SUPERANNUATION INDUSTRY (SUPERVISION) ACT 1993 No. 78, 1993

SUPERANNUATION INDUSTRY (SUPERVISION) ACT 1993 No. 78, 1993

SUPERANNUATION INDUSTRY (SUPERVISION) ACT 1993 No. 78, 1993 - TABLE OF PROVISIONS

TABLE OF PROVISIONS PART 1-PRELIMINARY Section Division 1-Preliminary 1. Short title 2. Commencement 3. Object of Act 4. Summary of provisions 5. Outline of key concepts 6. General administration of Act 7. Application of Act not to be excluded or modified 8. Act extends to external Territories 9. Crown to be bound Division 2-Interpretation 10. Definitions 11. Approvals, determinations etc. by Commissioner 12. Associates 13. Single trustees and groups of trustees 14. Indefinitely continuing fund-application of rules against perpetuities 15. Payments for purchase of annuities 16. Definitions associated with employer-sponsorship 17. Persons involved in contravention 18. Public offer superannuation fund 19. Regulated superannuation fund 20. Related bodies corporate PART 2-APPROVAL OF TRUSTEES 21. Object of Part 22. Interpretation 23. Application for approval 24. Further information may be requested 25. Period within which application for approval is to be decided 26. Deciding an application for approval 27. When an approval is in force 28. Revocation of approval 29. Notification of change in circumstances or breach of conditions PART 3-OPERATING STANDARDS FOR SUPERANNUATION ENTITIES 30. Object of Part 31. Operating standards for regulated superannuation funds 32. Operating standards for approved deposit funds 33. Operating standards for pooled superannuation trusts 34. Prescribed operating standards must be complied with PART 4-TRUSTEE OF SUPERANNUATION ENTITY TO LODGE ANNUAL RETURNS WITH THE COMMISSIONER 35. Object of Part 36. Trustee to lodge annual returns PART 5-NOTICES ABOUT COMPLYING FUND STATUS Division 1-Objects and interpretation 37. Objects of Part 38. Meaning of "entity" Division 2-Commissioner may give notices about complying fund status 39. Meaning of "contravention" 40. Notices by Commissioner to trustee 41. When Commissioner obliged to give notice of compliance 42. Complying superannuation fund 43. Complying approved deposit fund 44. Pooled superannuation trust Division 3-Complying fund status for tax purposes 45. Complying superannuation fund 46. Complying superannuation scheme-superannuation guarantee charge 47. Complying approved deposit fund 48. Pooled superannuation trust 49. Transitional-notices under the repealed provisions of the Occupational Superannuation Standards Act 1987 50. Transitional-late lodgment of elections by trustees of superannuation funds PART 6-PROVISIONS RELATING TO GOVERNING RULES OF SUPERANNUATION ENTITIES 51. Object of Part 52. Covenants to be included in governing rules 53. Covenants to repay amounts to beneficiaries in approved deposit funds 54. Prerequisites to variation of repayment period 55. Consequences of contravention of covenant 56. Indemnification of trustee from assets of entity
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57. Indemnification of directors of trustee from assets of entity 58. Trustee not to be subject to direction 59. Exercise of discretion by person other than trustee 60. Amendment of governing rules PART 7-PROVISIONS APPLYING ONLY TO REGULATED SUPERANNUATION FUNDS 61. Object of Part 62. Sole purpose test 63. Commissioner may direct trustees of certain regulated superannuation funds not to accept employer contributions 64. Superannuation contributions-deductions from salary or wages to be remitted promptly 65. Lending to members of regulated superannuation fund prohibited 66. Acquisitions of certain assets from members of regulated superannuation funds prohibited 67. Borrowing 68. Victimisation of trustees etc. PART 8-IN-HOUSE ASSET RULES APPLYING TO REGULATED SUPERANNUATION FUNDS Division 1-Object and interpretation 69. Object of Part 70. Associate of employer-sponsor 71. Meaning of "in-house asset" 72. How this Part applies if there are 2 or more unrelated employer-sponsors 73. Cost of in-house asset 74. Historical cost ratio of fund's in-house assets 75. Market value ratio of fund's in-house assets Division 2-Historical cost ratio of fund's in-house assets 76. Private sector funds established on or after 12 March 1985-historical cost ratio for the 1994-95 year of income 77. Private sector funds established before 12 March 1985-historical cost ratio for the 1994-95 year of income 78. Public sector funds established on or after 1 July 1990-historical cost ratio for the 1994-95 year of income 79. Public sector funds established before 1 July 1990-historical cost ratio for the 