Superannuation Industry (Supervision) Regulations 1994

PART 13 - MISCELLANEOUS  

Division 13.3A - In-house assets of superannuation funds  

REGULATION 13.22D   WHEN REGULATIONS 13.22B AND 13.22C CEASE TO APPLY TO ASSETS  

13.22D(1)    
If regulation 13.22B or 13.22C applies to an asset, that regulation ceases to apply to the asset if any of the following events happens:

(a)    

the number of members of the superannuation fund increases to more than 6;

(b)    either of the following becomes an asset of the company or unit trust:

(i) an interest in another entity;

(ii) a loan to another entity, unless the loan is a deposit with an authorised deposit-taking institution within the meaning of the Banking Act 1959 ;

(c)    the company, or a trustee of the unit trust:

(i) borrows money; or

(ii) gives, or allows to be given, a charge over, or in relation to, an asset of the company or unit trust;

(d)    the company, or a trustee of the unit trust, conducts a business;

(e)    the company, or a trustee of the unit trust, becomes a party to a lease with a related party of the superannuation fund, unless the lease relates to business real property;

(f)    the company, or a trustee of the unit trust, becomes a party to a lease arrangement with a related party of the superannuation fund, unless the lease arrangement:

(i) is legally binding; and

(ii) relates to business real property;

(g)    if the company, or a trustee of the unit trust, is a party to a lease, or legally binding lease arrangement, with a related party of the superannuation fund in relation to business real property, the property ceases to be business real property;

(h)    if the company, or a trustee of the unit trust, is a party to a lease arrangement with a related party of the superannuation fund in relation to business real property, the lease arrangement ceases to be legally binding;

(i)    the company, or a trustee of the unit trust, becomes a party to a lease, or lease arrangement, with another party in relation to an asset (unless it is business real property) that is the subject of another lease or lease arrangement between any party and a related party of the superannuation fund;

(j)    a related party of the superannuation fund becomes a party to a lease, or lease arrangement, with another party in relation to an asset (other than business real property) that is the subject of another lease or lease arrangement between any party and:

(i) the company; or

(ii) a trustee of the unit trust;

(k)    if the company, or a trustee of the unit trust, is a party to a lease, or lease arrangement, with another party in relation to business real property that is the subject of another lease or lease arrangement between any party and a related party of the superannuation fund, the property ceases to be business real property;

(l)    the company, or a trustee of the unit trust, conducts a transaction otherwise than on an arm's length basis;

(m)    the company, or a trustee of the unit trust, acquires an asset of a related party of the superannuation fund, unless the asset is business real property acquired at market value;

(n)    the company, or a trustee of the unit trust, acquires from any party an asset (unless it is business real property acquired by the company, or trustee of the unit trust, at market value) that had been an asset of a related party of the superannuation fund at any time since the later of:

(i) the end of 11 August 1999; and

(ii) the day 3 years before the day on which the asset was acquired by the company or the trustee of the unit trust.

13.22D(2)    
In paragraphs (1)(m) and (n) :

asset
does not include:

(a) money; or

(b) in relation to a company, a share in the company.

13.22D(3)    
If regulation 13.22B or 13.22C ceases to apply to an asset of a superannuation fund, neither regulation applies to any other asset of the fund that is:

(a)    acquired by the fund at any time; and

(b)    an interest in the company or unit trust.