Superannuation Industry (Supervision) Regulations 1994
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Hide history notePt 5 heading substituted by SR No 64 of 1995.
Div 5.5 repealed by SLI No 86 of 2013, reg 4 and Sch 1 item 8, effective 1 July 2013. Div 5.5 formerly read:
Division 5.5 - Member-protection standards
SECTION 5.12 REGULATION 5.12 INTERPRETATION
5.12
In this Division:exit fee
means a fee charged by a trustee of a fund in relation to a payment of benefits in the fund, being a fee that the trustee would not have charged if the payment had not been made.member reporting period
, in relation to a fund, means the reporting period that applies under subsection 1017D(2) of the Corporations Act 2001 and associated provisions.HistoryDefinition of " member reporting period " substituted by SR No 21 of 2002, reg 3 and Sch 1 item 33, effective 11 March 2002. The definition formerly read:
'member reporting period'
in relation to a fund, means:
(a) a member reporting period that applies under Subdivision 2.4.2 ; or
(b) an exit reporting period within the meaning of regulation 2.44.Reg 5.12 inserted by SR No 64 of 1995.
SECTION 5.13 REGULATION 5.13 OPERATING STANDARDS - MEMBER PROTECTION
5.13
For the purposes of subsections 31(1) and 32(1) of the Act, a requirement set out in this Division is a standard applicable to the operation of regulated superannuation funds and approved deposit funds.REGULATION 5.14 MEMBER-PROTECTION STANDARDS NOT TO APPLY TO CERTAIN FUNDSHistoryReg 5.13 substituted by SR No 159 of 1995; inserted by SR No 64 of 1995.
5.14(1)
In this regulation:unitised fund
means a fund for which the investment return is reflected in the price of units in the fund rather than being credited to or debited against the accounts of the members.
5.14(1A)
(Omitted by SR No 384 of 1995)HistoryReg 5.14(1A) inserted by SR No 159 of 1995.
5.14(2)
The member-protection standards do not apply to a unitised fund if:
(a) a single price is applicable both to the buying and selling of units in the fund and all the administration costs of the fund are reflected in that price; or
(b) separate prices are applicable, respectively, to the buying and selling of units in the fund and:
(i) the price differential, also known as the buy/sell cost spread, is solely attributable to outgoings comprising:
(A) brokerage costs; and
(B) fees and charges charged against a member ' s benefits that are excluded from the definition of administration costs under paragraphs (a), (b) and (c) of that definition in subregulation 5.01(1) ; and
(ii) the brokerage costs referred to in sub-subparagraph (i)(A), if any, are applied proportionally in relation to all units in the fund; and
(iii) all the administration costs of the fund, except for any brokerage costs applied in accordance with sub-subparagraph (i)(A) and subparagraph (ii), are reflected in both the buy price and the sell price of the units; or
(c) the administration costs of the fund are not wholly reflected in the price, or prices, of units in the fund but the benefits of its members are protected in a way that is consistent with the member-protection standards.HistoryReg 5.14(2) substituted by SR No 384 of 1995.
5.14(3)
The member protection standards do not apply to a fund that is not a unitised fund if all of the administration costs of the fund are applied to each member in direct proportion to:
(a) the investment return credited to, or debited against, the member; or
(b) the member ' s benefits.HistoryReg 5.14(3) inserted by SR No 384 of 1995.
Reg 5.14 inserted by SR No 64 of 1995.
SECTION 5.15 REGULATION 5.15 MEMBER-PROTECTION STANDARDS NOT TO APPLY TO CERTAIN PROTECTED MEMBERS
5.15
If:
(a) a member of a fund is a protected member at the end of a member reporting period; and
(b) the trustee of the fund has a reasonable expectation (in accordance with regulation 7.9.24 of the Corporations Regulations 2001 and subsections 7.1(12) to (15) of Part 7 of Schedule 10A to the Corporations Regulations 2001 ) that the member will have a withdrawal benefit of at least $1,500 within 12 months after the end of that member reporting period; and
(c) his or her withdrawal benefits reach $1,500 within 12 months after the end of that member reporting period;he or she is taken not to have been subject to the member-protection standards from the beginning of that member reporting period until the end of that period of 12 months.