1994-95 year of income 80. All funds-historical cost ratio for the 1995-96 year of income, the 1996-97 year of income and the 1997-98 year of income Division 3-Market value ratio of fund's in-house assets 81. All funds-market value ratio for the 1998-99 year of income and the 1999-2000 year of income 82. All funds-market value ratio for the 2000-2001 year of income and later years of income 83. Certain new in-house asset investments prohibited Division 4-Enforcement 84. In-house asset rules must be complied with Division 5-Anti-avoidance 85. Prohibition of avoidance schemes PART 9-EQUAL REPRESENTATION OF EMPLOYERS AND MEMBERS-EMPLOYER-SPONSORED FUNDS 86. Object of Part 87. Consequences of non-compliance with this Part 88. This Part does not apply if acting trustee appointed under Part 17 89. Basic equal representation rules 90. Pre-1 July 1995 rules-funds with fewer than 200 members 91. Pre-1 July 1995 rules-funds with 200 or more members 92. Post-30 June 1995 rules-funds with more than 4, but fewer than 50, members 93. Post-30 June 1995 rules-funds with more than 49 members PART 10-PROVISIONS APPLYING ONLY TO APPROVED DEPOSIT FUNDS 94. Object of Part 95. Borrowing PART 11-PROVISIONS APPLYING ONLY TO POOLED SUPERANNUATION TRUSTS 96. Object of Part 97. Borrowing 98. Lending to unit-holders prohibited 99. Civil penalty provisions PART 12-DUTIES OF TRUSTEES AND INVESTMENT MANAGERS OF SUPERANNUATION ENTITIES
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100. Object of Part 101. Duty to establish arrangements for dealing with inquiries or complaints 102. Duty to seek information from investment manager 103. Duty to keep minutes and records 104. Duty to keep records of changes of trustees 105. Duty to keep reports 106. Duty to notify Commissioner of significant adverse events 107. Duty of trustee of employer-sponsored fund to establish procedure for appointing member representatives 108. Duty of trustee of employer-sponsored fund to establish procedure for appointing independent trustee or independent member of board of directors of corporate trustee 109. Investments of superannuation entity to be made on an arm's length basis PART 13-ACCOUNTS OF SUPERANNUATION ENTITIES 110. Object of Part 111. Accounting records 112. Accounts 113. Audit of accounts PART 14-OTHER PROVISIONS APPLYING TO SUPERANNUATION ENTITIES 114. Object of Part 115. Trustee of superannuation entity may maintain reserves 116. Agreement between trustee and investment manager 117. Circumstances in which amounts may be paid out of an employer-sponsored fund to an employer-sponsor 118. Consents to appointments PART 15-STANDARDS FOR TRUSTEES, CUSTODIANS AND INVESTMENT MANAGERS OF SUPERANNUATION ENTITIES 119. Object of Part 120. Disqualified persons 121. Disqualified persons not to be trustees of superannuation entities 122. Investment manager must not appoint or engage custodian without the trustee's consent 123. Persons who may be appointed to be custodians of superannuation entities 124. Investment managers must be appointed in writing 125. Individuals not to be investment managers of superannuation entities 126. Disqualified persons not to be investment managers of superannuation entities 127. Non-compliance not to invalidate appointment or transaction PART 16-ACTUARIES AND AUDITORS OF SUPERANNUATION ENTITIES 128. Object of Part 129. Obligations of actuaries and auditors-compliance 130. Obligations of actuaries and auditors-solvency 131. Auditors-disqualification orders PART 17-SUSPENSION OR REMOVAL OF TRUSTEE OF SUPERANNUATION ENTITY 132. Object of Part 133. Suspension or removal of trustee of superannuation entity 134. Commissioner to appoint acting trustee in cases of suspension or removal 135. Terms and conditions of appointment of acting trustee 136. Termination of appointment of acting trustee 137. Resignation of acting trustee 138. Property vesting orders 139. Powers of acting trustee 140. Acting trustee to notify appointment to beneficiaries 141. Commissioner may give directions to acting trustee 142. Commissioner may formulate a scheme for the winding-up or dissolution, or both, of a superannuation entity PART 18-PROHIBITED CONDUCT IN RELATION TO SUPERANNUATION INTERESTS 143. Object of Part 144. Regulated acts 145. Fraudulently inducing a person to engage in a regulated act-criminal liability 146. Misleading conduct in connection with a regulated act-civil liability 147. Misleading conduct by trustees of entities-civil liability 148. Civil liability where section 146 or 147 contravened 149. Contravention of Part does not affect validity of issue of superannuation interest etc.
