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This is a Bill, not an Act. For current law, see the Acts databases.


SUPERANNUATION LEGISLATION AMENDMENT (MYSUPER CORE PROVISIONS) BILL 2012

2010-2011
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Superannuation Legislation Amendment
(MySuper Core Provisions) Bill 2011
No. , 2011
(Treasury)
A Bill for an Act to amend the law relating to
superannuation, and for related purposes
i Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 No. ,
2011
Contents
1 Short
title
...........................................................................................
1
2 Commencement
.................................................................................
1
3 Schedule(s)
........................................................................................
2
Schedule 1--MySuper
3
Part 1--Amendments
3
Superannuation Guarantee (Administration) Act 1992
3
Superannuation Industry (Supervision) Act 1993
3
Part 2--Application and transitional provisions
25
Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 No. , 2011
1
A Bill for an Act to amend the law relating to
1
superannuation, and for related purposes
2
The Parliament of Australia enacts:
3
1 Short title
4
This Act may be cited as the Superannuation Legislation
5
Amendment (MySuper Core Provisions) Act 2011.
6
2 Commencement
7
(1) Each provision of this Act specified in column 1 of the table
8
commences, or is taken to have commenced, in accordance with
9
column 2 of the table. Any other statement in column 2 has effect
10
according to its terms.
11
12
2 Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 No.
, 2011
Commencement information
Column 1
Column 2
Column 3
Provision(s)
Commencement
Date/Details
1. Sections 1 to 3
and anything in
this Act not
elsewhere covered
by this table
The day this Act receives the Royal Assent.
2. Schedule 1,
item 1
1 October 2013.
1 October 2013
3. Schedule 1,
items 2 to 13
A single day to be fixed by Proclamation.
However, if the provision(s) do not
commence before 1 January 2013, they
commence on that day.
Note:
This table relates only to the provisions of this Act as originally
1
enacted. It will not be amended to deal with any later amendments of
2
this Act.
3
(2) Any information in column 3 of the table is not part of this Act.
4
Information may be inserted in this column, or information in it
5
may be edited, in any published version of this Act.
6
3 Schedule(s)
7
Each Act that is specified in a Schedule to this Act is amended or
8
repealed as set out in the applicable items in the Schedule
9
concerned, and any other item in a Schedule to this Act has effect
10
according to its terms.
11
12
MySuper Schedule 1
Amendments Part 1
Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 No. , 2011
3
Schedule 1--MySuper
1
Part 1--Amendments
2
Superannuation Guarantee (Administration) Act 1992
3
1 Paragraph 32C(2)(c)
4
Repeal the paragraph, substitute:
5
(c) a class of beneficial interest in the fund is a MySuper product
6
within the meaning of the Superannuation Industry
7
(Supervision) Act 1993; and
8
(d) the fund complies with the requirements (if any) set out in the
9
regulations in relation to offering insurance in respect of
10
death.
11
Superannuation Industry (Supervision) Act 1993
12
2 Section 4 (after table item dealing with Part No. 2B)
13
Insert:
14
2C MySuper
3 Subparagraph 6(1)(a)(i)
15
Repeal the subparagraph, substitute:
16
(i) Parts 2A, 2B and 2C;
17
4 Subsection 10(1)
18
Insert:
19
choice product: A class of beneficial interest in a regulated
20
superannuation fund is a choice product if it is not a MySuper
21
product.
22
5 Subsection 10(1)
23
Insert:
24
fees rules, in relation to MySuper products, means the rules in
25
Division 5 of Part 2C.
26
6 Subsection 10(1)
27
Schedule 1 MySuper
Part 1 Amendments
4 Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 No.
, 2011
Insert:
1
MySuper product: A class of beneficial interest in a regulated
2
superannuation fund is a MySuper product if an RSE licensee is
3
authorised under section 29T to offer that class of beneficial
4
interest in the fund as a MySuper product.
5
7 Subsection 10(1) (after paragraph (do) of the definition of
6
reviewable decision)
7
Insert:
8
(doa) a decision of APRA under subsection 29T(2) to refuse to
9
authorise an RSE licensee to offer a class of beneficial
10
interest in a regulated superannuation fund as a MySuper
11
product; or
12
(dob) a decision of APRA under subsection 29U(1) to cancel an
13
authority to offer a class of beneficial interest in a regulated
14
superannuation fund as a MySuper product; or
15
8 After subsection 29E(6)
16
Insert:
17
RSE licensees authorised to offer MySuper products
18
(6A) The following additional conditions are imposed on each RSE
19
licensee that is authorised to offer a class of beneficial interest in a
20
regulated superannuation fund as a MySuper product:
21
(a) the RSE licensee must ensure that the governing rules of the
22
fund are not varied so that section 29TC is no longer satisfied
23
in relation to that class of interest;
24
(b) the RSE licensee must ensure that the governing rules of the
25
fund relating to that class of interest are not contravened.
