Superannuation Legislation Amendment (Service Providers and Other Governance Measures) Act 2013 (61 of 2013)

Schedule 1   Amendments

Part 1   Amendments

Superannuation Industry (Supervision) Act 1993

49   Section 35A

Repeal the section, substitute:

Division 2 - Obligations for registrable superannuation entities

35A Accounting records

Accounting records must be kept etc.

(1) Each trustee of a registrable superannuation entity must ensure that:

(a) accounting records that correctly record and explain the transactions and financial position of the RSE licensee for the entity and the entity are kept; and

(b) the accounting records of the RSE licensee and the entity are kept in a way that enables:

(i) the preparation of reporting documents referred to in section 13 of the Financial Sector (Collection of Data) Act 2001; and

(ii) the preparation of any other documents required to be audited under the RSE licensee law; and

(c) the accounting records of the RSE licensee and the entity are kept in a way that enables those reporting documents and other documents to be conveniently and properly audited in accordance with the RSE licensee law.

(2) If accounting records of an RSE licensee or a registrable superannuation entity are kept in accordance with subsection (1), each trustee of the entity must ensure that:

(a) the records are retained for at least 5 years after the end of the year of income to which the transactions relate; and

(b) the records are kept either:

(i) in Australia; or

(ii) in another country if the Regulator gives written approval for the records to be kept in that country, and the conditions (if any) specified in the approval are met; and

(c) the records are kept:

(i) in writing in the English language; or

(ii) in a form in which they are readily accessible and readily convertible into writing in the English language.

(3) An approval given under subparagraph (2)(b)(ii) may be given subject to specified conditions.

Notification of address where accounting records are kept

(4) A trustee of a registrable superannuation entity must notify APRA, in the approved form, of the address where the accounting records of the RSE licensee and the entity are kept:

(a) if, immediately before the commencement of this subsection, APRA has not already been notified of the current address where the accounting records of the RSE licensee or the entity are kept - within 28 days after that commencement; or

(b) otherwise - within 28 days after the entity is registered under section 29M.

(5) If:

(a) a trustee of a registrable superannuation entity has notified APRA of the address where the accounting records of the RSE licensee and the entity are kept; and

(b) the entity moves the accounting records to a new address;

a trustee of the entity must notify APRA, in the approved form and within 28 days after the day on which the accounting records are moved to the new address, of the new address where the accounting records are kept.

Offences

(6) A trustee commits an offence if the trustee contravenes subsection (1), (2), (4) or (5).

Penalty: 100 penalty units.

(7) A trustee commits an offence of strict liability if the trustee contravenes subsection (1), (2), (4) or (5).

Penalty: 50 penalty units.

Note: For strict liability, see section 6.1 of the Criminal Code.

35AB Auditor requests for documents

(1) If the auditor of a registrable superannuation entity requests, in writing, a trustee of the entity to give the auditor a document, each trustee of the entity must ensure that the document is given to the auditor within 14 days of the request being made. An auditor may only request documents that are relevant to the preparation of a report about the operations of the entity or the RSE licensee of the entity.

(2) A trustee commits an offence if the trustee contravenes subsection (1).

Penalty: Imprisonment for 2 years.

(3) A trustee commits an offence of strict liability if the trustee contravenes subsection (1).

Penalty: 50 penalty units.

Note: For strict liability, see section 6.1 of the Criminal Code.

35AC Appointed auditor's functions and duties

(1) This section applies if the RSE licensee law:

(a) requires an auditor of a registrable superannuation entity to be appointed; or

(b) requires or permits a function or duty to be performed, or a power to be exercised, by an auditor.

(2) The RSE licensee of the registrable superannuation entity must not appoint a person as an auditor of the entity unless the RSE licensee is reasonably satisfied that the person:

(a) meets the eligibility criteria for auditors of registrable superannuation entities set out in the prudential standards; and

(b) has not been disqualified from being or acting as an auditor of a registrable superannuation entity under section 130D.

(3) A person who is appointed as an auditor must perform the functions and duties set out in the RSE licensee law that are relevant to the person's appointment.

(4) The appointed auditor must comply with the RSE licensee law in performing the functions and duties.

(5) The trustee of the registrable superannuation entity to whom the RSE licensee law applies must make any arrangements that are necessary to enable the appointed auditor to perform the functions and duties.

(6) The RSE licensee of the registrable superannuation entity must end the appointment of a person as an auditor of the entity if the RSE licensee becomes aware that the person:

(a) no longer meets the eligibility criteria for auditors of registrable superannuation entities set out in the prudential standards; or

(b) has been disqualified from being or acting as an auditor of a registrable superannuation entity under section 130D.

35AD Appointed actuary's functions and duties

(1) This section applies if the RSE licensee law:

(a) requires an actuary of a registrable superannuation entity to be appointed; or

(b) requires or permits a function or duty to be performed, or a power to be exercised, by an actuary.

(2) The RSE licensee of a registrable superannuation entity must not appoint a person as an actuary of the entity unless the RSE licensee is reasonably satisfied that the person:

(a) meets the eligibility criteria for actuaries of registrable superannuation entities set out in the prudential standards; and

(b) has not been disqualified from being or acting as an actuary of a registrable superannuation entity under section 130D.

(3) A person who is appointed as an actuary must perform the functions and duties set out in the RSE licensee law that are relevant to the person's appointment.

(4) The appointed actuary must comply with the RSE licensee law in performing the functions and duties.

(5) The trustee of the registrable superannuation entity to whom the RSE licensee law applies must make any arrangements that are necessary to enable the appointed actuary to perform the functions and duties.

(6) The RSE licensee of a registrable superannuation entity must end the appointment of a person as an actuary of the entity if the RSE licensee becomes aware that the person:

(a) no longer meets the eligibility criteria for actuaries of registrable superannuation entities set out in the prudential standards; or

(b) has been disqualified from being or acting as an actuary of a registrable superannuation entity under section 130D.

Division 3 - Obligations for self managed superannuation funds

35AE Accounting records

Accounting records must be kept etc.

(1) Each trustee of a superannuation entity that is a self managed superannuation fund must ensure that:

(a) accounting records that correctly record and explain the transactions and financial position of the entity are kept; and

(b) the accounting records of the entity are kept in a way that enables the following to be prepared:

(i) the accounts and statements of the entity referred to in section 35B;

(ii) the returns of the entity referred to in section 35D; and

(c) the accounting records of the entity are kept in a way that enables those accounts, statements and returns to be conveniently and properly audited in accordance with this Act.

(2) If accounting records of a superannuation entity that is a self managed superannuation fund are kept in accordance with subsection (1), each trustee of the superannuation entity must ensure that:

(a) the records are retained for at least 5 years after the end of the year of income to which the transactions relate; and

(b) the records are kept in Australia; and

(c) the records are kept:

(i) in writing in the English language; or

(ii) in a form in which they are readily accessible and readily convertible into writing in the English language.

Offences

(3) A trustee commits an offence if the trustee contravenes subsection (1) or (2).

Penalty: 100 penalty units.

(4) A trustee commits an offence of strict liability if the trustee contravenes subsection (1) or (2).

Penalty: 50 penalty units.

Note: For strict liability, see section 6.1 of the Criminal Code.