Financial Sector Legislation Amendment (Simplifying Regulation and Review) Act 2007 (154 of 2007)

Schedule 1   Streamlining prudential regulation

Part 2   Amendments commencing 1 January 2008

Superannuation Industry (Supervision) Act 1993

240   Subsection 29JA(1)

Repeal the subsection, substitute:

(1) If an RSE licensee becomes aware that:

(a) the RSE licensee has breached or will breach a condition imposed on its RSE licence; and

(b) the breach is or will be significant (see subsection (1A));

the RSE licensee must give APRA a written report about the breach as soon as practicable, and in any case no later than 10 business days, after becoming aware of the breach.

(1A) For the purposes of subsection (1), a breach is or will be significant if the breach is or will be significant having regard to any one or more of the following factors:

(a) the number or frequency of similar previous breaches;

(b) the impact the breach has or will have on the RSE licensee’s ability to fulfil its obligations as trustee of the superannuation entity;

(c) the extent to which the breach indicates that the RSE licensee’s arrangements to ensure compliance with the RSE licensee law might be inadequate;

(d) the actual or potential financial loss arising or that will arise from the breach to the beneficiaries of the entity or to the RSE licensee;

(e) any other matters prescribed by regulations made for the purposes of this paragraph.