26
9 After Part 2B
27
Insert:
28
MySuper Schedule 1
Amendments Part 1
Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 No. , 2011
5
Part 2C--MySuper
1
Division 1--Object of this Part
2
29R Object of this Part
3
(1) It is intended that all MySuper products will be simple products
4
sharing common characteristics.
5
(2) The object of this Part is to ensure that a class of beneficial interest
6
in a regulated superannuation fund is not offered as a MySuper
7
product unless it has those characteristics.
8
(3) This is done by requiring the RSE licensee of a regulated
9
superannuation fund to obtain authority from APRA before
10
offering a class of beneficial interest in the fund as a MySuper
11
product.
12
(4) The ability of an RSE licensee to offer a MySuper product is
13
significant for the purposes of the Superannuation Guarantee
14
(Administration) Act 1992. Under that Act, employers will need to
15
pay contributions for an employee who has no chosen fund into a
16
fund that offers a MySuper product, in order to meet the choice of
17
fund requirements and so avoid an increased individual
18
superannuation guarantee shortfall for the employee.
19
Division 2--Applying for authority
20
29S Application for authority to offer a MySuper product
21
Who may apply?
22
(1) An RSE licensee may apply to APRA for authority to offer a class
23
of beneficial interest in a regulated superannuation fund as a
24
MySuper product.
25
Requirements for applications
26
(2) An application for authority to offer a class of beneficial interest in
27
a regulated superannuation fund as a MySuper product must:
28
(a) be in the approved form; and
29
(b) contain the information required by the approved form; and
30
Schedule 1 MySuper
Part 1 Amendments
6 Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 No.
, 2011
(c) state the RSE licensee's and the fund's ABNs; and
1
(d) be accompanied by an up-to-date copy of the trust deed by
2
which the fund is constituted (except to the extent that the
3
trust deed is constituted by governing rules of the fund); and
4
(e) be accompanied by an up-to-date copy of the governing rules
5
of the fund (except to the extent that the governing rules are
6
constituted by the law of the Commonwealth or by unwritten
7
rules).
8
Notifying certain changes while applications are pending
9
(3)
If:
10
(a) an RSE licensee applies for authority to offer a class of
11
beneficial interest in a regulated superannuation fund as a
12
MySuper product; and
13
(b) after the application is made but before APRA decides the
14
application, the trust deed (other than the governing rules of
15
the fund) by which the fund is constituted is varied or
16
revoked and replaced;
17
the RSE licensee must lodge an up-to-date copy of the trust deed
18
with APRA as soon as practicable after the trust deed is varied or
19
revoked and replaced.
20
(4)
If:
21
(a) an RSE licensee applies for authority to offer a class of
22
beneficial interest in a regulated superannuation fund as a
23
MySuper product; and
24
(b) after the application is made but before APRA decides the
25
application, any governing rules of the fund (that are not
26
constituted by the law of the Commonwealth or by unwritten
27
rules) are varied or revoked and replaced;
28
the RSE licensee must lodge an up-to-date copy of the governing
29
rules (that are not constituted by the law of the Commonwealth or
30
by unwritten rules) with APRA as soon as practicable after the
31
governing rules are varied or revoked and replaced.
32
(5)
If:
33
(a) an RSE licensee applies for authority to offer a class of
34
beneficial interest in a regulated superannuation fund as a
35
MySuper product; and
36
MySuper Schedule 1
Amendments Part 1
Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 No. , 2011
7
(b) after the application is made, but before APRA decides the
1
application, information contained in the application ceases
2
to be correct;
3
the RSE licensee must give APRA the correct information, in
4
writing, as soon as practicable after the information in the
5
application ceases to be correct.
6
(6) An application is taken not to comply with this section if
7
subsection (3), (4) or (5) is contravened.
8
Note:
APRA cannot give authority to offer a class of beneficial interest in
9
the fund as a MySuper product while the application does not comply
10
with this section: see paragraph 29T(1)(a).
