Superannuation Safety Amendment Act 2004 (53 of 2004)

Schedule 1   Licensing, registration and amalgamation

Part 1   Amendments commencing first

Superannuation Industry (Supervision) Act 1993

58   After Part 17

Insert:

Part 18 - Amalgamation of funds

143 Object of Part

The object of this Part is to empower APRA to approve, in certain circumstances, the transfer of all benefits of members and beneficiaries in a regulated superannuation fund or approved deposit fund to another regulated superannuation fund or approved deposit fund.

144 Benefits may be transferred to a new fund with APRA's approval etc.

(1) All benefits of members and beneficiaries in a regulated superannuation fund or approved deposit fund (the transferor fund ) may be transferred to another regulated superannuation fund or approved deposit fund (the transferee fund ) if:

(a) APRA approves the transfer under this Part; and

(b) the transfer takes place under an arrangement between all the trustees of the transferor fund and:

(i) if the trustee of the transferee fund is a body corporate - the approved trustee or the RSE licensee of the transferee fund; or

(ii) if there is a group of individual trustees of the transferee fund that is an RSE licensee - all of the individual trustees of the transferee fund.

(2) This section does not affect the transfer of any benefits in a superannuation fund or approved deposit fund under any other provision of this Act or under the regulations.

145 Application for approval of transfer

(1) An application to APRA for approval of the transfer of all benefits of members and beneficiaries in the transferor fund to the transferee fund may be made by all the trustees of the transferor fund and:

(a) if the trustee of the transferee fund is a body corporate - the approved trustee or the RSE licensee of the transferee fund; or

(b) if there is a group of individual trustees of the transferee fund that is an RSE licensee - all of the individual trustees of the transferee fund.

(2) The application must be in the approved form.

146 Approval of transfer

(1) APRA may approve the transfer of all benefits of members and beneficiaries in the transferor fund to the transferee fund in accordance with an application under section 145 if, and only if, APRA is satisfied that:

(a) either:

(i) reasonable attempts to bring about the transfer under another provision of this Act or under the regulations have failed; or

(ii) the transfer would take place under a scheme formulated under section 142; and

(b) the transfer is reasonable in all the circumstances, having regard to:

(i) the benefit entitlements of members and beneficiaries under the governing rules of the transferor fund; and

(ii) the likely effect on the amount of those entitlements if those members and beneficiaries were to remain members and beneficiaries of the transferor fund; and

(iii) the benefit entitlements of members and beneficiaries under the governing rules of the transferee fund; and

(iv) the value of the assets transferred from the transferor fund to the transferee fund under the arrangement referred to in paragraph 144(1)(b); and

(c) the transfer would not adversely affect the interests of the members and beneficiaries of the transferee fund; and

(d) the transferee fund has an approved trustee or an RSE licensee.

(2) APRA must not approve the transfer without the Minister's written consent.

147 Cessation of rights against transferor fund

If the benefits of members and beneficiaries in a transferor fund are transferred to a transferee fund under this Part:

(a) the members and beneficiaries cease to have rights against the transferor fund; and

(b) if:

(i) immediately before the transfer occurred, another person had a contingent right against the transferor fund to a death or disability benefit; and

(ii) the contingent right was derived from a member's or beneficiary's capacity as a member or beneficiary of the transferor fund;

the other person ceases to have the contingent right against the transferor fund.

To avoid doubt, a reference in paragraph (a) to a right against the transferor fund includes a reference to a contingent right to a death or disability benefit.