taken, or proposes to take, to have the contributions paid.

“(3) A nil amount need not be disclosed.

“(4) In this regulation, ‘significant benefits’ means financial benefits that the trustee reasonably believes a member would reasonably expect to be told about.

Information if benefits in capital guaranteed fund reaches $10,000

“2.24B.(1)If, at the end of a reporting period, the amount of the benefits of a member in a capital guaranteed fund is at least $10,000, the trustee of the fund must give written notice of that fact at the time when the trustee gives to the member the items of information referred to in regulation 2.24A for that reporting period.

“(2) The notice must include:

(a)
a statement that the information contained in the notice is important and that the notice must be read carefully; and
(b)
a statement that outlines the effect of the lower-risk/lower-return nature of the product on possible benefits in the long term; and
(c)
a suggestion 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 strategies that may be more suitable.

“(3) The notice must be prominent and set in bold type on a separate sheet of paper.”.

21. Regulation 2.28 (Specific requirements in all cases)

21.1 Paragraphs 2.28 (d) and (e):

Omit the paragraphs, substitute:

“(d)
details (in summary form) of arrangements that the fund has to deal with inquiries or complaints.”.

22. Regulation 2.36 (Specific requirements)

22.1 Subregulation 2.36 (3):

Omit the subregulation, substitute:

“(3) If:

(a)
a member of a fund is transferred to a different category of membership or to a different fund; or
(b)
the benefits of a member are transferred to an RSA;

the trustee of the first-mentioned fund must give information to the member concerning the transfer.”.

23. Regulation 2.36A (Specific requirements—benefit to be paid to eligible rollover fund)

23.1 Subregulation 2.36A (1):

After “another entity”, insert “or an RSA”.

23.2 Subregulation 2.36A (1):

Omit “that other entity or the eligible rollover fund”, substitute “that other entity, the RSA or eligible rollover fund”.

23.3 Paragraph 2.36A (2) (e):

After “an entity”, insert “or RSA”.

23.4 Subregulation 2.36A (4):

After “about”, insert “RSAs, or”.

24. Regulation 2.40 (General requirement)

24.1 Paragraph 2.40 (2) (c):

After “in relation to which”, insert “the trustee of”.

25. New Division 2.6A

25.1 After Division 2.6, insert:

“Division 2.6A—Information in respect of inquiries and complaints

Application

“2.41A.(1)This Division applies in the case where a trustee of a regulated superannuation fund or an approved deposit fund receives an inquiry or complaint from a person referred to in subsection 101 (1A) of the Act on or after 1 July 1997.

“(2)For the purposes of subsections 31 (1) and 32 (1) of the Act, a requirement of this Division is a standard applicable to the operation of a regulated superannuation fund or an approved deposit fund.

Information in respect of inquiries and complaints

“2.41B.The trustee must give to the person, at the time when the trustee deals with the inquiry or complaint, details of the existence and (in outline terms) the functions of the Superannuation Complaints Tribunal.”.

26. Regulation 2.45 (General requirement)

26.1 Regulation 2.45:

Omit “a fund, the trustee”, substitute “a fund (other than a capital guaranteed fund), the trustee”.

27. Regulation 2.46 (Specific requirements in all cases)

27.1 Paragraphs 2.46 (1) (f) and (g):

Omit the paragraphs, substitute:

“(f)
details (in summary form) of arrangements that the fund has to deal with inquiries or complaints.”.

27.2 Paragraph 2.46 (2) (a):

Omit the paragraph, substitute:

“(a)
a statement setting out details (in summary form) of arrangements that the fund has to deal with inquiries or complaints; or”.

28. Regulation 2.48 (Exceptions to “exit reporting period” provisions)

28.1 Subregulation 2.48 (3):

Omit “another fund if:”, substitute “another fund or to a member whose benefits are being transferred into an RSA if:”.

28.2 Paragraph 2.48 (3) (b):

Omit the paragraph, substitute:

“(b)
the trustee reasonably believes that the member does not need the information because the member has received, or will receive, from:
(i)
the trustee of the fund to which the member is being transferred, information under Subdivision 2.4.2 in respect of the member’s exit reporting period; or
(ii)
the RSA institution to which the member’s benefits are being transferred, information under Division 2.3 of the RSA Regulations in respect of the member’s exit reporting period.”.