11
Lapsed applications
12
(7) An application for authority lapses if:
13
(a) it was made by an RSE licensee; and
14
(b) the RSE licensee ceases to be an RSE licensee before:
15
(i) APRA makes a decision on the application for
16
authority; or
17
(ii) if APRA's decision with respect to the application is
18
subject to review under this Act--the review is finally
19
determined or otherwise disposed of.
20
29SA APRA may request further information
21
APRA may give an RSE licensee that has applied for authority to
22
offer a class of beneficial interest in a regulated superannuation
23
fund as a MySuper product a notice requesting the RSE licensee to
24
give APRA, in writing, specified information relating to the
25
application.
26
Note:
A failure to give the requested information delays the time within
27
which APRA must decide the application: see paragraph 29SB(1)(b).
28
29SB Period for deciding applications for authority
29
(1) APRA must decide an application by an RSE licensee for authority
30
to offer a class of beneficial interest in a regulated superannuation
31
fund as a MySuper product:
32
(a) within 60 days after receiving the application; or
33
Schedule 1 MySuper
Part 1 Amendments
8 Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 No.
, 2011
(b) if the applicant was requested to provide information under
1
section 29SA--within 60 days after:
2
(i) receiving from the RSE licensee all of the information
3
the RSE licensee was requested to provide under that
4
section; or
5
(ii) all notices relating to that information being disposed
6
of;
7
unless APRA extends the period for deciding the application under
8
subsection (2).
9
(2) APRA may extend the period for deciding an application by an
10
RSE licensee for authority to offer a class of beneficial interest in a
11
regulated superannuation fund as a MySuper product by up to 60
12
days if APRA informs the RSE licensee of the extension:
13
(a) in writing; and
14
(b) within the period in which it would otherwise be required to
15
decide the application under subsection (1).
16
(3) If APRA extends the period for deciding an application for
17
authority to offer a class of beneficial interest in a regulated
18
superannuation fund as a MySuper product, it must decide the
19
application within the extended period.
20
(4) If APRA has not decided an application for authority to offer a
21
class of beneficial interest in a regulated superannuation fund as a
22
MySuper product by the end of the period by which it is required
23
to decide the application, APRA is taken to have decided, at the
24
end of the last day of that period, to refuse the application.
25
Division 3--Authority
26
29T Authority to offer a MySuper product
27
(1) APRA must authorise an RSE licensee to offer a class of beneficial
28
interest in a regulated superannuation fund as a MySuper product
29
if, and only if:
30
(a) the application for authority complies with section 29S; and
31
(b) the applicant has provided to APRA all information that the
32
applicant was requested, under section 29SA, to provide, or
33
the request has been disposed of; and
34
(c) the fund is registered under Part 2B; and
35
MySuper Schedule 1
Amendments Part 1
Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 No. , 2011
9
(d)
either:
1
(i) the fund has 5 or more members; or
2
(ii) APRA is satisfied that the fund will, if authority is
3
given, have 5 or more members within a period
4
specified in the authority; and
5
(e) the fund is not an eligible rollover fund (within the meaning
6
of Part 24); and
7
(f) one of the following subparagraphs applies:
8
(i) the licensee is not already authorised to offer another
9
class of beneficial interest in the fund as a MySuper
10
product;
11
(ii) the licensee is already authorised to offer another class
12
of beneficial interest in the fund as a MySuper product,
13
but section 29TA or 29TB is satisfied, in relation to the
14
class of beneficial interest in the fund to which the
15
application relates, at the time APRA gives authority;
16
(iii) the licensee is already authorised to offer another class
17
of beneficial interest in the fund as a MySuper product,
18
but section 29TA or 29TB was satisfied in relation to
19
each class of beneficial interest that the RSE licensee is
20
already authorised to offer as a MySuper product, at the
21
time APRA gave that earlier authority; and
22
(g) APRA is satisfied that section 29TC is satisfied in relation to
23
that class of beneficial interest; and
24
(h) APRA is satisfied that:
25
(i) where the RSE licensee is a body corporate--the RSE
26
licensee; or
27
(ii) where the RSE licensee is made up of a group of
28
individual trustees--each of those individual trustees;
29
is likely to comply with the enhanced trustee obligations for
30
MySuper products; and
31
(i) APRA is satisfied that:
32
(i) where the RSE licensee is a body corporate--the RSE
33
licensee; or
34
(ii) where the RSE licensee is made up of a group of
35
individual trustees--each of those individual trustees;
36
is likely to comply with the fees rules in relation to MySuper
37
products; and
38
Schedule 1 MySuper
Part 1 Amendments
10 Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 No.
