Superannuation Safety Amendment Act 2004
No. 53, 2004
An Act to amend the law relating to superannuation, and for related purposes
Contents
1 Short title
2 Commencement
3 Schedule(s)
Schedule 1—Licensing, registration and amalgamation
Part 1—Amendments commencing first
Superannuation Industry (Supervision) Act 1993
Part 2—Amendments commencing second
Superannuation Industry (Supervision) Act 1993
Schedule 2—Clarification of the application of the law to groups of trustees
Superannuation Industry (Supervision) Act 1993
Schedule 3—Actuaries, auditors and defined benefit funds
Part 1—Actuaries and auditors
Retirement Savings Accounts Act 1997
Superannuation Industry (Supervision) Act 1993
Part 2—Defined benefit funds
Superannuation Industry (Supervision) Act 1993
Superannuation Safety Amendment Act 2004
No. 53, 2004
An Act to amend the law relating to superannuation, and for related purposes
[Assented to 27 April 2004]
The Parliament of Australia enacts:
1 Short title
This Act may be cited as the Superannuation Safety Amendment Act 2004.
2 Commencement
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information |
Column 1 | Column 2 | Column 3 |
Provision(s) | Commencement | Date/Details |
1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table | The day on which this Act receives the Royal Assent. | 27 April 2004 |
2. Schedule 1, Part 1 | A single day to be fixed by Proclamation. However, if the provision(s) do not commence within the period of 6 months beginning on the day on which this Act receives the Royal Assent, they commence on the first day after the end of that period. | 1 July 2004 (Gazette 2004, No. GN22) |
3. Schedule 1, Part 2 | On the day after the end of the period of 2 years beginning on the day on which the provision(s) covered by table item 2 commence. | 1 July 2006 |
4. Schedule 2 | At the same time as the provision(s) covered by table item 2. | 1 July 2004 |
5. Schedule 3 | At the same time as the provision(s) covered by table item 2. | 1 July 2004 |
Note: This table relates only to the provisions of this Act as originally passed by the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.
(2) Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.
3 Schedule(s)
Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Schedule 1—Licensing, registration and amalgamation
Part 1—Amendments commencing first
Superannuation Industry (Supervision) Act 1993
1 Section 4 (after table item 2)
Insert:
2A | licensing of trustees and groups of individual… |
Overview
The Superannuation Safety Amendment Act 2004 was enacted by the Parliament of Australia to amend the law relating to superannuation, specifically targeting issues around the safety, management, and regulation of superannuation funds. The Act introduces a licensing regime for trustees and groups of individual trustees, requiring them to obtain a Regulatory superannuation entity (RSE) licence to manage certain superannuation funds. This amendment was introduced to enhance the oversight and regulation of superannuation entities to better protect the interests of superannuation members and beneficiaries. The Act also clarifies the application of the law to groups of trustees and updates provisions relating to actuaries, auditors, and defined benefit funds. By implementing this Act, the Australian government aimed to ensure greater accountability and transparency in the superannuation industry, thus safeguarding the financial future of superannuation members.
Scope and Application
The Superannuation Safety Amendment Act 2004 amends the law relating to superannuation in Australia. This Act applies to constitutional corporations, other bodies corporate, and groups of individual trustees that hold or wish to hold a Registrable Superannuation Entity (RSE) licence from the Australian Prudential Regulation Authority (APRA). The Act specifically addresses the licensing of trustees and groups of trustees, registration of superannuation entities, and amalgamation of funds. It operates on a Commonwealth level, impacting entities and individuals managing superannuation funds across Australia. The amendments introduced by this Act, particularly in relation to the licensing of trustees and entities, the registration of superannuation funds, and the conditions attached to these licences and registrations, are designed to ensure the safety and proper management of superannuation funds. The Act also includes provisions for APRA to impose additional conditions on RSE licences, vary or revoke existing conditions, and cancel licences under certain circumstances. While the Act primarily targets trustees and entities managing superannuation funds, it also extends its reach to include actuaries and auditors in defined benefit funds, requiring them to report certain contraventions to both the RSA provider and APRA. Notably, the Act does not apply to self-managed superannuation funds and excludes them from the licensing and registration requirements. Certain sections of the Act are subject to subordinate instruments for further clarification and application, particularly regarding the definition of terms and transitional provisions.
Key Provisions
- The Superannuation Safety Amendment Act 2004 introduces several significant amendments to existing superannuation laws, primarily targeting the licensing of trustees and groups of individual trustees, and the registration of registrable superannuation entities (RSE). Under this Act, certain amendments commence on 1 July 2004, while others take effect on 1 July 2006. The Act introduces new provisions relating to the licensing of trustees and groups of individual trustees, and the registration of entities such as regulated superannuation funds, approved deposit funds, and pooled superannuation trusts.
- The Act requires trustees and groups of individual trustees to obtain a Registerable Superannuation Entity (RSE) licence to act as trustees of RSEs. This licence is essential for entities such as regulated superannuation funds, approved deposit funds, and pooled superannuation trusts. To obtain an RSE licence, trustees must submit an application to the Australian Prudential Regulation Authority (APRA) that includes a risk management strategy, among other required information. Trustees are mandated to comply with various conditions, such as ensuring that each RSE they are trustees of is registered, complying with their risk management plans, and notifying APRA of any changes in their composition within 14 days. APRA retains the authority to impose additional conditions on RSE licences and can direct trustees to comply with these conditions. Failure to comply with these requirements can result in severe consequences, including the cancellation of the RSE licence.
- Obligations imposed on trustees and groups of trustees include the requirement to maintain and review their risk management strategies annually, notify APRA of any changes in their composition, and comply with directions issued by APRA. Trustees must also ensure that their governing bodies meet the standards prescribed for fitness and propriety, and that they have adequate resources to manage the funds effectively. Furthermore, trustees must notify APRA of any breaches of RSE licence conditions and comply with any directions to modify their risk management strategies. Trustees are also required to provide APRA with necessary information when requested.
- The Act imposes several offences and penalties for breaches of its provisions. For instance, an individual who acts as a trustee of an RSE while unlicensed, or fails to notify APRA of a breach of an RSE licence condition, commits an offence. The penalty for such an offence is imprisonment for up to 2 years or a fine of up to 120 penalty units, or both. Similarly, failure to comply with a direction to comply with an RSE licence condition or a direction to modify a risk management strategy is an offence, carrying a penalty of up to 60 penalty units. Strict liability applies to certain offences, meaning that the person committing the offence does not need to have had intent or knowledge of the breach. Other penalties include fines of up to 50 penalty units for various breaches, such as failing to comply with a notice to modify a risk management strategy or failing to notify APRA of changes to a risk management plan. Additionally, the Act includes provisions to protect individuals from self-incrimination when providing information to APRA.
- In summary, the Superannuation Safety Amendment Act 2004 significantly alters the regulatory landscape for trustees and groups of trustees by introducing a licensing regime and stringent conditions for RSE licences. It mandates the registration of RSEs, sets out the obligations of trustees and RSE licensees, and provides for various offences and penalties for non-compliance. The Act ensures that trustees and RSE licensees are held accountable for their actions and maintains the integrity of the superannuation system.
- Area of Law
- Corporate Law & Governance
- Superannuation Law
- Instrument
- Act
- Concepts
- Definitions & Interpretation
- Commencement Provisions
- Licensing & Registration
- Regulatory Standards
- Reporting & Disclosure Obligations
- Enforcement Powers
- Offence Provisions
