Superannuation Legislation Amendment (Service Providers and Other Governance Measures) Act 2013 (61 of 2013)

Schedule 1   Amendments

Part 1   Amendments

Superannuation Industry (Supervision) Act 1993

72   After section 58

Insert:

58A Service providers and investments cannot be limited to particular persons or associates

Does not apply to self managed superannuation funds

(1) This section does not apply to a regulated superannuation fund that is a self managed superannuation fund.

Service providers

(2) A provision in the governing rules of a regulated superannuation fund is void to the extent that it specifies a person or persons (whether by name or in any other way, directly or indirectly) from whom the trustee, or one or more of the trustees, of the fund may or must acquire a service.

Investments in entities

(3) A provision in the governing rules of a regulated superannuation fund is void to the extent that it specifies an entity or entities (whether by name or in any other way, directly or indirectly) in or through which one or more of the assets of the fund may or must be invested.

Financial products

(4) A provision in the governing rules of a regulated superannuation fund is void to the extent that it specifies (whether by name or by reference to an entity) a financial product or financial products:

(a) in or through which one or more of the assets of the fund may or must be invested; or

(b) that may or must be purchased using assets of the fund; or

(c) in relation to which one or more assets of the fund may or must be used to make payments.

Exception

(5) Subsections (2), (3) and (4) do not apply if the relevant person, entity or financial product is specified in a law of the Commonwealth or of a State or Territory, or is required to be specified under such a law.

58B Service providers and investments

(1) This section applies if a trustee, or the trustees, of a regulated superannuation fund does one or more of the following:

(a) acquires a service from an entity;

(b) invests assets of the fund in or through an entity;

(c) invests assets of the fund in or through a financial product;

(d) purchases a financial product using assets of the fund;

(e) uses assets of the fund to make payments in relation to a financial product.

(2) If the trustee, or the trustees, would not breach:

(a) a provision of any of the following:

(i) this or any other Act;

(ii) a legislative instrument made under this or any other Act;

(iii) the prudential standards;

(iv) the operating standards;

(v) the governing rules of the fund; or

(b) any covenant referred to in this Part or prescribed under this Part;

in doing one or more of the things mentioned in subsection (1), the general law relating to conflict of interest does not apply to the extent that it would prohibit the trustee, or the trustees, from doing the thing.