, 2011
(j) APRA is satisfied that the RSE licensee is not likely to
1
contravene section 29W or 29WA.
2
(2) Otherwise APRA must refuse to give the authority.
3
29TA Product in another fund in which there is already material
4
goodwill
5
This section is satisfied in relation to a class of beneficial interest
6
in a regulated superannuation fund (the proposed MySuper
7
product) if:
8
(a) the benefits of members and beneficiaries in another
9
regulated superannuation fund (the original fund) are to be
10
transferred to the fund; and
11
(b) APRA is satisfied that:
12
(i) some or all of the persons whose benefits are to be
13
transferred hold a class of interest in the original fund
14
that is similar to the proposed MySuper product; and
15
(ii) there is material goodwill in that class of interest in the
16
original fund; and
17
(iii) that goodwill could not be maintained unless the RSE
18
licensee were authorised to offer the proposed MySuper
19
product as an additional MySuper product in the fund;
20
and
21
(iv) it would be in the best interests of the members of the
22
fund, and those persons whose benefits are to be
23
transferred to the fund, to maintain the distinction
24
between the proposed MySuper product and other
25
MySuper products within the fund.
26
29TB MySuper products for large employers
27
(1) This section is satisfied in relation to a class of beneficial interest
28
in a regulated superannuation fund if:
29
(a) under the governing rules of the fund, one employer is
30
specified as a large employer in relation to the fund who is
31
relevant to that class of beneficial interest; and
32
(b)
either:
33
(i) that employer is a large employer in relation to the fund
34
(see subsection (2)); or
35
MySuper Schedule 1
Amendments Part 1
Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 No. , 2011
11
(ii) APRA is satisfied that, if authority to offer the class of
1
beneficial interest in the fund as a MySuper product is
2
given, that employer will be a large employer in relation
3
to the fund by the end of the period specified in the
4
authority; and
5
(c) under the governing rules of the fund, a person is not entitled
6
to hold an interest of that class in the fund unless the person
7
is:
8
(i) an employee or a former employee of the large
9
employer; or
10
(ii) an employee or a former employee of an associate of the
11
large employer; or
12
(iii) a relative or dependant of an employee or a former
13
employee mentioned in subparagraph (i) or (ii); and
14
(d) under the governing rules of the fund:
15
(i) where the large employer or an associate of the large
16
employer contributes to the fund or would, apart from a
17
temporary cessation of contributions, contribute to the
18
fund for an employee of the large employer, any
19
employee of the large employer may hold an interest of
20
that class in the fund; and
21
(ii) where the large employer or an associate of the large
22
employer contributes to the fund or would, apart from a
23
temporary cessation of contributions, contribute to the
24
fund for an employee of an associate of the large
25
employer, any employee of that associate may hold an
26
interest of that class in the fund.
27
(2) An employer is a large employer in relation to a regulated
28
superannuation fund if there are 500 or more members of the fund
29
who are any of the following:
30
(a) a member of the fund:
31
(i) who is an employee of the employer; and
32
(ii) in relation to whom the employer or an associate of the
33
employer contributes to the fund or would, apart from a
34
temporary cessation of contributions, contribute to the
35
fund;
36
(b) a member of the fund:
37
(i) who is an employee of an associate of the employer; and
38
Schedule 1 MySuper
Part 1 Amendments
12 Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 No.
, 2011
(ii) in relation to whom either the employer or an associate
1
of the employer contributes to the fund or would, apart
2
from a temporary cessation of contributions, contribute
3
to the fund.
