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

Schedule 1   Trustee obligations

Superannuation Industry (Supervision) Act 1993

9   After Division 5 of Part 2C

Insert:

Division 6 - Trustee obligations relating to MySuper

29VN Additional obligations of a trustee in relation to a MySuper product

Each trustee of a regulated superannuation fund that includes a MySuper product must:

(a) promote the financial interests of the beneficiaries of the fund who hold the MySuper product, in particular returns to those beneficiaries (after the deduction of fees, costs and taxes); and

(b) determine on an annual basis whether the beneficiaries of the fund who hold the MySuper product are disadvantaged, in comparison to the beneficiaries of other funds who hold a MySuper product within those other funds, because the financial interests of the beneficiaries of the fund who hold the MySuper product are affected:

(i) because the number of beneficiaries of the fund who hold the MySuper product is insufficient; or

(ii) because the number of beneficiaries of the fund is insufficient; or

(iii) where the assets of the fund that are attributed to the MySuper product are, or are to be, pooled with other assets of the fund or assets of another entity or other entities - because that pool of assets is insufficient; or

(iv) in a case to which subparagraph (iii) does not apply - because the assets of the fund that are attributed to the MySuper product are insufficient; and

(c) include in the investment strategy for the MySuper product the details of the trustee's determination of the matters mentioned in paragraph (b); and

(d) include in the investment strategy for the MySuper product, and update each year:

(i) the investment return target over a period of 10 years for the assets of the fund that are attributed to the MySuper product; and

(ii) the level of risk appropriate to the investment of those assets.

29VO Additional obligations of a director of a corporate trustee in relation to a MySuper product

(1) Each director of a corporate trustee of a regulated superannuation fund that includes a MySuper product must exercise a reasonable degree of care and diligence for the purposes of ensuring that the corporate trustee carries out the obligations referred to in section 29VN.

(2) The reference in subsection (1) to a reasonable degree of care and diligence is a reference to the degree of care and diligence that a superannuation entity director would exercise in the corporate trustee's circumstances.

(3) A superannuation entity director is a person whose profession, business or employment is or includes acting as director of a corporate trustee of a superannuation entity and investing money on behalf of beneficiaries of the superannuation entity.

29VP Contravention of section 29VN or 29VO

(1) A person must not contravene section 29VN or 29VO.

(2) A contravention of subsection (1) is not an offence and a contravention of that subsection does not result in the invalidity of a transaction.

(3) A person who suffers loss or damage as a result of the conduct of another person that was engaged in incontravention of subsection (1) may recover the amount of the loss or damage by action against that other person or against any person involved in the contravention.

(4) An action under subsection (3) may be begun at any time within 6 years after the day on which the cause of action arose.

29VQ Governing rules void to the extent that they are inconsistent with obligations under section 29VN or 29VO

A provision of the governing rules of a regulated superannuation fund is void to the extent that it is inconsistent with:

(a) the obligations that apply to a trustee of the fund under section 29VN; or

(b) if the trustee of the fund is a body corporate - the obligations that apply to the directors of the body corporate under section 29VO.