OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS 1987 (REPEALED)

PART II - SUPERANNUATION FUNDS  

Division 2 - Information on fund management  

Subdivision B - Information about individuals  

REGULATION 18E   TRUSTEES OF CERTAIN FUNDS TO DISCLOSE INFORMATION IN CERTAIN CIRCUMSTANCES  

18E(1)   [ Definitions ]  

In this regulation:

controlling interest
, in relation to a company, means:

(a) an interest in the company that enables the person holding the interest to:

(i) control the composition of the board of directors of the company; or

(ii) cast, or control the casting of, more than half of the maximum number of votes that could be cast at a general meeting of the company; or

(iii) control more than half of the issued share capital of the company (excluding any part of that issued share capital that carries no right to participate beyond a specified amount in a distribution of either profits or capital); or

(b) an interest in another company that constitutes, under paragraph (a), a controlling interest in that other company, being:

(i) a company that, under paragraph (a), has a controlling interest in the first-mentioned company; or

(ii) a company that has a controlling interest of that kind by another application, or other applications, of this paragraph;

prospective member
, in relation to a year of income of a superannuation fund, means a person who:

(a) is not a member of that fund; and

(b) the trustees of the fund believe may become a member of the fund in that year;

relative
, in relation to an employer of a member, means:

(a) the parent, grandparent, brother, sister, uncle, aunt, cousin, nephew, niece, direct descendant or adopted child of the employer or of his or her spouse; and

(b) the spouse of the employer or of any other person specified in paragraph (a).

18E(2)   [ Advice re rules alteration, fund benefit ]  

The trustees of a superannuation fund must:

(a) if the governing rules of the fund are altered - as soon as practicable after that alteration, give to a member of the fund whose entitlements or rights are affected by the alteration written advice that explains the nature and purpose of the alteration and the effect of the alteration on those entitlements or rights; and

(b) in the case of a fund, other than an employer-sponsored fund - advise a prospective member in writing about:

(i) any benefits to which the prospective member would be entitled on joining the fund and the method of determining that entitlement; and

(ii) any conditions relating to those benefits; and

(c) in the case of an employer-sponsored fund - before, or as soon as practicable after, a person joins the fund advise the person in writing in accordance with subparagraphs (b)(i) and (ii).

18E(3)   [ Statements by multi-member fund trustees ]  

The trustees of a multi-member fund must:

(a) give to a person:

(i) to whom pension benefits are paid from the fund; or

(ii) who has deferred his or her entitlement to a benefit from the fund;

at least once in each year of income of the fund, a statement that a copy of the latest report under subregulation 18H(2) and of any related notice under subregulation 18J(3) in respect of a year of income of the fund will be sent by the trustees to the person on request; and

(b) obtain from a prospective member to whom, on or after 1 January 1993, advice is given under paragraph (2)(b) a written declaration that he or she has been given the advice; and

(c) give:

(i) in the case of a fund other than an employer-sponsored fund - to a prospective member a copy of the latest report referred to in subregulation 18H(2) and of any related notice under subregulation 18J(3) in respect of a year of income of the fund; and

(ii) in the case of an employer-sponsored fund - to a person before, or as soon as practicable after, he or she joins the fund, a copy of a report or notice referred to in subparagraph (i); and

(d) give to a prospective member of a fund:

(i) that is not a defined benefit superannuation fund; or

(ii) that is a defined benefit superannuation in which accumulation accounts in the names of members are kept;

not being an employer-sponsored fund, a written statement in respect of each of the 3 preceding years of income of the fund:

(iii) of the rate of any allotment of the net earnings of the fund to the accounts of members in the class of members to which, for the purposes of the governing rules of the fund, the prospective member would belong on joining the fund; or

(iv) if the net earnings of the fund were not allotted to the accounts of members by reference to those years of income - of the notional rate of allotment of the net earnings of the fund in those years of income to the accounts of members in that class; and

(e) give to a person before, or as soon as practicable after, he or she joins an employer-sponsored fund:

(i) that is not a defined benefit superannuation fund; or

(ii) that is a defined benefit superannuation fund in which accumulation accounts in the names of members are kept;

a written statement, in respect of each of the 3 preceding years of income of the fund, that is referred to in subparagraph (d)(iii) or (iv); and

(f) in the case of a fund, other than an employer-sponsored fund, in relation to which the only offer or invitation for the purposes of subsection 1018(1) of the Corporations Law is an excluded offer or excluded invitation within the meaning of that Law - give to a prospective member to whom advice is given under paragraph (2)(b) the following information:

(i) the name and address of any person or body having authority to manage, or to participate in the management of, the fund;

(ii) if a person or body who is not a trustee of the fund has been appointed to manage, or participate in the management of, the fund:

(A) the name of and business address of that person or body; and

(B) the nature of the relationship between the person or body and any trustee of the fund and any other person or body who has been so appointed;

(iii) a summary of the principal features of the operation of the fund;

(iv) the manner in which an amount credited to the account of the person as a member of the fund would be calculated on his or her withdrawal from the fund.

18E(4)   [ Information provided by person other than trustee ]  

A standard specified in subregulation (2) or (3) is taken to have been met if the trustees are satisfied that:

(a) a person to whom the trustees are required by the standard to give information has been given the information by another person; and

(b) the other person has made a written declaration to that effect to the trustees.

18E(5)   [ Notice re payment to employer, alteration of rules ]  

The trustees of a multi-member fund to which the employer of a member of the fund contributes in respect of that member must give the member written notice of:

(a) any proposed payment from the fund to that employer not less than 3 months before the day when the payment is to be made, not being a payment reimbursing the employer for expenses incurred on behalf of the fund; and

(b) any proposal to alter the governing rules of the fund to increase the benefit payable to a member of the fund, if payment of that benefit would have the effect of making a payment from the fund:

(i) to the employer; or

(ii) to a member who is an associate of the employer;

not less than 3 months before the day when the alteration would take effect.

18E(6)   [ Member is associate of employer ]  

For the purposes of subparagraph (5)(b)(ii), a member is an associate of an employer if:

(a) the member is a relative of the employer; or

(b) the employer is or will be a company when the governing rules are altered and the member, or a relative of the member, holds or will hold a controlling interest in relation to the company when those rules are altered.