Superannuation Industry (Supervision) Act 1993

PART 2C - MYSUPER

History

Pt 2C inserted by No 162 of 2012, s 3 and Sch 1 item 9, effective 1 January 2013. No 162 of 2012 (as amended by No 61 of 2013), s 3 and Sch 1 Part 2 items 10 - 13 contain the following application provisions:

Part 2 - Application and transitional provisions
10 Definitions
10
In this Part:
SG Act
means the Superannuation Guarantee (Administration) Act 1992 .

SIS Act
means the Superannuation Industry (Supervision) Act 1993 .
11 Authority to offer a MySuper product given before 1 July 2013
11
If, before 1 July 2013, APRA authorises an RSE licensee to offer a class of beneficial interest in a regulated superannuation fund as a MySuper product, that authority takes effect on 1 July 2013. 11A Enhanced trustee obligations - decisions made before 1 July 2013
Decision to give, or refuse to give, authority to offer a MySuper product

11A(1)
Subitem (2) applies if, before 1 July 2013, APRA makes a decision under section 29T of the SIS Act to give, or refuse to give, an RSE licensee authority to offer a class of beneficial interest in a regulated superannuation fund as a MySuper product.

11A(2)
APRA ' s decision is not invalid merely because the enhanced trustee obligations do not commence until 1 July 2013, provided subitem (3) or (4) has been complied with.

11A(3)
If the decision is to give authority, APRA must be satisfied at the time it makes the decision that it is likely that on and after 1 July 2013:

(a) where the RSE licensee is a body corporate - the RSE licensee; or

(b) where the RSE licensee is made up of a group of individual trustees - each of those individual trustees;
will comply with the enhanced trustee obligations for MySuper products that will come into force on that day.

11A(4)
If the decision is to refuse to give authority on the ground that:

(a) where the RSE licensee is a body corporate - the RSE licensee; or

(b) where the RSE licensee is made up of a group of individual trustees - each of those individual trustees;
will not comply with the enhanced trustee obligations for MySuper products that will come into force on 1 July 2013, APRA must be satisfied at the time it makes the decision that it is not likely that the person will satisfy those obligations on and after 1 July 2013.

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S 11A inserted by No 61 of 2013, s 3 and Sch 1 item 120, effective 26 June 2013.

12 Applications for authority to offer a MySuper product for a large employer
12(1)
This item applies if:

(a) an RSE licensee makes an application to APRA before 1 July 2013 under section 29S of the SIS Act for authority to offer a class of beneficial interest in a regulated superannuation fund as a MySuper product; and

(b) the application is made on the basis that the class of interest is one in relation to which section 29TB of the SIS Act is satisfied.

12(2)
Section 29SB of the SIS Act (period for considering the application) applies as if:

(a) the application were received on 1 July 2013; and

(b) the references in paragraphs (1)(a) and (b) of that section to " 60 days " were instead references to " 120 days " .

12(3)
Sections 29WA and 29WB of the SIS Act (contributions in relation to which no election made) do not apply in relation to a contribution if:

(a) the contribution is made during the period in which APRA decides the application (see section 29SB of the SIS Act); and

(b) the contribution is paid into the class of beneficial interest to which the application relates.
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S 12(3) amended by No 61 of 2013, s 3 and Sch 1 item 121, by substituting " Sections 29WA and 29WB of the SIS Act (contributions in relation to which no election made) do not apply " for " Section 29WA of the SIS Act (contributions in relation to which no election made) does not apply " , effective 27 June 2013.

12(4)
On and after 1 January 2014, a contribution to the fund is taken to satisfy paragraph 32C(2)(c) of the SG Act (employer ' s superannuation guarantee obligation) if the contribution is made during the period in which APRA decides the application (see section 29SB of the SIS Act).

12(5)
If APRA refuses the application, then:

(a) a contribution to the fund made on or after 1 January 2014 is taken to satisfy paragraph 32C(2)(c) of the SG Act, provided it is made before the end of the grace period; and

(b) sections 29WA and 29WB of the SIS Act do not apply in relation to a contribution to the fund made on or after 1 January 2014, provided it is paid into the class of beneficial interest to which the application relates before the end of the grace period.
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S 12(5) amended by No 61 of 2013, s 3 and Sch 1 item 122, by substituting " sections 29WA and 29WB of the SIS Act do not apply " for " section 29WA of the SIS Act does not apply " in para (b), effective 27 June 2013.

12(6)
For the purposes of subitem (5), the grace period is a period of 3 months beginning on the day on which APRA refuses the application.
13 Contributions in relation to which no election made
13
Sections 29WA and 29WB of the SIS Act apply to contributions made to a regulated superannuation fund on or after 1 January 2014.
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S 13 amended by No 61 of 2013, s 3 and Sch 1 item 123, by substituting " Sections 29WA and 29WB of the SIS Act apply " for " Section 29WA of the SIS Act applies " , effective 27 June 2013.

Division 1 - Object of this Part

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SECTION 29R OBJECT OF THIS PART

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29R(1)
It is intended that all MySuper products will be simple products sharing common characteristics.

29R(2)
The object of this Part is to ensure that a class of beneficial interest in a regulated superannuation fund is not offered as a MySuper product unless it has those characteristics.

29R(3)
This is done by requiring the RSE licensee of a regulated superannuation fund to obtain authority from APRA before offering a class of beneficial interest in the fund as a MySuper product.

29R(4)
The ability of an RSE licensee to offer a MySuper product is significant for the purposes of the Superannuation Guarantee (Administration) Act 1992 . Under that Act, employers will need to pay contributions for an employee who has no chosen fund into a fund that offers a MySuper product, in order to meet the choice of fund requirements and so avoid an increased individual superannuation guarantee shortfall for the employee.

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