29. Regulation 4.12 (Operating standard—acceptance by regulated superannuation funds and approved deposit funds of rollovers and transfers)

29.1 After “trustee of a fund”, insert “(‘the receiving trustee’)”.

29.2 Omit “approved deposit fund if:”, substitute “approved deposit fund, or from an RSA, (‘the transferring entity’) if:”.

29.3 Paragraphs 4.12 (a) and (b):

Omit the paragraphs, substitute:

“(a)
the receiving trustee has reasonable grounds to believe that the benefit being rolled over or transferred is being rolled over or transferred on the basis of a belief held by the trustee or RSA provider of the transferring entity (as the case requires) that the receiving trustee has received the member’s or RSA holder’s consent to the rollover or transfer; and
(b)
the receiving trustee has not received that consent.”.

29.4 Add at the end:

“(2) In this regulation:

‘consent’ means:

(a)
written consent; or
(b)
any other form of consent determined by the Commissioner as sufficient in the circumstances.”.

30. Regulation 5.01 (Interpretation)

30.1 Subregulation 5.01 (1) (definition of “OSS Laws”):

Omit the definition, substitute:

“‘OSS Laws’ means:

(a)
the Occupational Superannuation Standards Act 1987 as in force immediately before the commencement of section 5 of the Occupational Superannuation Standards Amendment Act 1993; and
(b)
the Occupational Superannuation Standards Regulations;”.

30.2 Subregulation 5.01 (1) (definition of “superannuation system”):

Add at the end:

“; and (f)
the Commissioner of Taxation in the Commissioner of Taxation’s role as the recipient of unclaimed money that is paid to the Commissioner of Taxation under subsection 83 (1) of the RSA Act; and
(g)
a State or Territory, or a State or Territory Authority, in its role as the recipient of unclaimed money under subsection 84 (1) of the RSA Act; and
(h)
RSAs; and
(i)
annuities;”.

30.3 Subregulation 5.01 (1) (definition of “transferred”):

Omit the definition, substitute:

“‘transferred’, in relation to a member’s benefits in a fund (the ‘transferor fund’), means paid from the transferor fund:

(a)
to another fund; or
(b)
to an RSA provided by an RSA institution;

otherwise than upon the satisfaction by the member of a condition of release (within the meaning of Part 6) in respect of all those benefits.”.

31. Regulation 5.06 (Certain benefits rolled over or transferred to regulated superannuation funds taken to be minimum benefits)

31.1 Add at the end:

“(6) In this regulation :

‘benefits’ means benefits other than benefits rolled over or transferred to a regulated superannuation fund from an RSA.”.

32. New regulation 5.06A

32.1 After regulation 5.06, insert:

Benefits rolled over or transferred from an RSA to regulated superannuation funds taken to be minimum benefits

“5.06A.Benefits rolled over or transferred to a regulated superannuation fund from an RSA are taken to be minimum benefits in the regulated superannuation fund.”.

33. Regulation 5.17 (Member-protection standards)

33.1 Subregulation 5.17 (6):

After “does not apply”, insert “to a member (except for a member of a fund that is a capital guaranteed fund within the meaning of subregulation 2.01 (1))”.

34. Regulation 6.01 (Interpretation)

34.1 Subregulation 6.01 (2):

Insert the following definition:

“‘RSA changeover day’, in relation to an RSA holder, has the same meaning as in Part 4 of the RSA Regulations;”.

34.2 Subregulation 6.01 (6):

Omit “subregulation (1)”, substitute “subregulation (2)”.

34.3 Add at the end:

“(8) A reference in this Part to ‘preserved benefits’, ‘restricted non-preserved benefits’, ‘restricted non-preserved contributions’, ‘unrestricted non-preserved benefits’ and ‘post-65 employer-financed benefits’ includes benefits, or contributions (as the case may be), rolled over, or transferred, from an RSA.”.

