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.
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.
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.
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.
History
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 5
-
Fees rules for MySuper products
History
Div 5 inserted by No 162 of 2012, s 3 and Sch 1 item 9, effective 1 January 2013. For application provisions see note under Part
2C
heading.
SECTION 29V
FEES THAT MAY BE CHARGED IN RELATION TO A MYSUPER PRODUCT
29V(1)
The trustee, or the trustees, of a regulated superannuation fund that offers a MySuper product may only charge fees of one or more of the following kinds in relation to that product:
(a)
an administration fee;
(b)
an investment fee;
(c)
a buy-sell spread;
(d)
a switching fee;
(e)
(Repealed by No 16 of 2019)
(f)
an activity fee;
(g)
an advice fee;
(h)
an insurance fee.
History
S 29V(1) amended by No 16 of 2019, s 3 and Sch 1 item 3, by repealing para (e), effective 13 March 2019. For application provisions, see note under s
99G
. Para (e) formerly read:
(e)
an exit fee;
S 29V(1) amended by No 171 of 2012, s 3 and Sch 1 item 22, by inserting para (g) and (h) at the end, effective 1 January 2013.
29V(2)
An
administration fee
is a fee that relates to the administration or operation of a superannuation entity and includes costs incurred by the trustee, or the trustees, of the entity that:
(a)
relate to the administration or operation of the fund; and
(b)
are not otherwise charged as an investment fee, a buy-sell spread, a switching fee, an activity fee, an advice fee or an insurance fee.
History
S 29V(2) amended by No 16 of 2019, s 3 and Sch 1 item 4, by omitting
"
, an exit fee
"
after
"
a switching fee
"
from para (b), effective 13 March 2019. For application provisions, see note under s
99G
.
S 29V(2) amended by No 171 of 2012, s 3 and Sch 1 items 23 and 24, by substituting
"
a superannuation entity
"
for
"
the fund
"
first occurring and substituting
"
the entity that: (a) relate to the administration or operation of the fund; and (b) are not otherwise charged as an investment fee, a buy-sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee
"
for
"
the fund (that are not otherwise charged as an investment fee, a buy-sell spread, a switching fee, an exit fee or an activity fee)
"
, effective 1 January 2013.
29V(3)
An
investment fee
is a fee that relates to the investment of the assets of a superannuation entity and includes:
(a)
fees in payment for the exercise of care and expertise in the investment of those assets (including performance fees); and
(b)
costs incurred by the trustee, or the trustees, of the entity that:
(i)
relate to the investment of assets of the entity; and
(ii)
are not otherwise charged as an administration fee, a buy-sell spread, a switching fee, an activity fee, an advice fee or an insurance fee.
History
S 29V(3) amended by No 16 of 2019, s 3 and Sch 1 item 5, by omitting
"
, an exit fee
"
after
"
a switching fee
"
from para (b)(ii), effective 13 March 2019. For application provisions, see note under s
99G
.
S 29V(3) amended by No 171 of 2012, s 3 and Sch 1 items 25 and 26, by substituting
"
a superannuation entity
"
for
"
the fund
"
first occurring and substituting
"
the entity that: (i) relate to the investment of assets of the entity; and (ii) are not otherwise charged as an administration fee, a buy-sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee
"
for
"
the fund (that are not otherwise charged as an administration fee, a buy-sell spread, a switching fee, an exit fee or an activity fee)
"
in para (b), effective 1 January 2013.
29V(4)
A
buy-sell spread
is a fee to recover transaction costs incurred by the trustee, or the trustees, of a superannuation entity in relation to the sale and purchase of assets of the entity.
History
S 29V(4) amended by No 171 of 2012, s 3 and Sch 1 items 27 and 28, by inserting
"
of a superannuation entity
"
after
"
or the trustees,
"
and substituting
"
the entity
"
for
"
the fund
"
, effective 1 January 2013.
29V(5)
A
switching fee
is a fee to recover the costs of switching all or part of a member
'
s interest in a superannuation entity from one class of beneficial interest in the entity to another.
History
S 29V(5) substituted by No 171 of 2012, s 3 and Sch 1 item 29, effective 1 January 2013. S 29V(5) formerly read:
29V(5)
A
switching fee
is a fee to recover the costs of switching all or part of members
'
interests within the fund:
(a)
from a MySuper product in the fund to a MySuper product in the fund; or
(b)
from a MySuper product in the fund to a choice product in the fund; or
(c)
from a choice product in the fund to a MySuper product in the fund; or
(d)
from a choice product in the fund to a choice product in the fund.