4
29TC Characteristics of a MySuper product
5
(1) This section is satisfied in relation to a class of beneficial interest
6
in a regulated superannuation fund if, under the governing rules of
7
the fund:
8
(a) a single diversified investment strategy is to be adopted in
9
relation to assets of the fund, to the extent that they are
10
attributed to that class of beneficial interest in the fund; and
11
(b) all members who hold a beneficial interest of that class in the
12
fund are entitled to access the same options, benefits and
13
facilities; and
14
(c) amounts are attributed to members in relation to their
15
beneficial interest of that class in the fund in a way that does
16
not stream gains or losses that relate to any assets of the fund
17
to only some of those members, except to the extent
18
permitted under a lifecycle exception (see subsection (2));
19
and
20
(d) the same process is to be adopted in attributing amounts to
21
members in relation to their beneficial interest of that class in
22
the fund, except to the extent that a different process is
23
necessary to allow for fee subsidisation by employers; and
24
(e) if fee subsidisation by employers is permitted, that
25
subsidisation does not favour one member who holds a
26
beneficial interest of that class in the fund and is an employee
27
of a subsidising employer over another such member who is
28
an employee of that employer; and
29
(f) the only limitations imposed on the source or kind of
30
contributions made by or on behalf of persons who hold a
31
beneficial interest of that class in the fund are those permitted
32
under subsection (3); and
33
(g) a beneficial interest of that class in the fund cannot be
34
replaced with a beneficial interest of another class in the fund
35
unless:
36
(i) the replacement is with an interest in another MySuper
37
product within the fund; or
38
MySuper Schedule 1
Amendments Part 1
Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 No. , 2011
13
(ii) the person who holds the interest consents in writing to
1
that replacement; and
2
(h) a beneficial interest of that class in the fund (the old interest)
3
cannot be replaced with a beneficial interest (the new
4
interest) in another superannuation entity unless:
5
(i) the new interest is a MySuper product and the
6
replacement with the new interest is permitted under a
7
law of the Commonwealth; or
8
(ii) the replacement is otherwise permitted, or is required,
9
under a law of the Commonwealth; or
10
(iii) the person who holds the old interest consents in writing
11
to the replacement with the new interest; and
12
(i) to the extent that assets of the fund are attributed to beneficial
13
interests of that class, a pension is not payable out of those
14
assets by the trustee, or trustees, of the fund on the
15
satisfaction of a condition of release of benefits specified in a
16
standard made under paragraph 31(2)(h) by a person who
17
holds a beneficial interest of that class, unless the payment is
18
derived from a benefit of the kind mentioned in subparagraph
19
62(1)(b)(ii) provided to the fund by an insurer.
20
Note: Subparagraph
62(1)(b)(ii)
is
about benefits payable when a
21
person ceases work due to ill-health.
22
(2)
A
lifecycle exception is a rule under the governing rules of the
23
fund that allows gains and losses from different classes of asset of
24
the fund to be streamed to different subclasses of the members of
25
the fund who hold a MySuper product:
26
(a) on the basis, and only on the basis, of the age of those
27
members; or
28
(b) on the basis of the age of those members and other prescribed
29
factors; or
30
(c) on the basis of the age of those members and other prescribed
31
factors in prescribed circumstances.
32
(3) A limitation on the source or kind of contributions made by or on
33
behalf of persons who hold a beneficial interest of a particular class
34
in a regulated superannuation fund is permitted for the purposes of
35
paragraph (1)(f) if:
36
(a) the limitation is of a prescribed kind; or
37
Schedule 1 MySuper
Part 1 Amendments
14 Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 No.
, 2011
(b) the limitation is imposed by or under the general law or
1
another law of the Commonwealth.
2
29TD Notice of authority
3
If APRA authorises an RSE licensee to offer a class of beneficial
4
interest in a regulated superannuation fund as a MySuper product,
5
APRA must notify the RSE licensee in writing of the authority.
6
29TE APRA to give notice of refusal of authority
7
If APRA refuses an application by an RSE licensee for authority to
8
offer a class of beneficial interest in a regulated superannuation
9
fund as a MySuper product, APRA must take all reasonable steps
10
to ensure that the RSE licensee is given a notice:
11
(a) informing it of APRA's refusal of the application; and
12
(b) setting out the reasons for the refusal;
13
as soon as practicable after refusing the application.
14
Division 4--Cancelling authority
15
29U Cancelling authority to offer MySuper product
16
(1) APRA may, in writing, cancel an authority to offer a class of
17
beneficial interest in a regulated superannuation fund as a MySuper
18
product.