35. Regulation 6.02 (Preserved benefits in regulated superannuation funds—before the changeover day)

35.1 Subregulation 6.02 (1):

After “regulations 6.04”, insert “, 6.04A”.

36. New regulation 6.04A

36.1 After regulation 6.04, insert:

Preserved benefits in RSAs—rollover or transfer to regulated superannuation funds during 1998

“6.04A.(1) If:

(a)
on a day during the 1998 calendar year that is, or is after, the day that is the RSA changeover day in relation to a person who is an RSA holder, benefits of that person are rolled over or transferred into a regulated superannuation fund (in this regulation called ‘the receiving fund’); and
(b)
the trustee of the receiving fund does not decide, on or before the day on which it receives those benefits, that day is the changeover day in respect of that person;

then, despite subregulation 6.02 (1), the portion of those benefits that is to be taken to be preserved benefits in the receiving fund is the same as the portion of those benefits that comprised preserved benefits immediately before the rollover or transfer.

“(2)Nothing in this regulation is to be taken as:

(a)
derogating from regulation 6.06 or 6.12 or Subdivision 6.1.5; or
(b)
affecting the operation of regulation 6.02 in relation to:
(i)
contributions made to the receiving fund; or
(ii)
benefits rolled over or transferred to the receiving fund from other regulated superannuation funds in relation to which a changeover day has not been decided in respect of the member whose benefits are rolled over or transferred.”.

37. Regulation 6.07 (Restricted non-preserved benefits in regulated superannuation funds—before the changeover day)

37.1 After “regulations 6.09”, insert “, 6.09A”.

38. Regulation 6.08 (Restricted non-preserved benefits in regulated superannuation funds—on and after the changeover day)

38.1 Subparagraph 6.08 (1) (a) (ii):

After “superannuation fund”, insert “or an RSA”.

38.2 Subparagraph 6.08 (1) (b) (ii):

After “superannuation fund”, insert “or an RSA”.

38.3 Subparagraph 6.08 (1) (b) (ii):

Omit “other fund;”, substitute “other fund or in that RSA;”.

38.4 Paragraph 6.08 (2) (a):

Omit “superannuation fund; and”, substitute “superannuation fund or an RSA; and”.

38.5 Paragraph 6.08 (2) (b):

Omit “other fund;”, substitute “other fund or in that RSA;”.

38.6 Paragraph 6.08 (3) (a):

Omit “superannuation fund; and”, substitute “superannuation fund or an RSA; and”.

38.7 Paragraph 6.08 (3) (b):

Omit “other fund;”, substitute “other fund or in that RSA;”.

39. Regulation 6.09 (Restricted non-preserved benefits in regulated superannuation funds—rollover or transfer between funds during 1996, 1997 or 1998)

39.1 Subregulation 6.09 (1):

Omit “regulation 6.07 (1),”, substitute “regulation 6.07,”.

40. New regulation 6.09A

40.1 After regulation 6.09, insert in Subdivision 6.1.3:

Restricted non-preserved benefits in RSAs—rollover or transfer to regulated superannuation funds during 1998

“6.09A.(1) If:

(a)
on a day during the 1998 calendar year that is, or is after, the day that is the RSA changeover day in relation to a person who is an RSA holder, benefits of that person are rolled over or transferred into a regulated superannuation fund (in this regulation called ‘the receiving fund’); and
(b)
the trustee of the receiving fund does not decide, on or before the day on which it receives those benefits, that day is the changeover day in respect of those benefits as benefits in the receiving fund;

then, despite regulation 6.07, the portion of those benefits that is to be taken to be restricted non-preserved benefits in the receiving fund is the same as the portion of those benefits that comprised restricted non-preserved benefits immediately before the rollover or transfer.

“(2) Nothing in this regulation is to be taken as:

(a)
derogating from regulation 6.12 or Subdivision 6.1.5; or
(b)
affecting the operation of regulation 6.07 in relation to:
(i)
contributions made to the receiving fund;
(ii)
benefits rolled over or transferred to the receiving fund from other regulated superannuation funds in relation to which a changeover day has not been decided in respect of the member whose benefits are rolled over or transferred.”.

