Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)Chapter 5 - Cancelling registrable superannuation entity licences
Outline of chapter
5.1 Schedule 1 to this bill makes a technical amendment to section 29G of the Superannuation Industry (Supervision) Act 1993 concerning cancelling registrable superannuation entity (RSE) licences.
Context of amendments
5.2 Provisions concerning the licensing of trustees and groups of individual trustees, including section 29G, were inserted into the Superannuation Industry (Supervision) Act 1993 by the Superannuation Safety Amendment Act 2004.
Detailed explanation of new law
5.3 Item 60 makes a technical amendment to subsection 29G(1) of the Superannuation Industry (Supervision) Act 1993 to clarify that the Australian Prudential Regulation Authority's (APRA's) power to cancel in writing an RSE licence is subject to subsection 29G(3) of that Act. That is, APRA may not cancel an RSE licence without the Minister's written consent unless:
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- the RSE licensee has requested that their licence be cancelled (see paragraph 29G(2)(a)); or
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- the RSE licensee is a body corporate that has been disqualified under Part 15 of the Superannuation Industry (Supervision) Act 1993 (see paragraph 29G(2)(b)).
5.4 Provisions concerning the licensing of trustees and groups of individual trustees, including section 29G, were inserted into the Superannuation Industry (Supervision) Act 1993 by the Superannuation Safety Amendment Act 2004. The explanatory memorandum to the Superannuation Safety Amendment Act 2004 contains additional information on these provisions.
Application provisions
5.5 This amendment applies immediately after the commencement of Schedule 1, Part 1 of the Superannuation Safety Amendment Act 2004.