Superannuation Industry (Supervision) Act 1993
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Hide history notePt 2 repealed by No 53 of 2004, s 3 and Sch 1 item 71, effective 1 July 2006.
(Repealed by No 53 of 2004)
S 26 repealed by No 53 of 2004, s 3 and Sch 1 item 71, effective 1 July 2006. S 26 formerly read:
S 26(1) amended by No 53 of 2004, s 3 and Sch 1 item 25, by inserting para (c), effective 1 July 2004. S 26(1) amended by No 54 of 1998 and No 169 of 1995. S 26(1A) inserted by No 169 of 1995. S 26(2) amended by No 54 of 1998. S 26(4) amended by No 54 of 1998. S 26(5) amended by No 54 of 1998. S 26(6) inserted by No 144 of 1995.
net tangible assets
S 26(7) inserted by No 53 of 2004, s 3 and Sch 1 item 26, effective 1 July 2004.
SECTION 26 DECIDING AN APPLICATION FOR APPROVAL
26(1)
APRA must, in writing, approve an applicant as a trustee for the purposes of this Act if, and only if:
(a)
APRA is satisfied that the applicant can be relied on to perform, in a proper manner, the duties of trustee of any relevant entity of which the applicant is or becomes the trustee; and
(b)
at least one of the following subparagraphs applies:
(i)
APRA is satisfied that the value of the net tangible assets of the applicant is not less than the amount prescribed by the regulations;
(ii)
APRA is satisfied that the applicant is entitled to the benefit of an approved guarantee of an amount not less than the amount prescribed by the regulations, being a guarantee in respect of the applicant's duties as trustee of each relevant entity of which the applicant is, or is proposing to become, the trustee;
(iia)
APRA is satisfied that the applicant passes the test set out in subsection (1A);
(iii)
the applicant has agreed to comply with the written requirements given to the applicant by APRA before the granting of the approval, being requirements relating to the custody of the assets of a relevant entity or relevant entities of which the applicant is or becomes the trustee; and
(c)
the applicant's application was made before the start of the licensing transition period.
26(1A)
For the purposes of subparagraph (1)(b)(iia), the applicant passes the test set out in this subsection if:
(a)
the applicant is entitled to the benefit of an approved guarantee, being a guarantee in respect of the applicant's duties as trustee of each relevant entity of which the applicant is, or is proposing to become, the trustee; and
(b)
the sum of the amount of the approved guarantee and the value of the net tangible assets of the applicant is not less than the amount prescribed by the regulations.
26(2)
Otherwise, APRA must, in writing, refuse the application.
26(3)
The approval is subject to any conditions specified in the instrument of approval.
26(4)
If APRA refuses the application, APRA must set out the reasons for the refusal in the instrument of refusal.
26(5)
APRA must cause the applicant to be given a copy of the instrument of approval or refusal.
26(6)
An instrument of approval must designate a particular subparagraph of paragraph (1)(b) as the subparagraph on the basis of which the applicant is approved.
26(7)
In this section:
has the meaning given by the regulations.
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