41. Regulation 6.10 (Unrestricted non-preserved benefits—regulated superannuation funds)

41.1 Paragraph 6.10 (2) (b):

Add at the end:

“; or (iv)
RSAs.”.

42. Regulation 6.11 (Unrestricted non-preserved benefits—approved deposit funds)

42.1 Paragraph 6.11 (2) (b):

Add at the end:

“; or (iv)
RSAs.”.

43. Regulation 6.16 (Redistribution of member benefits within a fund in certain circumstances by operation of governing rules or action of trustee)

43.1 Subregulation 6.16 (2):

Omit the subregulation, substitute:

“(2) For the purposes of this Part, the governing rules of a fund, or the trustee of a fund, may alter the category of any of a member’s benefits in the fund but not so as to:

(a)
decrease the amount of the member’s preserved benefits in the fund; or
(b)
increase the amount of the member’s unrestricted
non-preserved benefits in the fund.”.

44. Regulation 6.21 (Compulsory cashing of benefits in regulated superannuation funds)

44.1 Subregulation 6.21 (1):

After “superannuation fund”, insert “(other than the member’s

post-65 employer-financed benefits)”.

44.2 After subregulation 6.21 (1), insert:

“(1A) Subject to subregulation (3), a member’s post-65 employer-financed benefits in a regulated superannuation fund must be cashed as soon as practicable after the occurrence of any of the following events:

(a)
where:
(i)
the member has reached age 65 but not age 70; and
(ii)
the member is not gainfully employed on either a full-time or part-time basis; and
(iii)
mandated employer contributions have ceased to be made, and are not liable to be made, in respect of the member to:
(A)
the fund; or
(B)
another regulated superannuation fund; or
(C)
an RSA;
(b)
where:
(i)
the member has attained age 70; and
(ii)
the member is not gainfully employed on a
full-time basis; and
(iii)
mandated employer contributions have ceased to be made, and are not liable to be made, in respect of the member to:
(A)
the fund; or

(B)
another regulated superannuation fund; or
(C)
an RSA;
(c)
where the member dies.”.

44.3 Subregulation 6.21 (3):

Omit “subregulation (1),”, substitute “subregulations (1) and (1A),”.

44.4 Add at the end:

“(4) Benefits in a regulated superannuation fund that were post-65 employer-financed benefits in the source from which they were received continue to be post-65 employer-financed benefits in that fund.

“(5) In this regulation:

‘post-65 employer-financed benefits’, in relation to a member of a regulated superannuation fund as at a particular date, means the sum of:

(a)
the amount of the mandated employer contributions made to the fund in respect of the member in respect of the period commencing when the member reached age 65 and ending on that date; and
(b)
the amount of the mandated employer contributions made to another regulated superannuation fund or to an RSA in respect of the member in respect of that period, if the benefits arising in respect of those contributions were transferred or rolled over to the fund during that period; and
(c)
the amount of the investment earnings on those amounts during that period;

less the costs applicable to those amounts during that period.”.

45. Regulation 6.22 (Limitation on cashing of benefits in regulated superannuation funds in favour of persons other than members or their legal personal representatives)

45.1 Subregulation 6.22 (1):

Omit “A member’s benefits”, substitute “Subject to regulation 6.22B, a member’s benefits”.

46. New regulation 6.22B

46.1 After regulation 6.22A, insert in Subdivision 6.3.1:

Circumstances in which benefits in regulated superannuation funds may be cashed in favour of persons other than members

“6.22B.A member’s benefits in a regulated superannuation fund may be cashed in favour of a person other than the member if:

(a)
the cashing is expressly permitted by the Commissioner in a written approval for the purposes of subparagraph 62 (1) (b) (v) of the Act; and
(b)
the benefits are cashed only to the extent of that approval.”.

47. Regulation 6.25 (Compulsory cashing of benefits in approved deposit funds)

47.1 Paragraph 6.25 (3) (a):

Omit “fund or”, substitute “fund or to an RSA, or”.

48. New regulation 6.27B

48.1 Before regulation 6.28, insert in Division 6.4 of Part 6:

Interpretation

“6.27B. In this Division:

‘consent’ means:

(a)
written consent; or
(b)
any other form of consent determined by the Commissioner as sufficient in the circumstances.”.