19
(2) Without limiting subsection (1), APRA may cancel an authority to
20
offer a class of beneficial interest in a regulated superannuation
21
fund as a MySuper product if:
22
(a) APRA is no longer satisfied that section 29TC is satisfied in
23
relation to that class of beneficial interest in the fund; or
24
(b) the RSE licensee was authorised to offer that class of
25
beneficial interest in the fund as a MySuper product because
26
section 29TB was satisfied in relation to the class and either:
27
(i) in a case where that section was satisfied because
28
APRA was satisfied that an employer would be a large
29
employer by the end of a period specified in the
30
authority--the employer was not a large employer at
31
that time; or
32
MySuper Schedule 1
Amendments Part 1
Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 No. , 2011
15
(ii) in any case--that section was no longer satisfied in
1
relation to the class on the last day of the immediately
2
preceding year of income; or
3
(c) APRA is no longer satisfied that:
4
(i) where the RSE licensee is a body corporate--the RSE
5
licensee; or
6
(ii) where the RSE licensee is made up of a group of
7
individual trustees--each of those individual trustees;
8
is likely to comply with the enhanced trustee obligations for
9
MySuper products (whether because of a previous failure to
10
do so, or for any other reason); or
11
(d) APRA is no longer satisfied that:
12
(i) where the RSE licensee is a body corporate--the RSE
13
licensee; or
14
(ii) where the RSE licensee is made up of a group of
15
individual trustees--each of those individual trustees;
16
is likely to comply with the fees rules in relation to MySuper
17
products (whether because of a previous failure to do so, or
18
for any other reason); or
19
(e) APRA is no longer satisfied that the RSE licensee is not
20
likely to contravene section 29W or 29WA (whether because
21
of a previous contravention of that section, or for any other
22
reason); or
23
(f) the fund ceases to be registered under Part 2B; or
24
(g)
either:
25
(i) in a case where authority was given to offer the class of
26
beneficial interest in the fund as a MySuper product on
27
the basis that the fund would have 5 or more members
28
within a period specified in the authority--the fund does
29
not have 5 or more members at the end of that period; or
30
(ii) in any case--the fund has ceased to have 5 or more
31
members; or
32
(h) paragraph 29T(1)(e) is no longer satisfied in relation to the
33
fund (no longer an eligible rollover fund); or
34
(i) APRA is satisfied that:
35
(i) where the RSE licensee is a body corporate--the RSE
36
licensee; or
37
(ii) where the RSE licensee is made up of a group of
38
individual trustees--one of those individual trustees;
39
Schedule 1 MySuper
Part 1 Amendments
16 Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 No.
, 2011
has contravened a provision of the governing rules of the
1
fund relating to the MySuper product.
2
(3) If APRA cancels an authority to offer a class of beneficial interest
3
in a regulated superannuation fund as a MySuper product it must
4
take all reasonable steps to ensure that the RSE licensee is given a
5
notice informing the RSE licensee:
6
(a) that APRA has cancelled the authority; and
7
(b) of the reasons for the cancellation.
8
29UA Cancellation of authority of an RSE licensee that is also a
9
financial services licensee
10
(1) Before cancelling an authority of an RSE licensee that is also a
11
financial services licensee, APRA must consult ASIC if, in
12
APRA's opinion, the cancellation might reasonably be expected to
13
affect the RSE licensee's ability to provide one or more of the
14
financial services (within the meaning of the Corporations Act
15
2001) that the RSE licensee provides.
16
(2) If APRA cancels the authority of an RSE licensee that is also a
17
financial services licensee, APRA must inform ASIC of the
18
cancellation within one week after the cancellation.
19
(3) A failure to comply with a requirement of this section does not
20
invalidate the cancellation of an authority to offer a class of
21
beneficial interest in a regulated superannuation fund as a MySuper
22
product.
23
29UB APRA may allow authority to continue in effect
24
In a notice that APRA gives to an RSE licensee cancelling an
25
authority, APRA may specify that the authority continues in effect
26
as though the cancellation had not happened for the purposes of:
27
(a) a specified provision, administered by APRA, of this Act or
28
the regulations; or
29
(b) a specified provision, administered by APRA, of any other
30
law of the Commonwealth;
31
in relation to specified matters, a specified period, or both.
32
MySuper Schedule 1
Amendments Part 1
Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 No. , 2011
17
Division 5--Fees rules for MySuper products
1
29V Fees that may be charged in relation to a MySuper product
2
(1) The trustee, or the trustees, of a regulated superannuation fund that
3
offers a MySuper product may only charge fees of one or more of
4
the following kinds in relation to that product:
5
(a) an administration fee;
6
(b) an investment fee;
7
(c) a buy-sell spread;
8
(d) a switching fee;
9
(e) an exit fee;
10
(f) an activity fee.
11
(2)
An
administration fee is a fee that relates to the administration or
12
operation of the fund and includes costs incurred by the trustee, or
13
the trustees, of the fund (that are not otherwise charged as an
14
investment fee, a buy-sell spread, a switching fee, an exit fee or an
15
activity fee).
16
(3)
An
investment fee is a fee that relates to the investment of the
17
assets of the fund and includes:
18
(a) fees in payment for the exercise of care and expertise in the
19
investment of those assets (including performance fees); and
20
(b) costs incurred by the trustee, or the trustees, of the fund (that
21
are not otherwise charged as an administration fee, a buy-sell
22
spread, a switching fee, an exit fee or an activity fee).
