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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History

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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History

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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History

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 4 - Cancelling authority

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SECTION 29U CANCELLING AUTHORITY TO OFFER MYSUPER PRODUCT

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29U(1)
APRA may, in writing, cancel an authority to offer a class of beneficial interest in a regulated superannuation fund as a MySuper product.

29U(2)
Without limiting subsection (1) , APRA may cancel an authority to offer a class of beneficial interest in a regulated superannuation fund as a MySuper product if:

(a) APRA is no longer satisfied that section 29TC is satisfied in relation to that class of beneficial interest in the fund; or

(b)

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authority was given to offer that class of beneficial interest in the fund as a MySuper product because section 29TB was satisfied in relation to the class and either:

(i) in a case where that section was satisfied because APRA was satisfied that an employer would be a large employer by the end of a period specified in the authority - the employer was not a large employer at that time; or

(ii) in any case - that section was no longer satisfied in relation to the class on the last day of the immediately preceding year of income; or

(c)

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APRA has reason to believe that:

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

(ii) where the RSE licensee is made up of a group of individual trustees - any of those individual trustees;

may not comply with the enhanced trustee obligations for MySuper products (whether because of a previous failure to do so, or for any other reason); or

(ca)

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where the RSE licensee is a body corporate - APRA has reason to believe that the directors of the RSE licensee may not comply with the enhanced director obligations for MySuper products (whether because of a previous failure to do so, or for any other reason); or

(d)

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APRA has reason to believe that:

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

(ii) where the RSE licensee is made up of a group of individual trustees - any of those individual trustees;

may not comply with the general fees rules and the fees rules in relation to MySuper products (whether because of a previous failure to do so, or for any other reason); or

(e)

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APRA has reason to believe that:

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

(ii) where the RSE licensee is made up of a group of individual trustees - any of those individual trustees;

may contravene section 29W , 29WA or 29WB (whether because of a previous contravention of that section, or for any other reason); or

(f) the fund ceases to be registered under Part 2B ; or

(g)

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either:

(i) in a case where authority was given to offer the class of beneficial interest in the fund as a MySuper product on the basis that the fund would have 7 or more members within a period specified in the authority - the fund does not have 7 or more members at the end of that period; or

(ii) in any case - the fund has ceased to have 7 or more members; or

(h) paragraph 29T(1)(e) is no longer satisfied in relation to the fund (no longer an eligible rollover fund); or

(i) APRA is satisfied that:

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

(ii) where the RSE licensee is made up of a group of individual trustees - one of those individual trustees;

has contravened a provision of the governing rules of the fund relating to the MySuper product; or

(j)

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APRA is satisfied that the RSE licensee has failed to give effect to an election made in accordance with section 29SAA (election to transfer accrued default amounts to a MySuper product); or

(k)

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APRA is satisfied that the RSE licensee has failed to give effect to an election made in accordance with section 29SAC (election not to pass costs of conflicted remuneration to MySuper members).

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History

S 29U(2) amended by No 47 of 2021, s 3 and Sch 1 item 13, by substituting " 7 or more members " for " 5 or more members " (wherever occurring) in para (g)(i) and (ii), effective 1 July 2021.

S 29U(2) amended by No 40 of 2019, s 3 and Sch 2 item 2, by substituting para (c), (ca), (d), (e), effective 1 April 2019. Para (c), (ca), (d), (e) formerly read:

(c) APRA is no longer satisfied that:

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

(ii) where the RSE licensee is made up of a group of individual trustees - each of those individual trustees;
is likely to comply with the enhanced trustee obligations for MySuper products (whether because of a previous failure to do so, or for any other reason); or

(ca) where the RSE licensee is a body corporate - APRA is no longer satisfied that the directors of the RSE licensee are likely to comply with the enhanced director obligations for MySuper products (whether because of a previous failure to do so, or for any other reason); or

(d) APRA is no longer satisfied that:

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

(ii) where the RSE licensee is made up of a group of individual trustees - each of those individual trustees;
is likely to comply with the general fees rules and the fees rules in relation to MySuper products (whether because of a previous failure to do so, or for any other reason); or

(e) APRA is no longer satisfied that the RSE licensee is not likely to contravene section 29W, 29WA or 29WB (whether because of a previous contravention of that section, or for any other reason); or

S 29U(2) amended by No 61 of 2013, s 3 and Sch 1 items 40 - 41, by substituting " authority was given " for " the RSE licensee was authorised " in para (b) and " , 29WA or 29WB " for " or 29WA " in para (e), effective 27 June 2013. For application and transitional provision, see history note under s 29T(1) .

S 29U(2) amended by No 117 of 2012, s 3 and Sch 1 item 8, by inserting para (ca), effective 1 July 2013.

S 29U(2) amended by No 171 of 2012, s 3 and Sch 1 items 20 and 21 and Sch 6 item 8, by inserting " the general fees rules and " after " is likely to comply with " in para (d) and inserting para (j) and (k), effective 1 January 2013.

29U(3)
If APRA cancels an authority to offer a class of beneficial interest in a regulated superannuation fund as a MySuper product it must take all reasonable steps to ensure that the RSE licensee is given a notice informing the RSE licensee:

(a) that APRA has cancelled the authority; and

(b) of the reasons for the cancellation.

29U(4)

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If:

(a) APRA cancels an authority to offer a class of beneficial interest in a regulated superannuation fund as a MySuper product; and

(b) as a result of the cancellation, the fund no longer offers any MySuper product;

APRA must also notify the Fair Work Commission in writing of that fact.

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