49. Regulation 6.28 (Rollover—regulated superannuation funds and approved deposit funds)

49.1 Paragraph 6.28 (a):

Omit “written”.

49.2 Paragraph 6.28 (b):

Omit the paragraph, substitute:

“(b)
the trustee of the fund believes, on reasonable grounds, that:
(i)
the trustee of the regulated superannuation fund or the approved deposit fund; or
(ii)
the RSA institution providing the RSA;
into which the benefits are to be rolled over has received, from the member, consent to the rollover.”.

50. Regulation 6.29 (Transfer—funds)

50.1 Regulation 6.29:

Omit “benefits in a regulated superannuation fund”, substitute “benefits in a fund”.

50.2 Paragraph 6.29 (a):

Omit “written”.

50.3 Paragraph 6.29 (b):

Omit the paragraph, substitute:

“(b)
the trustee of the fund believes, on reasonable grounds, that:
(i)
the trustee of the fund; or
(ii)
the RSA institution providing the RSA;
into which the benefits are to be transferred, has received, from the member, consent to the transfer; or”.

51. Regulation 7.02 (Application)

51.1 Omit the regulation, substitute:

Application

“7.02.This Part applies only to regulated superannuation funds.”.

[NOTE: The note following regulation 7.02 should be omitted.]

52. Regulation 7.04 (Acceptance of contributions—regulated superannuation funds)

52.1 After subregulation 7.04 (1A), insert:

“(1B) Subject to subregulation (2), a regulated superannuation fund may accept contributions that are made in respect of a member who has reached age 65 but not age 70 only if:

(a)
the contributions are mandated employer contributions; or
(b)
the member is gainfully employed on a part-time or
full-time basis.

“(1C) Subject to subregulation (2), a regulated superannuation fund may accept contributions that are made in respect of a member who has reached age 70 only if the contributions are mandated employer contributions.”.

52.2 Subregulation 7.04 (2):

Omit “subregulation (1),”, substitute “subregulation (1), (1B) or (1C),”.

53. Regulation 7.05 (Accrual of benefits—defined benefit funds)

53.1 After subregulation 7.05 (1A), insert:

“(1B) Subject to subregulation (2), a defined benefit fund may grant an accrual of benefits in respect of a member of the fund who has reached age 65 but not age 70 only if:

(a)
the accrual is attributable to mandated employer contributions; or
(b)
the member is gainfully employed on a part-time or
full-time basis.

“(1C) Subject to subregulation (2), a defined benefit fund may grant an accrual of benefits in respect of a member of the fund who has reached age 70 only if the accrual is attributable to mandated employer contributions.”.

53.2 Subregulation 7.05 (2):

Omit “subregulation (1), the”, substitute “subregulation (1), (1B) or (1C), the”.

54. Regulation 10.06 (Operating standards—eligible rollover funds)

54.1 Paragraph 10.06 (2) (a):

Omit the paragraph, substitute:

“(a)
benefits (other than pension benefits) paid from:
(i)
a superannuation fund (other than an eligible rollover fund); or
(ii)
an approved deposit fund (other than an eligible rollover fund); or
(iii)
an RSA; and”.

55. Subdivision 13.1.2 (Contribution and benefit accrual standards)

55.1 Omit the Subdivision.

56. Regulation 13.25 (Reconsideration of certain decisions)

56.1 Subregulation 13.25 (4):

Omit “21 days”, substitute “60 days”.

57. Transitional

57.1 The amendment of the Superannuation Industry (Supervision) Regulations made by regulation 56 of these Regulations applies in relation to requests made by a person under subregulation 13.25 (1) of the Superannuation Industry (Supervision) Regulations that are received by the Commissioner on or after 1 July 1997.

_____________________________________________________

NOTES

1. Notified in the Commonwealth of Australia Gazette on 29 May 1997.
2. Statutory Rules 1994 No. 57 as amended by 1994 Nos. 189 and 432; 1995 Nos. 47, 64, 142, 158, 159, 240, 293, 384 and 430; 1996 Nos. 44, 57, 122 and 344; 1997 No. 69.

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