Superannuation Industry (Supervision) Amendment Regulations 1999 (No. 3)

(115 of 1999)

9 June 1999

Made under Superannuation Industry (Supervision) Act 1993

1   Name of regulations

These regulations are the Superannuation Industry (Supervision) Amendment Regulations 1999 (No. 3).

2   Commencement

(1) Regulations 1, 2 and 3 and Schedule 1 commence on gazettal.

(2) Schedule 2 commences on the commencement of Part 2 of Schedule 2 to the Superannuation Legislation Amendment Act 1999.

(3) Schedule 3 commences on 1 July 1999.

3   Amendment of Superannuation Industry (Supervision) Regulations 1994

Schedules 1, 2 and 3 amend the Superannuation Industry (Supervision) Regulations 1994.

Schedule 1   Amendments commencing on gazettal

[1]   After regulation 2.24B

insert

2.24C Information if trustee required to provide benefits

(1) If, at the time member information is required to be given under regulation 2.22 or 2.24A, there is in force a notice given to the trustee by a member under subregulation 6.17A (4), the member information must be accompanied by a statement calling the member's attention to:

(a) the person, persons or class, or classes, of persons mentioned in the notice; and

(b) the fact that, in accordance with the notice, the trustee will pay a benefit in respect of the member, on or after the death of the member, to the person, persons or class, or classes, of persons mentioned in the notice if:

(i) the person, or each person, mentioned in the notice is the legal personal representative or a dependant of the member; and

(ii) the proportion of the benefit that will be paid to that person, or to each of those persons, is certain or readily ascertainable from the notice or a statement under regulation 6.17B; and

(iii) the notice is in effect; and

(c) the statement of the member about:

(i) the proportion of the benefit that will be paid to the person, or to each person, mentioned in the notice; or

(ii) how that proportion is to be determined; and

(d) the fact that the member may confirm, amend or revoke the notice in accordance with subregulation 6.17A (5); and

(e) the date when the notice ceases to have effect under paragraph 6.17A (7) (a) or (b).

(2) The trustee must give to the member, at the time when the trustee gives the statement mentioned in subregulation (1), a document that the member may use to confirm, amend or revoke the notice.

(3) In this regulation, a reference to a notice includes a reference to the notice as confirmed, or amended, under subregulation 6.17A (5).

[2]   After regulation 6.17

insert

6.17A Payment of benefit on or after death of member (Act, s 59 (1A))

(1) For subsections 31 (1) and 32 (1) of the Act, the standard set out in subregulation (4) is applicable to the operation of regulated superannuation funds and approved deposit funds.

(2) For subsection 59 (1A) of the Act, the governing rules of a fund may permit a member of the fund to require the trustee to provide any benefits in respect of the member, on or after the death of the member, to the legal personal representative or a dependant of the member if the trustee gives to the member information under subregulation (3).

(3) The trustee must give to the member information that the trustee reasonably believes the member reasonably needs for the purpose of understanding the right of that member to require the trustee to provide the benefits.

(4) Subject to regulation 6.17B, if the governing rules of a fund permit a member of the fund to require the trustee to provide any benefits in accordance with subregulation (2), the trustee must pay a benefit in respect of the member, on or after the death of the member, to the person or persons mentioned in a notice given to the trustee by the member if:

(a) the person, or each of the persons, mentioned in the notice is the legal personal representative or a dependant of the member; and

(b) the proportion of the benefit that will be paid to that person, or to each of those persons, is certain or readily ascertainable from the notice; and

(c) the notice is in accordance with subregulation (6); and

(d) the notice is in effect.

(5) A member who gives notice under subregulation (4) may:

(a) confirm the notice by giving to the trustee a written notice, signed, and dated, by the member, to that effect; or

(b) amend, or revoke, the notice by giving to the trustee notice, in accordance with subregulation (6), of the amendment or revocation.

(6) For paragraphs (4) (c) and (5) (b), the notice:

(a) must be in writing; and

(b) must be signed, and dated, by the member in the presence of 2 witnesses, being persons:

(i) each of whom has turned 18; and

(ii) neither of whom is a person mentioned in the notice; and

(c) must contain a declaration signed, and dated, by the witnesses stating that the notice was signed by the member in their presence.

(7) Unless sooner revoked by the member, a notice under subregulation (4) ceases to have effect:

(a) at the end of the period of 3 years after the day it was first signed, or last confirmed or amended, by the member; or

(b) if the governing rules of the fund fix a shorter period - at the end of that period.

6.17B Duty to seek information

If an item of information given by a member in a notice under subregulation 6.17A (4) is not sufficiently clear to allow the trustee to pay the benefit, the trustee must seek from the member a written statement to clarify the item as soon as practicable after the trustee receives the notice.

Example

If the proportion of the benefit that will be paid to the person, or to each person, mentioned in the notice is not certain, or is not readily ascertainable from the notice given by the member, the trustee must seek a statement of that proportion from the member.

Schedule 2   Amendments commencing on the commencement of Part 2 of Schedule 2 to the Superannuation Legislation Amendment Act 1999

[1]   Paragraph 3.12 (a)

omit

the applicant from whom the entity received the money;

insert

the person on whose behalf the money was received;

[2]   Subparagraphs 3.12 (b) (i) and (ii)

substitute

(i) the relevant superannuation interest is issued to the person on whose behalf the money was received; or

(ii) the money is refunded to the person from whom the entity received the money.

[3]   Subregulation 13.17 (1)

substitute

(1) For subsection 32 (1) of the Act, it is a standard applicable to the operation of approved deposit funds that, except so far as permitted by subregulation (2), a trustee of a fund must not, in that capacity, invest in:

(a) the trustee itself; or

(b) a related body corporate.

[4]   Subregulation 13.17A (1)

substitute

(1) For subsection 31 (1) of the Act, it is a standard applicable to the operation of public offer superannuation funds that, except so far as permitted by subregulation (2), a trustee of a fund must not, in that capacity, invest in:

(a) the trustee itself; or

(b) a related body corporate.

Schedule 3   Amendments commencing on 1 July 1999

[1]   Regulation 2.01, definition of sub-fund, paragraph (b)

substitute

(b) the interest of each beneficiary of the sub-fund is determined by reference only to the conditions governing that sub-fund;

[2]   Paragraph 5.16 (1) (b)

substitute

(b) the interest of each beneficiary of the sub-fund is determined by reference only to the conditions governing that sub-fund; and