29V(6)
(Repealed by No 16 of 2019)
History
S 29V(6) repealed by No 16 of 2019, s 3 and Sch 1 item 6, effective 13 March 2019. For application provisions, see note under s
99G
. S 29V(6) formerly read:
29V(6)
An
exit fee
is a fee to recover the costs of disposing of all or part of members
'
interests in a superannuation entity.
S 29V(6) amended by No 171 of 2012, s 3 and Sch 1 item 30, by substituting
"
a superannuation entity
"
for
"
the fund
"
, effective 1 January 2013.
29V(7)
A fee is an
activity fee
if:
(a)
the fee relates to costs incurred by the trustee, or the trustees, of a superannuation entity that are directly related to an activity of the trustee, or the trustees:
(i)
that is engaged in at the request, or with the consent, of a member; or
(ii)
that relates to a member and is required by law; and
(aa)
the fee does not satisfy the condition in paragraph
(8)(a)
; and
(b)
those costs are not otherwise charged as an administration fee, an investment fee, a buy-sell spread, a switching fee or an insurance fee.
History
S 29V(7) amended by No 19 of 2021, s 3 and Sch 3 items 4 and 5, by inserting para (aa) and omitting
"
, an advice fee
"
before
"
or an insurance fee.
"
from para (b), applicable: (a) in relation to a fee payable under an arrangement entered into on or after 1 July 2021
-
on and after 1 July 2021; or (b) in relation to a fee payable under an arrangement entered into before 1 July 2021
-
on and after 1 July 2022.
S 29V(7) amended by No 16 of 2019, s 3 and Sch 1 item 7, by omitting
"
, an exit fee
"
after
"
a switching fee
"
from para (b), effective 13 March 2019. For application provisions, see note under s
99G
.
S 29V(7) substituted by No 171 of 2012, s 3 and Sch 1 item 31, effective 1 January 2013. S 29V(7) formerly read:
29V(7)
An
activity fee
is a fee that relates to the costs incurred by the trustee, or the trustees, of the fund that:
(a)
are directly related to an activity of the trustee, or the trustees:
(i)
that is engaged in at the request, or with the consent, of a member; or
(ii)
that relates to a member and is required by law; and
(b)
are not otherwise charged as an administration fee, an investment fee, a buy-sell spread, a switching fee or an exit fee.
29V(8)
A fee is an
advice fee
if:
(a)
the fee relates directly to costs incurred by the trustee, or the trustees, of a superannuation entity because of the provision of financial product advice to a member by:
(i)
a trustee of the entity; or
(ii)
another person acting as an employee of, or under an arrangement with, a trustee or trustees of the entity; and
(b)
those costs are not otherwise charged as an administration fee, an investment fee, a switching fee or an insurance fee.
History
S 29V(8) amended by No 19 of 2021, s 3 and Sch 3 item 6, by omitting
"
, an activity fee
"
before
"
or an insurance fee.
"
from para (b), applicable: (a) in relation to a fee payable under an arrangement entered into on or after 1 July 2021
-
on and after 1 July 2021; or (b) in relation to a fee payable under an arrangement entered into before 1 July 2021
-
on and after 1 July 2022.
S 29V(8) amended by No 16 of 2019, s 3 and Sch 1 item 7, by omitting
"
, an exit fee
"
after
"
a switching fee
"
from para (b), effective 13 March 2019. For application provisions, see note under s
99G
.
S 29V(8) inserted by No 171 of 2012, s 3 and Sch 1 item 31, effective 1 January 2013.
29V(9)
A fee is an
insurance fee
if:
(a)
the fee relates directly to either or both of the following:
(i)
insurance premiums paid by the trustee, or the trustees, of a superannuation entity in relation to a member or members of the entity;
(ii)
costs incurred by the trustee, or the trustees, of a superannuation entity in relation to the provision of insurance for a member or members of the entity; and
(b)
the fee does not relate to any part of a premium paid or cost incurred in relation to a life policy or a contract of insurance that relates to a benefit to the member that is based on the performance of an investment rather than the realisation of a risk; and
(c)
the premiums and costs to which the fee relates are not otherwise charged as an administration fee, an investment fee, a switching fee, an activity fee or an advice fee.
History
S 29V(9) amended by No 16 of 2019, s 3 and Sch 1 item 7, by omitting
"
, an exit fee
"
after
"
a switching fee
"
from para (c), effective 13 March 2019. For application provisions, see note under s
99G
.
S 29V(9) inserted by No 171 of 2012, s 3 and Sch 1 item 31, effective 1 January 2013.
History
S 29V inserted by No 162 of 2012, s 3 and Sch 1 item 9, effective 1 January 2013. For application provisions see note under Part
2C
heading.
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