Note: See regulation 2.26B in relation to protected members whose benefits are reasonably expected to reach $1,500 within the period of 12 months after the end of a member reporting period.
HistoryReg 5.15(b) amended by SR No 21 of 2002, reg 3 and Sch 1 item 34, effective 11 March 2002, by substituting " regulation 7.9.24 of the Corporations Regulations 2001 and subsections 7.1(12) to (15) of Part 7 of Schedule 10A to the Corporations Regulations 2001 ) " for " regulation 2.26B) " .
Reg 5.15 inserted by SR No 64 of 1995.
SECTION 5.15A REGULATION 5.15A LIMITATION OF APPLICATION OF MEMBER-PROTECTION STANDARDS TO CERTAIN PERSONAL SUPERANNUATION MEMBERS
5.15A
(Repealed by SR No 200 of 2002)REGULATION 5.15B MEMBER-PROTECTION STANDARDS TAKEN NOT TO HAVE APPLIED TO CERTAIN MEMBERSHistoryReg 5.15A repealed by SR No 200 of 2002, reg 4 Sch 2 item 3, effective 29 August 2002. Reg 5.15A formerly read:
REGULATION 5.15A LIMITATION OF APPLICATION OF MEMBER-PROTECTION STANDARDS TO CERTAIN PERSONAL SUPERANNUATION MEMBERS
5.15A
If an existing personal superannuation member (within the meaning of Division 5.6) of a regulated superannuation fund has elected under that Division not to be treated as a protected member, the member-protection standards have only lost-member operation in respect of that member while he or she remains a member of the fund.Reg 5.15A inserted by SR No 159 of 1995.
5.15B(1)
If:
(a) before 1 July 1995, the trustee of a regulated superannuation fund has formed the intention:
(i) to apply, on behalf of a member of the fund, to an eligible rollover fund for the issue to the member of a superannuation interest in the latter fund; or
(ii) not to protect the benefits of a member; and
(b) the trustee keeps a record of having formed that intention, being a record that identifies the member; and
(c) the benefits of the member are paid out of the fund before 1 October 1995; and
(d) the trustee has not charged an exit fee in respect of the payment of those benefits out of the fund;the member-protection standards are taken not to have applied to the member in respect of his or her membership of the fund during the period ending on the date on which the last of the member's benefits are paid out of the fund.
5.15B(2)
In subregulation (1), a reference to payment of benefits out of a fund includes:
(a) rolling over or transferring the benefits; and
(b) cashing the benefits; and
(c) any combination of rolling over, transferring and cashing the benefits.
HistoryReg 5.15B inserted by SR No 159 of 1995.
SECTION 5.15C REGULATION 5.15C MEMBER-PROTECTION STANDARDS NOT TO APPLY TO PENSIONS
5.15C
The member-protection standards do not apply to any part of a member's benefits which has commenced to be taken in the form of a pension.HistoryReg 5.15C inserted by SR No 384 of 1995.
SECTION 5.15D REGULATION 5.15D MEMBER-PROTECTION STANDARDS NOT TO APPLY TO TRADITIONAL LIFE INSURANCE POLICIES
5.15D
The member-protection standards do not apply to a part of a member's benefits that is wholly determined by a life insurance policy within the meaning of the Life Insurance Act 1995 if:
(a) the policy includes an investment component; and
(b) the premium is not dissected (whether by reference to the investment component or otherwise); and
(c) the sum insured, together with bonuses (if any), is payable only upon:
(i) the death of the life insured; or
(ii) the occurrence of the earlier of the following events:
(A) the death of the life insured; or
(B) the attainment by the life insured of the age specified in the policy.REGULATION 5.16 APPLICATION OF MEMBER-PROTECTION STANDARDS TO SUB-FUNDHistoryReg 5.15D inserted by SR No 384 of 1995.