23
(4)
A
buy-sell spread is a fee to recover transaction costs incurred by
24
the trustee, or the trustees, in relation to the sale and purchase of
25
assets of the fund.
26
(5)
A
switching fee is a fee to recover the costs of switching all or part
27
of members' interests within the fund:
28
(a) from a MySuper product in the fund to a MySuper product in
29
the fund; or
30
(b) from a MySuper product in the fund to a choice product in
31
the fund; or
32
(c) from a choice product in the fund to a MySuper product in
33
the fund; or
34
Schedule 1 MySuper
Part 1 Amendments
18 Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 No.
, 2011
(d) from a choice product in the fund to a choice product in the
1
fund.
2
(6)
An
exit fee is a fee to recover the costs of disposing of all or part of
3
members' interests in the fund.
4
(7)
An
activity fee is a fee that relates to the costs incurred by the
5
trustee, or the trustees, of the fund that:
6
(a) are directly related to an activity of the trustee, or the
7
trustees:
8
(i) that is engaged in at the request, or with the consent, of
9
a member; or
10
(ii) that relates to a member and is required by law; and
11
(b) are not otherwise charged as an administration fee, an
12
investment fee, a buy-sell spread, a switching fee or an exit
13
fee.
14
29VA Charging rules
15
(1) The trustee, or the trustees, of a regulated superannuation fund that
16
offers a MySuper product may only charge a fee during a period if
17
it satisfies one of the charging rules set out in this section in
18
relation to that period.
19
All MySuper members charged same flat fee
20
(2) This rule is satisfied if:
21
(a) the fee is charged in relation to all members of the fund who
22
hold the MySuper product; and
23
(b) the amount of the fee is the same for each of those members.
24
All MySuper members charged same percentage of account
25
balance
26
(3) This rule is satisfied if:
27
(a) the fee is charged in relation to all members of the fund who
28
hold the MySuper product; and
29
(b) the amount of the fee charged in relation to one member is a
30
percentage of so much of the member's account balance with
31
the fund that relates to the MySuper product; and
32
MySuper Schedule 1
Amendments Part 1
Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 No. , 2011
19
(c) the amount of the fee charged in relation to each other
1
member of the fund who holds the MySuper product is the
2
same percentage of so much of that member's account
3
balance with the fund that relates to the MySuper product.
4
All MySuper members charged combination of same flat fee and
5
same percentage of account balance
6
(4) This rule is satisfied if:
7
(a) the fee is charged in relation to all members of the fund who
8
hold the MySuper product; and
9
(b) the amount of the fee charged in relation to one member is
10
the sum of a fixed amount (the flat fee) and another amount
11
that is a percentage of so much of the member's account
12
balance with the fund that relates to the MySuper product;
13
and
14
(c) the amount of the fee charged in relation to each other
15
member of the fund who holds the MySuper product is the
16
sum of the flat fee and the same percentage of so much of
17
that member's account balance with the fund that relates to
18
the MySuper product.
19
All MySuper members to whom action relates charged same flat
20
fee
21
(5) This rule is satisfied if:
22
(a) the fee is a buy-sell spread, a switching fee, an exit fee or an
23
activity fee; and
24
(b) the fee is only charged in relation to those members of the
25
fund:
26
(i) who hold the MySuper product; and
27
(ii) in relation to whom a relevant action is taken by the
28
trustee or trustees of the fund; and
29
(c) the amount of the fee charged is the same for each member to
30
whom it is charged.
31
All MySuper members to whom action relates charged same
32
percentage of account balance
33
(6) This rule is satisfied if:
34
Schedule 1 MySuper
Part 1 Amendments
20 Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 No.
, 2011
(a) the fee is a buy-sell spread, a switching fee, an exit fee or an
1
activity fee; and
2
(b) the fee is only charged in relation to those members of the
3
fund:
4
(i) who hold the MySuper product; and
5
(ii) in relation to whom a relevant action is taken by the
6
trustee or trustees of the fund; and
7
(c) the amount of the fee charged in relation to one of those
8
members is a percentage of so much of the member's account
9
balance with the fund:
10
(i) that relates to the MySuper product; and
11
(ii) in relation to which the relevant action is taken; and
12
(d) the amount of the fee charged in relation to each of the other
13
of those members is the same percentage of so much of that
14
member's account balance with the fund:
15
(i) that relates to the MySuper product; and
16
(ii) in relation to which the relevant action is taken.
