Superannuation Industry (Supervision) Act 1993

PART 19 - PUBLIC OFFER ENTITIES: PROVISIONS RELATING TO SUPERANNUATION INTERESTS  

Division 2 - Issuing, offering etc. superannuation interests in public offer entities  

SECTION 155   FAIR DEALING ON ISSUE OR REDEMPTION OF A SUPERANNUATION INTEREST  

155(1)   [Application of section]  

This section applies if:

(a) the trustee of a public offer entity is considering:

(i) issuing a superannuation interest in the entity to a person; or

(ii) redeeming a superannuation interest in the entity held by a person; and

(b) either:

(i) the trustee believes on reasonable grounds that the price at which, under the governing rules of the entity, the interest would be issued or redeemed would not, in the circumstances, be fair and reasonable as between the person and the beneficiaries of the entity; or

(ii) the trustee cannot, for whatever reason, work out the price at which, under the governing rules of the entity, the interest should be issued or redeemed.

155(2)   [Fair and reasonable price for interest]  

The trustee must not issue or redeem the interest while subsection (1) applies except at a price that is fair and reasonable as between the person and the beneficiaries of the entity.

155(3)   [Trustee acting in accordance with rules]  

If, while this section applies, the trustee issues or redeems the interest at such a price, the trustee is taken to have acted in accordance with the governing rules of the entity.

155(4)   [Civil liability]  

A contravention of subsection (2) is not an offence, but it may give rise to civil liability under section 156 .