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PART 19-PUBLIC OFFER ENTITIES-PROVISIONS RELATING TO SUPERANNUATION INTERESTS AND DISCLOSURE OF INFORMATION Division 1-Preliminary 150. Object of Part 151. Contravention of Part does not affect validity of issue of superannuation interest etc. Division 2-Issuing, offering etc. superannuation interests in public offer entities 152. Limitation on issuing, offering etc. superannuation interests in public offer entities 153. Trustee must not issue interests, or permit persons to become standard employer-sponsors, except pursuant to applications 154. Commission and brokerage 155. Fair dealing on issue or redemption of a superannuation interest 156. Civil liability where subsection 155(2) contravened Division 3-Provisions relating to information given to prospective beneficiaries etc. of public offer entities Subdivision A-Certain information to be given to prospective beneficiaries etc. 157. Information to be given before superannuation interests issued otherwise than to standard employer-sponsored member 158. Information to be given before persons become standard employer-sponsors 159. Regulations and determinations requiring the giving of information 160. Documents taken to contain information referred to Subdivision B-Limitations on issuing regulated documents 161. Regulated documents not to be false or misleading-criminal liability 162. Regulated documents not to be false or misleading-civil liability 163. Statements by experts Division 4-Stop orders 164. Order to stop contracts etc. for issue of superannuation interests in public offer entities 165. When a stop order is in force 166. Revocation of stop order 167. Effect of stop order Division 5-Application money to be held on trust 168. Situation to which Division applies-application money received but superannuation interest not issued immediately 169. Trustee to comply with requirements of the regulations in relation to the money Division 6-Cooling-off-redemption of interests 170. Situation to which Division applies-superannuation interest issued in certain circumstances 171. Governing rules taken to confer right to have interest redeemed 172. Consequences of contravening provisions taken to be included in governing rules PART 20-PUBLIC OFFER ENTITIES-INSIDER TRADING Division 1-Preliminary 173. Object of Part 174. Superannuation interest means interest in public offer entity Division 2-Interpretation 175. Definitions 176. When information is generally available 177. When information has a material effect on price or value of superannuation interests 178. Information in possession of officer of body corporate Division 3-Insider trading rules 179. When a person contravenes the insider trading rules in relation to superannuation interests 180. Exception to insider trading rules-Chinese wall arrangements by bodies corporate 181. Exception to insider trading rules-knowledge of person's own intentions or activities 182. Exceptions to insider trading rules-special rules relating to bodies corporate 183. Exception to insider trading rules-officers or agents of bodies corporate Division 4-Offence of contravening the insider trading rules 184. Offence of contravening the insider trading rules Division 5-Civil liability for contravention of the insider trading rules-recovery of loss or damage
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185. Civil liability where plaintiff suffers loss or damage because of a contravention of the insider trading rules Division 6-Civil liability for contravention of the insider trading rules-recovery of price differential 186. Civil liability-trustee may recover price differential 187. Commissioner may bring an action in the name of a trustee 188. Special defence where information made known in a certain manner 189. Amounts recovered to be held on trust for certain interest-holders 190. Offset of amounts recovered in other proceedings Division 7-Special powers of Court to make orders in cases of contravention of the insider trading rules 191. Special powers of Court PART 21-CIVIL AND CRIMINAL CONSEQUENCES OF CONTRAVENING CIVIL PENALTY PROVISIONS Division 1-Preliminary 192. Object of Part 193. Civil penalty provisions 194. Person involved in contravening a provision taken to have contravened the provision 195. When a court is taken to find a person guilty of an offence Division 2-Civil penalty orders 196. Court may make civil penalty orders 197. Who may apply for civil penalty order 198. Time limit for application 199. Application for civil penalty order is a civil proceeding 200. Enforcement of order to pay monetary penalty 201. Commissioner may require a person to give assistance in connection with application for civil penalty order Division 3-Criminal proceedings 202. When contravention of civil penalty provisions is an offence 203. Application for civil penalty order precludes later criminal proceedings Division 4-Effect of criminal proceedings on application for civil penalty order 204. When Division applies 205. Effect during criminal proceedings 206. Final outcome precluding applications for civil penalty order 207. Final outcome not precluding application for civil penalty order 208. After unsuccessful committal proceeding, court may preclude application for civil penalty order 209. Application for civil penalty order based on alternative verdict at jury trial 210. Application for civil penalty order based on alternative finding by court of summary jurisdiction 211. Application for civil penalty order based on alternative finding by appeal court 212. After setting aside declaration, court may preclude application for civil penalty order 213. On unsuccessful appeal against declaration, Court may make civil penalty orders 214. Appeals under this Division Division 5-Compensation for loss suffered by superannuation entity 215. On application for civil penalty order, Court may order compensation 216. Criminal court may order compensation 217. Enforcement of order under section 215 or 216 218. Recovery of profits, and compensation for loss, resulting from contravention 219. Effect of sections 215, 216 and 218 220. Certificates evidencing contravention Division 6-Miscellaneous 221. Relief from liability for contravention of civil penalty provision 222. Part does not limit power to award punitive damages PART 22-UNCLAIMED MONEY 223. Object of Part 224. Definition of "fund" 225. Trustee to pay unclaimed money to the Commissioner 226. Register of unclaimed money PART 23-FINANCIAL ASSISTANCE TO CERTAIN FUNDS Division 1-Preliminary

227. Object of Part 228. Interpretation