5.16(1)
Subject to subregulation (2), the trustee of a fund may treat a sub-fund within the fund as a fund for the purposes of the member-protection standards if the sub-fund satisfies the following conditions (otherwise than for the purposes of winding up):
(a) the sub-fund has separately identifiable assets and separately identifiable beneficiaries; and
(b) the interest of each beneficiary of the sub-fund is determined by reference only to the conditions governing that sub-fund; and
(c) there is no transfer of assets, benefits or money between the sub-fund and another sub-fund without a transfer of a corresponding beneficial interest; and
(d) the insurance and administration costs of the sub-fund are attributable only to the sub-fund.HistoryReg 5.16(1) amended by SR No 115 of 1999.
5.16(2)
The trustee may not treat a sub-fund as a fund if the purpose of doing so is to circumvent the member-protection standards.
REGULATION 5.17 MEMBER-PROTECTION STANDARDSHistoryReg 5.16 inserted by SR No 64 of 1995.
5.17(1)
This regulation applies in relation to a member of a fund who, on or after 1 July 1995, is a protected member.HistoryReg 5.17(1) substituted by SR No 200 of 2002, reg 4 and Sch 2 item 4, effective 29 August 2002. Reg 5.17(1) formerly read:
5.17(1)
This regulation applies in relation to a member of a fund:
(a) who, on or after 1 July 1995, is a protected member; or
(b) if, on or after 30 June 1996:
(i) the member:
(A) is a lost member at the end of a member reporting period, or at an earlier time chosen by the trustee that is within that period; or
(B) joins the fund as a lost member; and
(ii) 90 days have elapsed since the relevant time mentioned in subparagraph (i); and
(iii) the member remains a lost member.Reg 5.17(1) amended by SR No 317 of 1999, SR No 193 of 1998 and SR No 159 of 1995.
5.17(2)
Subject to subregulation (4), the sum charged as administration costs in respect of a relevant member reporting period against the minimum benefit component of the benefits of a member to whom this regulation applies must not exceed the investment return credited to, or debited against, the member's minimum benefits for that period.
5.17(3)
For subregulation (2) and subject to subregulation (4), a member reporting period for a protected member is a relevant member reporting period if:
(a) the period ends after 30 June 1995; and
(b) at the end of the period, and subject to any adjustment affecting the member's benefits (net of any exit fee) made by the trustee in respect of the period, the member is a protected member.HistoryReg 5.17(3) substituted by SR No 200 of 2002, reg 4 and Sch 2 item 5, effective 29 August 2002. Reg 5.17(3) formerly read:
5.17(3)
For the purposes of subregulation (2) and subject to subregulations (4) and (5), a member reporting period is a relevant member reporting period if:
(a) in the case of a protected member:
(i) at the end of the period, and subject to any adjustment affecting the member's benefits (net of any exit fee) made by the trustee in respect of the period, the member is a protected member; and
(ii) the period ends after 30 June 1995; or
(b) in the case of a lost member:
(i) if the member joins the fund as a lost member - the member is lost at any time in the member reporting period; or
(ii) in any other case, the period is:
(A) the first member reporting period beginning after the relevant time mentioned in subparagraph (1)(b)(i); or
(B) a subsequent member reporting period during a part of which the member remains a lost member.Reg 5.17(3) amended by SR No 317 of 1999 and SR No 159 of 1995.
5.17(4)
For subregulations (2) and (3), if a member reporting period begins before and ends after 1 July 1995, a trustee may treat only the part of that period beginning on 1 July 1995 as being a relevant member reporting period.HistoryReg 5.17(4) amended by SR No 200 of 2002, reg 4 and Sch 2 item 6, by substituting " For subregulations (2) and (3), " for " For the purposes of subregulation (2) and paragraph (3)(a), " , effective 29 August 2002.
