Superannuation Industry (Supervision) Amendment Regulations 2007 (No. 1) (74 of 2007)

Schedule 3   Amendments commencing on 1 July 2007

[64]   Regulation 6.34, including the note

substitute

6.34 Rollover or transfer of withdrawal benefit

General

(1) Subject to regulations 6.35 and 6.38, if a trustee of a regulated superannuation fund or an approved deposit fund receives a request under regulation 6.33, the trustee must roll over or transfer the amount in accordance with the request.

(2) Subject to subregulation (3):

(a) a request to roll over or transfer an amount that is the whole of the member’s withdrawal benefit may be made:

(i) using the form specified in Schedule 2A; or

(ii) in another manner; and

(b) a request to roll over or transfer an amount that is part of the member’s withdrawal benefit may include:

(i) the information that would be required by the form specified in Schedule 2A; and

(ii) any other information that the trustee of the transferring superannuation fund advises the member to be necessary to process the request.

Note The form in Schedule 2A deals with information about tax file numbers that is required in accordance with Part 25A of the Act, and approvals under that Part.

It is recommended that applicants use the form of request in Schedule 2A to allow trustees to roll over or transfer whole balance amounts as quickly and efficiently as possible. Making the request in another way may require a trustee to seek further information from the member under subregulation 6.33 (2).

If subregulation (3) applies, the form of request may need to be supplemented by the documentation mentioned in the applicable subregulation.

(3) In addition to the information that is, or would be, required in accordance with subregulation (2), if:

(a) a request is made by a member ( member 1 ) to roll over or transfer an amount that is the whole or part of the member’s withdrawal benefit to a self managed superannuation fund; and

(b) the trustee of the transferring superannuation fund is aware that:

(i) another request has been made to roll over or transfer an amount to the same self managed superannuation fund; and

(ii) the other request was made by another member who is not a relative of member 1, within the meaning of subsection 17A (9) of the Act; and

(iii) the other request:

(A) has been processed; or

(B) is currently with the trustee of the transferring superannuation fund to be processed;

the trustee may also require member 1 to provide with the request a copy of documentation, complying with the requirements of certification in the form in schedule 2A, that shows that member 1 is a member or trustee of the self managed superannuation fund before the trustee processes member 1’s request.

Examples of documents showing that a member is a member or trustee of a self managed superannuation fund

1 A trust deed.

2 The member’s contribution statement.

3 The annual return of the self managed superannuation fund.

(4) Before the trustee rolls over or transfers an amount, the trustee must be satisfied that the member:

(a) is aware that the member may ask the trustee for information that the member reasonably requires for the purpose of understanding any benefit entitlements that the member may have, including:

(i) information about any fees or charges that may apply to the proposed rollover or transfer; and

(ii) information about the effect of the proposed rollover or transfer on any benefit entitlements the member may have; and

(b) does not require such information.

Note Under section 1017C of the Corporations Act 2001, a trustee of a fund must, on request by a member of the fund, give the member the information and documents mentioned in subsections 1017C (3) and (5). See also regulations 7.9.02, 7.9.45, 7.9.46 and 7.9.83 of the Corporations Regulations 2001.

(5) Subject to subregulations (6) and (7), the trustee must roll over or transfer the amount (or the part of the amount requested to be transferred) as soon as practicable, and in any case within 30 days, after:

(a) the trustee receives a request made under subregulation 6.33 (1); or

(b) if the trustee requires further information - the time when the trustee receives all of the information that would be required in accordance with subregulations 6.33 (2), (3) and (4); or

(c) if there is a suspension under regulation 6.36 or 6.37 - the end of the period of the suspension.

Illiquid investment before 1 July 2007

(6) For an investment that was made before 1 July 2007, a trustee is not required to rollover or transfer the whole amount of a member’s interest in the fund (or the part of the amount requested to be transferred) within the 30 day period mentioned in subregulation (5) if:

(a) any part of the member’s interest was an illiquid investment immediately before 1 July 2007; and

(b) either:

(i) the trustee informs the member, before 1 July 2008, of the nature of the illiquid investment, the impact of the investment on the portability of the member’s interest, and the period within which the investment can be rolled over to another fund; or

(ii) if the member makes a request under regulation 6.33 before the trustee has complied with subparagraph (i) - the trustee informs the member, within 30 days after receiving the request, of the nature of the illiquid investment, the impact of the investment on the portability of the member’s interest, and the period within which the investment can be rolled over to the other fund.

Illiquid investment on or after 1 July 2007

(7) If, on or after 1 July 2007, a member makes an investment choice under regulation 4.02, and the investment strategy chosen is an illiquid investment, the trustee is not required to rollover or transfer the whole of the member’s withdrawal benefit (or a partial amount requested to be transferred) within the 30 day period mentioned in subregulation (5) if the trustee:

(a) informs the member of:

(i) the effect of this subregulation before the member makes the investment choice; and

(ii) the reasons why the investment is illiquid; and

(iii) the maximum period in which a transfer must be effected; and

(b) obtains written consent that the member understands and accepts that a period longer than the 30 days mentioned in subregulation (5) is required (in respect of the whole or part of the requested transfer amount) because of the illiquid nature of the investment.

Note The trustee may effect a rollover or transfer in more than 1 transaction to ensure that only the illiquid investment is rolled over or transferred outside the 30 day period.