Corporations Regulations 2001

SCHEDULE 10A - MODIFICATIONS OF PART 7.9 OF THE ACT  

(regulations 7.9.02 , 7.9.04 , 7.9.05 , 7.9.06 , 7.9.09C , 7.9.11C , 7.9.11N , 7.9.11V , 7.9.12 , 7.9.24 , 7.9.27 , 7.9.30 , 7.9.43 , 7.9.47 , 7.9.51 , 7.9.56 , 7.9.60 , 7.9.61 , 7.9.63 , 7.9.73 and 8.4.02 )

PART 10 - MODIFICATIONS RELATING TO ONGOING DISCLOSURE OF MATERIAL CHANGES AND SIGNIFICANT EVENTS IN RELATION TO SUPERANNUATION PRODUCTS AND RSAs  

SECTION 10.1  

10.1    

After subsection 1017B(5)

insert

(5A) Provision of advice before event.  

For a superannuation product or an RSA, if a product holder would reasonably be expected to be informed of:

(a) a decision of the issuer; or

(b) the winding-up or termination of the superannuation entity;

before it occurs, the issuer must give the product holder information about the event as soon as practicable after it becomes reasonable for the issuer to expect that the event will happen (except that the information does not need to be given more than 3 months before the expected date of the event).

(5B) Changes to governing rules or terms and conditions.  

For subsections 1017B(5), (6) and (7) a reference to an event includes the following:

(a) a change to the governing rules of a superannuation entity (other than a change that gives effect to a payment split) of a kind that has an adverse effect on:

(i) the amount of the relevant financial product; or

(ii) the benefits to which the holder of the relevant financial product may become entitled; or

(iii) the circumstances in which the benefits to which the holder of the relevant financial product may become entitled would become payable;

(b) a change to the terms and conditions of an RSA (other than a change that gives effect to a payment split) of a kind that has an adverse effect on:

(i) the amount of the RSA; or

(ii) the benefits to which the RSA holder may become entitled; or

(iii) the circumstances in which the benefits to which the RSA holder may become entitled would become payable;

(c) any other change in relation to an RSA, caused by any other act carried out or consented to by the issuer, of a kind that has an adverse effect on:

(i) the amount of the RSA; or

(ii) the benefits to which the RSA holder may become entitled; or

(iii) the circumstances in which the benefits to which the RSA holder may become entitled would become payable.

(5C) Notice of non-compliance.  

If the issuer of a superannuation product receives a notice of non-compliance, the issuer must give to each product holder:

(a) a statement of the circumstances (including details of the non-compliance) that gave rise to the issue of the notice; and

(b) a statement of the effect on the fund of the issue of the notice (including details of the effect on the entity ' s taxation position); and

(c) details of action that the issuer has taken, or proposes to take, to have the entity become a complying fund or a pooled superannuation trust for the purposes of Division 2 of Part 5 of the Act.

(5D)
For subsection (5C), a notice of non-compliance means a notice issued under section 40 of the SIS Act to the trustee of a fund stating that the fund is not a complying fund or a pooled superannuation trust.

(5E) Fund and RSA transfers.  

For subsections (5), (6) and (7), a reference to an event includes:

(a) in relation to a superannuation product:

(i) the transfer of a member to a different category of membership or to a different fund; and

(ii) the transfer of the benefits of a member to an RSA or exempt public sector superannuation scheme (otherwise than under a payment split); and

(b) in relation to an RSA - the transfer of an amount of an RSA (otherwise than under a payment split) to:

(i) another RSA offered by an RSA issuer; or

(ii) a superannuation entity; or

(iii) an exempt public sector superannuation scheme.