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 20 December 1994.
BILL HAYDEN
Governor-General
By His Excellency’s Command,
PAUL ELLIOTT
Parliamentary Secretary to the Treasurer for the Treasurer
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1.1 The Superannuation Industry (Supervision) Regulations are amended as set out in these Regulations.
[NOTE: These Regulations commence on gazettal: see
2.1 Subregulation 1.04 (3):
Omit the subregulation.
3.1 Omit the regulation, substitute:
For the purposes of sub-subparagraph 18 (1) (a) (ii) (B) of the Act, a prescribed class consists of former standard employer-sponsored members of the fund who, since ceasing to be standard employer-sponsored members of the fund, have remained members of the fund at all times.”.
4.1 After regulation 3.04, insert:
For the purposes of subsection 60A (2) of the Act, the following kinds of removal are specified:
(a) a removal that will have the immediate effect that the fund complies with the basic equal representation rules set out in section 89 of the Act;
(b) a removal that satisfies all of the following conditions:
(i) the questions of whether the trustee should be removed, and who should replace the trustee if the removal is agreed to, have been voted on at a meeting of beneficiaries;
(ii) the beneficiaries who vote (in person or by proxy) on each question mentioned in subparagraph (i) at the meeting referred to in that subparagraph hold interests that are in total at least 25% of the total value of all beneficiaries’ interests in the fund;
(iii) at least 75% by number of the beneficiaries who vote (in person or by proxy) at the meeting on whether to remove the trustee vote in favour of removing the trustee;
(iv) at least 75% by number of the beneficiaries who vote (in person or by proxy) at the meeting on who the new trustee should be vote in favour of a particular person as trustee;
(v) that person will become the trustee immediately after the removal takes effect.”.
5.1 Paragraph 7.04 (1) (b):
Add at the end:
“; or (iii) is on authorised leave from his or her employer, and:
(A) the leave is for the purposes of raising children of whom the member is a parent, or for whom he or she has assumed the responsibility of a parent; and
(B) he or she has been on that leave for less than 7 years consecutively; and
(C) he or she has a statutory or contractual right to resume employment at the end of the leave; and
(D) either:
(I) he or she was a member of the fund immediately before going on the leave; or
(II) the fund is a fund of which the employer is a standard employer-sponsor.”.
5.2 After subregulation 7.04 (1), insert:
In subparagraph (1) (b) (iii):
(a) approved by the member’s employer; or
(b) authorised by:
(i) a law of the Commonwealth, a State or a Territory; or
(ii) an agreement certified, or an award made, by a tribunal or body having the authority to do so under a law of the Commonwealth, a State or a Territory.”.
6.1 Subregulation 7.05 (1):
After paragraph 7.05 (1) (a), insert:
“; or (ba) the member is on authorised leave from his or her employer and:
(i) the leave is for the purposes of raising children of whom he or she is a parent, or for whom he or she has assumed the responsibility of a parent; and
(ii) he or she has been on that leave for less than 7 years consecutively; and
(iii) he or she has a statutory or contractual right to resume employment at the end of the leave; and
(iv) either:
(A) he or she was a member of the fund immediately before going on the leave; or
(B) the fund is a fund of which the employer is a standard employer-sponsor; or”.
6.2 After subregulation 7.05 (1), insert:
In paragraph (1) (ba):
(a) approved by the member’s employer; or
(b) authorised by:
(i) a law of the Commonwealth, a State or a Territory; or
(ii) an agreement certified, or an award made, by a tribunal or body having the authority to do so under a law of the Commonwealth, a State or a Territory.”.
7.1 After regulation 10.04, insert:
For the purposes of paragraph 248 (b) of the Act, the minimum amount is $500.”.
8.1 Insert:
“
9.1 Omit “30 September 1994”, substitute “31 March 1995”.
10.1 Paragraph 12.11 (1) (b):
Omit “30 September 1994”, substitute “31 March 1995”.
11.1 Definition of “approved non-bank financial institution”:
Omit the definition.
12.1 Subregulation 13.17 (2):
Omit the subregulation, substitute:
Subregulation (1) does not apply to investments by a fund in a related body corporate:
(a) in the case of a life insurance policy—if the body corporate issuing the policy is a life insurance company; or
(b) in the case of a deposit—if the body corporate is an approved bank or an approved non-bank financial institution; or
(c) in any other case—if:
(i) the body corporate is an approved bank, an approved non-bank financial institution or a life insurance company; and
(ii) the trustee of the fund complies with the rules set out in regulation 13.17AA.”.
13.1 Subregulation 13.17A (2):
Omit the subregulation, substitute:
Subregulation (1) does not apply to investments by a fund in a related body corporate:
(a) in the case of a life insurance policy—if the body corporate issuing the policy is a life insurance company; or
(b) in the case of a deposit—if the body corporate is an approved bank or an approved non-bank financial institution; or
(c) in any other case—if:
(i) the related body corporate is an approved bank, an approved non-bank financial institution or a life insurance company; and
(ii) the trustee of the fund complies with the rules set out in regulation 13.17AA.”.
14.1 After regulation 13.17A, insert:
(1) In this regulation:
If at the end of a year of income (‘the current year of income’) the value of a fund’s prescribed investments exceeds 5% of the total assets of the fund, the trustee of the fund must prepare a written plan in accordance with subregulations (3) and (4) as soon as practicable after the end of the current year of income.
The plan must specify the amount (‘the excess amount’) by which, at the end of the current year of income, the fund’s prescribed investments exceed 5% of the fund’s total assets.
The plan must set out the steps that the trustee proposes to take in the year of income following the current year of income to ensure that:
(a) some of the fund’s prescribed investments are disposed of during the year of income following the current year of income; and
(b) the value of the prescribed investments disposed of is equal to or greater than the excess amount.
The trustee must carry out the plan.
If the total value of the fund’s prescribed investments is more than 5% of the total value of the fund’s assets, the trustee of the fund must not make a prescribed investment.
If the making of a prescribed investment would result in the total value of the fund’s prescribed investments exceeding 5% of the total value of the fund’s assets, the trustee of the fund must not make the prescribed investment.”.
1. Notified in the
Commonwealth of Australia Gazette on 23 December 1994.2. Statutory Rules 1994 No. 57 as amended by 1994 No. 189.
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