Superannuation Industry (Supervision) Regulations (Amendment) 1997 No. 69
EXPLANATORY STATEMENT
Statutory Rules 1997 No. 69
Issued by the authority of the Assistant Treasurer
Superannuation Industry (Supervision) Act 1993
Superannuation Industry (Supervision) Regulations (Amendment)
The Superannuation Industry (Supervision) Act 1993 (the Act) and the Superannuation Industry (Supervision) Regulations (the Principal Regulations) provide for the prudent management of certain superannuation funds, approved deposit funds and pooled superannuation trusts and for their supervision by the Insurance and Superannuation Commissioner.
Section 353 of the Act provides that the Governor-General may make Regulations for the purposes of the Act.
Subsection 23(1) of the Act provides that a constitutional corporation may apply to the Commissioner for an approval as a trustee for the purposes of the Act. In order to ensure that superannuation funds can be regulated by the Commonwealth, corporate trustees must be trading or financial corporations formed within the limits of the Commonwealth. A corporate trustee of a superannuation fund is a financial corporation by virtue of its activity as trustee of the fund.
Paragraph 23(2)(c) of the Act provides that an application must be accompanied by an application fee of the prescribed amount. Regulation 3.02 of the Principal Regulations currently prescribes an application fee of $500.
The Government has agreed to increase the application fee to $2,000. The current application fee of $500 is insufficient to cover the cost of work involved in assessing an application for an approved trustee. A fee of $2,000 more fully reflects the actual cost of assessing an application.
The regulations give effect to the Government's decision.
Regulation 1.1 provides that the Principal Regulations are amended as set out in the Regulations.
Regulation 2.1 omits the application fee for approval as a trustee for the purposes of the Act of $500 and substitutes a new fee of $2,000 in order to more fully reflect the actual cost involved in assessing an application.
The regulations commenced on gazettal.
Overview
The Superannuation Industry (Supervision) Regulations (Amendment) 1997 No. 69 was enacted to address the inadequacy of the existing application fee for trustee approval within the framework of the Superannuation Industry (Supervision) Act 1993. The primary issue that these regulations aim to resolve is the insufficient cost coverage of the current $500 application fee, which does not adequately reflect the actual expenses incurred in the assessment process for approving trustees of superannuation funds. This amendment was issued under the authority of the Assistant Treasurer and is designed to ensure that the application fee more accurately reflects the operational costs involved, thereby maintaining the integrity and efficiency of the regulatory process. The policy objective behind this adjustment is to ensure that the regulatory framework remains financially sustainable and effectively managed, facilitating the prudent oversight of superannuation funds by the Insurance and Superannuation Commissioner.
Scope and Application
The Superannuation Industry (Supervision) Regulations (Amendment) 1997 No. 69 pertains to the regulation of superannuation funds, approved deposit funds, and pooled superannuation trusts within Australia. The Act applies to corporate trustees who are constitutional corporations under Australian law, requiring them to seek approval from the Insurance and Superannuation Commissioner to manage these funds. These regulations extend to financial corporations formed within the limits of the Commonwealth, ensuring that the Commonwealth can effectively supervise and regulate these entities. The amendment to the application fee from $500 to $2,000 is aimed at better reflecting the costs associated with the assessment process for approved trustee applications. The changes are implemented via subordinate instruments, ensuring that the regulations can be updated as necessary to meet current demands and operational costs. These regulations have a national reach, applying across all states and territories of Australia, thereby maintaining a consistent framework for the prudent management and supervision of superannuation funds.
Key Provisions
The Superannuation Industry (Supervision) Regulations (Amendment) 1997 No. 69 primarily amends the Principal Regulations to increase the application fee for corporate trustees seeking approval under Section 23 of the Superannuation Industry (Supervision) Act 1993 (the Act). Regulation 2.1 specifically replaces the existing application fee of $500 with a new fee of $2,000, reflecting the actual cost of the assessment process. This change is designed to ensure that the fee adequately covers the administrative and supervisory costs incurred by the Insurance and Superannuation Commissioner in evaluating applications.
These regulations impose obligations on corporate trustees who seek approval to manage superannuation funds, approved deposit funds, and pooled superannuation trusts. Specifically, they must now provide an application fee of $2,000 as part of their application process, as detailed in Regulation 2.1. This fee is mandatory and must be paid at the time of application submission. The increased fee is intended to ensure that the Commissioner has sufficient resources to conduct thorough and effective assessments of applications.
Breach of these regulations could have significant legal consequences. While the Act itself does not explicitly outline specific penalties for non-compliance with fee requirements, failure to meet the prescribed fee could potentially result in non-approval of the application. Additionally, repeated non-compliance or attempts to circumvent the fee requirements could attract broader scrutiny and regulatory action under other sections of the Act, which may include administrative penalties or legal actions to enforce compliance. The precise consequences would depend on the specific nature of the non-compliance and the discretion of the Commissioner in enforcing the regulations.