Superannuation Industry (Supervision) Regulations (Amendment) (Cth)
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I, THE
GOVERNOR-GENERAL of the Commonwealth of Australia, acting with the advice of the
Federal Executive Council, make the following Regulations under the
Dated 29 November 1995.
BILL HAYDEN
Governor-General
By His Excellency’s Command,
PAUL ELLIOTT
Parliamentary Secretary to the Treasurer
for the
Treasurer
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[NOTE: The remainder of these Regulations commence on
gazettal: see
2.1 The Superannuation Industry (Supervision) Regulations are amended as set out in these Regulations.
3.1 Subregulation 1.03 (3):
Omit the subregulation, substitute:
For the purposes of the definition of ‘protected member’ in subregulation (1), a benefit in a fund is taken to contain or to have contained mandated employer-financed benefits unless:
(a) if the benefits arose in relation to contributions made before 1 July 1995—the trustee of the fund reasonably believes otherwise; or
(b) if the benefits arose in relation to contributions made on or after 1 July 1995—the trustee of the fund knows otherwise.”.
4.1 Subparagraph 2.05 (1) (a) (i):
Omit “or”, substitute “and”.
4.2 Subregulation 2.05 (1):
Add at the end:
“; or (c) the member was transferred to the superannuation entity and, at the time of the transfer, the trustee of the transferor fund has fulfilled the requirements of paragraph (a) or (b) in relation to the member.”.
5.1 Subregulation 4.09 (1):
Omit “that are not excluded funds”.
6.1 Subregulation 5.01 (2):
Omit “employer-financed contribution.”, substitute “employer contribution.”.
7.1 Subregulations 5.14 (1A) and (2):
Omit the subregulations and the note, substitute:
The member-protection standards do not apply to a unitised fund if:
(a) a single price is applicable both to the buying and selling of units in the fund and all the administration costs of the fund are reflected in that price; or
(b) separate prices are applicable, respectively, to the buying and selling of units in the fund and:
(i) the price differential, also known as the buy/sell cost spread, is solely attributable to outgoings comprising:
(A) brokerage costs; and
(B) fees and charges charged against a member’s benefits that are excluded from the definition of ‘administration costs’ under paragraphs (a), (b) and (c) of that definition in subregulation 5.01 (1); and
(ii) the brokerage costs referred to in sub-subparagraph (i) (A), if any, are applied proportionally in relation to all units in the fund; and
(iii) all the administration costs of the fund, except for any brokerage costs applied in accordance with sub-subparagraph (i) (A) and subparagraph (ii), are reflected in both the buy price and the sell price of the units; or
(c) the administration costs of the fund are not wholly reflected in the price, or prices, of units in the fund but the benefits of its members are protected in a way that is consistent with the member-protection standards.
“(3)The member protection standards do not apply to a fund that is not a unitised fund if all of the administration costs of the fund are applied to each member in direct proportion to:
(a) the investment return credited to, or debited against, the member; or
(b) the member’s benefits.”.
8.1 After regulation 5.15B, insert:
The member-protection standards do not apply to any part of a member’s benefits which has commenced to be taken in the form of a pension.
The member-protection standards do not apply
to a part of a member’s benefits that is wholly determined by a life insurance
policy within the meaning of the
(a) the policy includes an investment component; and
(b) the premium is not dissected (whether by reference to the investment component or otherwise); and
(c) the sum insured, together with bonuses (if any), is payable only upon:
(i) the death of the life insured; or
(ii) the occurrence of the earlier of the following events:
(A) the death of the life insured; or
(B) the attainment by the life insured of the age specified in the policy.”.
9.1 Paragraph 5.17 (9) (b):
After “protected member”, insert “and lost member”.
9.2 Subregulation 5.17 (10):
Omit the subregulation, substitute:
For the purposes of this regulation, a member’s benefits are taken to be composed wholly of mandated employer-financed benefits except for:
(a) the portion (if any) of the benefits that:
(i) arose in relation to contributions made before 1 July 1995; and
(ii) the trustee reasonably believes are not mandated employer-financed benefits; and
(b) the portion (if any) of the benefits that:
(i) arose in relation to contributions made on or after 1 July 1995; and
(ii) the trustee knows are not mandated employer-financed benefits.”.
10.1 Paragraph 11.08 (3) (a):
Omit the paragraph, substitute:
“(a) each lost member of the fund who became reportable during the half-year, unless:
(i) the member ceased to be a member of the fund; or
(ii) the member ceased to be lost; or
(iii) the member was previously reported under this paragraph and the trustee reasonably believes that the member is recorded as lost on the register of lost members; and”.
1. Notified in the
Commonwealth of Australia Gazette on 6 December 1995.2. Statutory Rules 1994 No. 57 as amended by 1994 Nos. 189 and 432; 1995 Nos. 47, 64, 142, 158, 159, 240 and 293.
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