Superannuation (PSSAP) Unit Pricing Amendment Determination 2005 (No. 2)

Overview

The Superannuation (PSSAP) Unit Pricing Amendment Determination 2005 No. 2 was enacted to amend the principal instrument, the Superannuation (PSSAP) Unit Pricing Determination 2005. This legislation was introduced to address the need for updated unit pricing within the superannuation system, ensuring that members have accurate and current information for their investment choices. Enacted by the PSS Board under the PSSAP Rules, the primary objective is to maintain transparency and fairness in the unit pricing process, thereby facilitating informed decision-making by members regarding their superannuation investments. The amendment specifically modifies the unit pricing schedules to reflect accurate buy and sell prices for each investment option, effective from specified dates, ensuring that members are appropriately compensated for their contributions and withdrawals.

Scope and Application

The Superannuation (PSSAP) Unit Pricing Amendment Determination 2005 No. (2) amends the Superannuation (PSSAP) Unit Pricing Determination 2005, which primarily concerns the pricing of units within the PSSAP (Prudential Supervision of Self-Managed Superannuation Funds) framework. The amendment applies to members of the PSSAP who are afforded investment choices in accordance with the PSSAP Rules 5.2.1, 5.4.2, and 5.4.3, with currently eleven investment options available. The Determination regulates the buy and sell prices for units, which determine the number of units allocated to members and the value of units withdrawn, respectively. The primary focus is on updating the unit prices, with Schedule 2 of the principal instrument being specifically amended to reflect new buy and sell prices for each investment option as of a specified date. This amendment applies nationally and is a part of the overarching PSSAP legislative framework, governing conduct within the superannuation industry and affecting entities and individuals involved in PSSAP-managed funds.

Key Provisions

The Superannuation (PSSAP) Unit Pricing Amendment Determination 2005 No. (2) amends the Superannuation (PSSAP) Unit Pricing Determination 2005. This amendment primarily affects the pricing schedules for units within the investment options available under the PSSAP. Section 4 of the Determination details that members have the choice to invest in one of 11 available investment options, as per PSSAP Rules 5.2.1, 5.4.2, and 5.4.3. The daily buy and sell prices for these units are stipulated in Schedules 1 and 2 of the principal instrument, with Schedule 1 covering the period from 1 July 2005 to 22 July 2005 and Schedule 2 specifying prices for 28 July 2005. This Determination specifically amends Schedule 2 to insert updated buy and sell prices for each investment option as of the specified date. The Determination imposes clear obligations on the parties involved. The PSS Board must ensure that the buy and sell prices for each investment option are accurately determined and updated as required. Members relying on these prices to make investment decisions must be provided with timely and accurate information. Trustees of the fund are also required to use these prices for calculating the number of units allocated or redeemed based on amounts paid into or withdrawn from the fund. The obligation extends to ensuring that all stakeholders are informed of any changes to these prices in a timely manner. Breaching the requirements set out in this Determination can have significant consequences. While the Determination does not explicitly detail specific offences or penalties, it is integral to the overarching legislative framework that governs the PSSAP. Any failure to comply with the unit pricing rules could potentially lead to legal action under related superannuation legislation, such as the Superannuation Industry (Supervision) Act 1993 (Cth). Non-compliance could result in civil penalties, including fines, and in more severe cases, criminal charges. The exact penalties would depend on the specific breach and would be determined in accordance with the broader superannuation regulatory framework. Trustees and administrators must therefore ensure strict adherence to the pricing rules to avoid such consequences.