Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Act 2012 (117 of 2012)

Schedule 1   Trustee obligations

Superannuation Industry (Supervision) Act 1993

20   Section 115

Repeal the section, substitute:

115 Trustee of superannuation entity may maintain reserves

(1) The trustee of a superannuation entity may maintain a reserve of the entity for a particular purpose, unless the governing rules of the entity prohibit the maintenance of a reserve for that purpose.

Governing rules of an RSE must not prohibit reserves to cover operational risk

(2) The governing rules of a registrable superannuation entity must not prohibit the maintenance of a reserve to cover the operational risk relating to the entity.

(3) If the governing rules of a registrable superannuation entity are inconsistent with subsection (2):

(a) subsection (2) prevails; and

(b) the governing rules are invalid, to the extent of the inconsistency.