ASIC Corporations (Superannuation and Schemes: Underlying Investments) Instrument 2016/378

Overview

The ASIC Corporations (Superannuation and Schemes: Underlying Investments) Instrument 2016/378 was enacted to provide regulatory relief to trustees of registrable superannuation entities and registered schemes, addressing the administrative burden associated with providing Financial Services Guides to members for certain financial product dealings in the ordinary course of operation. This legislative instrument is made under the authority of subsections 926A(2) and 951B(1) of the Corporations Act 2001, and it aims to streamline operations for these entities by exempting them from certain compliance requirements temporarily. The policy objective is to facilitate the efficient management of superannuation and registered schemes while ensuring that the relief provided does not compromise the protection of members' interests. This instrument is instrumental in achieving a balance between regulatory compliance and operational efficiency for trustees.

Scope and Application

The ASIC Corporations (Superannuation and Schemes: Underlying Investments) Instrument 2016/378 applies to trustees of registrable superannuation entities and responsible entities of registered schemes as defined under the Corporations Act 2001 and the Superannuation Industry (Supervision) Act 1993. This legislative instrument exempts these trustees and entities from certain compliance requirements concerning the dealing in financial products in the ordinary course of their operations. Specifically, trustees of registrable superannuation entities are exempt from licensing requirements under subsection 911A(1) of the Act for dealing in financial products, and both trustees of superannuation entities and responsible entities of registered schemes are exempt from the obligation to provide Financial Services Guides to members for such dealings. This exemption is in place until 31 December 2022. The instrument extends its reach through subordinate instruments, as evidenced by the amendment history and the instrument history notes included in the endnotes of the compilation.

Key Provisions

The ASIC Corporations (Superannuation and Schemes: Underlying Investments) Instrument 2016/378 provides certain exemptions and requirements related to superannuation entities and registered schemes. Specifically, Section 5(1) exempts a trustee of a registrable superannuation entity from complying with the requirement under Section 911A(1) of the Corporations Act 2001 to hold an Australian financial services licence when dealing in financial products in the ordinary course of operation of the entity. This exemption is temporary and applies until 31 December 2022. Section 6(1) exempts trustees of superannuation entities from the requirement to provide a Financial Services Guide to members when dealing in financial products in the ordinary course of operation of the entity. Similarly, Section 6(2) exempts responsible entities of registered schemes from the requirement to provide a Financial Services Guide to members when dealing in financial products in the ordinary course of operation of the scheme. The obligations and requirements imposed by the Act include the need for trustees of registrable superannuation entities to ensure that they comply with the Act’s licensing requirements by 31 December 2022. Trustees and responsible entities must also ensure that they do not provide a Financial Services Guide to members when dealing in financial products in the ordinary course of operation of the entity or scheme. There are no specific offences, penalties, or consequences for breach of the Act. However, the Act is made under the authority of subsections 926A(2) and 951B(1) of the Corporations Act 2001, which means that any breach of the Act may result in penalties under the Corporations Act. The penalties for breach of the Corporations Act can include fines, imprisonment, or both, depending on the nature and severity of the breach.