Retirement Savings Accounts Amendment Regulations 2007 (No. 1) (104 of 2007)

Schedule 3   Amendments commencing on 1 July 2007

[37]   After Division 4.4

insert

Division 4.4A Compulsory rollover and transfer of benefits in RSAs

4.35 Application of Division 4.4A

This Division applies to all RSAs.

4.35A Operating standards

For subsection 38 (1) of the Act, a requirement set out in this Division is a standard applicable to the operation of RSAs.

4.35B Request form

For this Division:

(a) the form set out in Schedule 2A to the SIS Regulations is adopted with the following modifications as required for the purposes of the Act and these Regulations:

(i) references to a superannuation fund are taken to be references to an RSA institution;

(ii) references to a trustee are taken to be references to an RSA provider;

(iii) references to a member are taken to be references to an RSA holder;

(iv) references to provisions of the SIS Act and the SIS Regulations are taken to be references to the Act and these regulations; and

(b) the form, as adopted, is the request form .

Note The request form deals with information about tax file numbers that is required in accordance with Part 11 of the Act, and approvals under the Act.

It is recommended that applicants use the request form to allow RSA providers to roll over or transfer whole balance amounts as quickly and efficiently as possible. Making the request in another way may require an RSA provider to seek further information from the RSA holder under subregulation 4.35C (2).

If subregulation 4.35D (3) applies, the request may need to be supplemented by the documentation mentioned in that subregulation.

4.35C Request for rollover or transfer of withdrawal benefit

(1) An RSA holder may, in writing, ask the RSA provider to roll over or transfer an amount that is the whole or part of the RSA holder’s benefit.

(2) If the RSA provider requires further information that is mandatory information in the request form (whether or not the request is made using the request form):

(a) the RSA provider must, within 10 working days after receiving the request, ask the RSA holder for the information; and

(b) if the RSA provider has not received the information within 10 working days after making the request, the RSA provider must make reasonable further inquiries of the RSA holder to obtain the information.

Note If a request does not include all of the mandatory information in the request form (whether or not the request is made using the request form) the RSA provider may still roll over or transfer the amount without asking for the rest of the mandatory information.

(3) If the RSA provider requires further information in relation to a request for a partial transfer:

(a) the RSA provider must, within 10 working days after receiving the request, ask the RSA holder for the information; and

(b) if the RSA provider has not received the information within 10 working days after making the request, the RSA provider must make reasonable further inquiries of the RSA holder to obtain the information.

(4) If the RSA provider requires the information under subregulation 4.35D (3):

(a) the RSA provider must, within 10 working days after receiving the request, ask the RSA holder for the information; and

(b) if the RSA provider has not received the information within 10 working days after making the request, the RSA provider must make reasonable further inquiries of the RSA holder to obtain the information.

4.35D Rollover or transfer of benefit

General

(1) Subject to regulation 4.35E, if an RSA provider receives a request under regulation 4.35C, the RSA provider 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 RSA holder’s benefit may be made:

(i) using the request form; or

(ii) in another manner; and

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

(i) the information that would be required by the request form; and

(ii) any other information that the RSA provider of the transferring RSA institution advises the RSA holder to be necessary to process the request.

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

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

(b) the RSA provider of the transferring RSA institution 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 RSA holder who is not a relative, within the meaning of subsection 17A (9) of the SIS Act, of holder 1; and

(iii) the other request:

(A) has been processed; or

(B) is currently with the RSA provider of the transferring RSA institution to be processed;

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

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

1 A trust deed.

2 The RSA holder’s contribution statement.

3 The annual return of the self managed superannuation fund.

(4) Before the RSA provider rolls over or transfers an amount, the RSA provider must be satisfied that the RSA holder:

(a) is aware that the RSA holder may ask the RSA provider for information that the RSA holder reasonably requires for the purpose of understanding any benefit entitlements that the RSA holder 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 RSA holder may have; and

(b) does not require such information.

Note Under section 1017C of the Corporations Act 2001, an RSA provider must, on request by an RSA holder, give the RSA holder the information and documents mentioned in subsections 1017C (3A) and (5). See also regulations 7.9.46 and 7.9.47 of the Corporations Regulations 2001.

(5) The RSA provider 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 RSA provider receives a request made under subregulation 4.35C (1); or

(b) if the RSA provider requires further information - the time when the RSA provider receives all of the information that would be required in accordance with subregulations 4.35C (2), (3) and (4).

4.35E When an RSA provider may refuse to roll over or transfer an amount

(1) An RSA provider may refuse to roll over or transfer an amount under regulation 4.35D if:

(a) the fund or RSA to which the RSA holder has requested the amount is be rolled over or transferred will not accept the amount; or

(b) the amount to be rolled over or transferred is part only of the RSA holder’s interest in the fund, and the effect of rolling over or transferring the amount would be that the RSA holder’s interest in the fund from which the amount is to be rolled over or transferred would be less than $5 000; or

(c) the RSA provider has, under regulation 4.35D, rolled over or transferred an amount of the RSA holder’s interest within 12 months before the request is received.

(2) If an RSA provider refuses to roll over or transfer an amount under subregulation (1), the RSA provider must tell the RSA holder of the refusal in writing.