5.17(5)
If, under Division 5.6 , a member elects to waive member protection, the last relevant member reporting period in relation to that member is taken to end at the end of the day when, under regulation 5.22 , the member-protection standards cease to apply to the member.HistoryReg 5.17(5) substituted for reg 5.17(5) and (5A) by SR No 200 of 2002, reg 4 and Sch 2 item 7, effective 29 August 2002. Reg 5.17(5) formerly read:
5.17(5)
For the purposes of subregulation (2) and paragraph (3)(b), if a member ceases to be a lost member during a member reporting period, a trustee may treat only the part of that period ending when the member ceases to be a lost member as being a relevant member reporting period.
5.17(5A)
(Repealed by SR No 200 of 2002)HistoryReg 5.17(5) substituted for reg 5.17(5) and (5A) by SR No 200 of 2002, reg 4 and Sch 2 item 7, effective 29 August 2002. Reg 5.17(5A) formerly read:
5.17(5A)
If, under Division 5.6, a member elects to waive member protection, the last relevant member reporting period in relation to that member is taken to end at the end of the day before the day on which, under regulation 5.22, the member-protection standards have only lost-member operation in respect of the member.Reg 5.17(5A) inserted by SR No 159 of 1995.
5.17(6)
Subregulation (2) does not apply to a member (except for a member of a fund that is a capital guaranteed fund within the meaning of the Corporations Regulations 2001 ) if, in a member reporting period:
(a) the total of the administration costs that would be charged to members of a fund but for this regulation is greater than the total investment return that would be credited to or debited against members of the fund but for this regulation in respect of that period; and
(b) the apportionment of those costs between members is carried out in a fair and equitable manner.HistoryReg 5.17(6) amended by SR No 21 of 2002, reg 3 and Sch 1 item 35, effective 11 March 2002, by substituting " the Corporations Regulations 2001 ) " for " subregulation 2.01(1)) " .
Reg 5.17(6) amended by SR No 117 of 1997 and SR No 159 of 1995.
5.17(7)
(Omitted by SR No 159 of 1995)
5.17(8)
For the purposes of this regulation, an exit fee other than an exit fee of an amount equal to the exit fee applicable to the member's benefit at 30 June 1995 is taken to be charged against the relevant member's minimum benefit.
5.17(9)
For the purposes of paragraph (6)(b), an apportionment of costs is taken to be fair and equitable only if:
(a) each member of the fund is charged no more than:
(i) the amount that the member would be charged if all administration costs charged against member's benefits were distributed in direct proportion to:
(A) the investment return credited to, or debited against, the member's benefits; or
(B) the member's benefits; or
(ii) the investment return credited to the member's benefits, plus $10; or
(b) each protected member of the fund is charged no more than an amount equal to the investment return credited to the member's benefits, plus $10.HistoryReg 5.17(9)(b) amended by SR No 200 of 2002, reg 4 and Sch 2 item 8, by omitting " and lost member " after " protected member " in para (b), effective 29 August 2002.
Reg 5.17(9) amended by SR No 384 of 1995; substituted by SR No 159 of 1995.
5.17(10)
For the purposes of this regulation, a member's benefits are taken to be composed wholly of mandated employer-financed benefits except for:
(a) the portion (if any) of the benefits that:
(i) arose in relation to contributions made before 1 July 1995; and
(ii) the trustee reasonably believes are not mandated employer-financed benefits; and
(b) the portion (if any) of the benefits that:
(i) arose in relation to contributions made on or after 1 July 1995; and
(ii) the trustee knows are not mandated employer-financed benefits.HistoryReg 5.17(10) substituted by SR No 384 of 1995.
5.17(11)
Despite anything in this regulation, a trustee of a fund may protect the benefits of a member from an earlier date than this regulation requires.
REGULATION 5.18 COSTS NOT TO BE DEFERREDHistoryReg 5.17 inserted by SR No 64 of 1995.
5.18
If the trustee of a fund would charge costs to a member in respect of a member reporting period but for regulation 5.17 , the trustee must not charge those costs to the member in a future member reporting period, whether in combination with other costs or not.HistoryReg 5.18 amended by SR No 159 of 1995; inserted by SR No 64 of 1995.
Div 5.5 inserted by SR No 64 of 1995.
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