17
All MySuper members to whom action relates charged combination
18
of same flat fee and same percentage of account balance
19
(7) This rule is satisfied if:
20
(a) the fee is a buy-sell spread, a switching fee, an exit fee or an
21
activity fee; and
22
(b) the fee is only charged in relation to those members of the
23
fund:
24
(i) who hold the MySuper product; and
25
(ii) in relation to whom a relevant action is taken by the
26
trustee or trustees of the fund; and
27
(c) the amount of the fee charged in relation to one of those
28
members is the sum of a fixed amount (the flat fee) and
29
another amount that is a percentage of so much of the
30
member's account balance with the fund:
31
(i) that relates to the MySuper product; and
32
(ii) in relation to which the relevant action is taken; and
33
(d) the amount of the fee charged in relation to each of the other
34
of those members is the sum of the flat fee and the same
35
percentage of so much of that member's account balance
36
with the fund:
37
MySuper Schedule 1
Amendments Part 1
Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 No. , 2011
21
(i) that relates to the MySuper product; and
1
(ii) in relation to which the relevant action is taken.
2
Administration fee exemption for employees of an
3
employer-sponsor
4
(8) The fee is an administration fee charged in accordance with the
5
administration fee exemption for employees of an
6
employer-sponsor (see section 29VB).
7
Note: In
some
circumstances,
the
RSE licensee may wish to offer a
8
MySuper product for the employees of a large employer or its
9
associates (see sections 29T and 29TB). Any fee set for that MySuper
10
product may differ from the equivalent fee set for another MySuper
11
product within the fund. In other circumstances, a separate MySuper
12
product may not be offered, but instead a lower administration fee
13
charged to the employees of a particular employer-sponsor (see
14
section 29VB).
15
29VB Administration fee exemption for employees of an
16
employer-sponsor
17
(1) An administration fee charged to members of a regulated
18
superannuation fund who hold a MySuper product is charged in
19
accordance with the administration fee exemption for employees
20
of an employer-sponsor if:
21
(a) the fee is charged in relation to all members of the fund who
22
hold the MySuper product; and
23
(b) an employer-sponsor contributes to the fund or would, apart
24
from a temporary cessation of contributions, contribute to the
25
fund for the benefit of one or more members of the fund (the
26
employee members) who hold the MySuper product and who
27
are:
28
(i) employees of the employer-sponsor, or an associate of
29
the employer-sponsor; or
30
(ii) the relatives or dependants of those employees; and
31
(c) the trustee, or the trustees, of the fund have entered into an
32
arrangement with the employer-sponsor that secures lower
33
administration fees for the employee members; and
34
(d) the fee is in accordance with one of the following
35
subsections.
36
Schedule 1 MySuper
Part 1 Amendments
22 Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 No.
, 2011
All employees charged same flat fee
1
(2) The amount of the administration fee is the same for each of the
2
employee members.
3
All employees charged same percentage of account balance
4
(3) Each of the following is satisfied:
5
(a) the amount of the administration fee charged in relation to
6
one of the employee members is a percentage of so much of
7
the member's account balance with the fund that relates to
8
the MySuper product;
9
(b) the amount of the administration fee charged in relation to
10
each of the other employee members is the same percentage
11
of so much of that member's account balance with the fund
12
that relates to the MySuper product.
13
All employees charged combination of same flat fee and same
14
percentage of account balance
15
(4) Each of the following is satisfied:
16
(a) the amount of the administration fee charged in relation to
17
one of the employee members is the sum of a fixed amount
18
(the flat fee) and another amount that is a percentage of so
19
much of the member's account balance with the fund that
20
relates to the MySuper product;
21
(b) the amount of the administration fee charged in relation to
22
each of the other employee members is the sum of the flat fee
23
and the same percentage of so much of that member's
24
account balance with that fund that relates to the MySuper
25
product.
26
Division 6--Offences
27
29W Offering a product as a MySuper product when not authorised
28
to do so
29
(1) A person commits an offence if:
30
(a) the person makes a representation; and
31
(b) the representation is that a class of beneficial interest in a
32
regulated superannuation fund is a MySuper product; and
33
MySuper Schedule 1
Amendments Part 1
Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 No. , 2011
23
(c) the RSE licensee for the fund does not have authority to offer
1
a beneficial interest of that class in the fund as a MySuper
2
product.
3
Penalty: 60 penalty units.
4
Note:
Chapter 2 of the Criminal Code sets out the general principles of
5
criminal responsibility and Part IA of the Crimes Act 1914 contains
6
provisions dealing with penalties.
7
(2) Subsection (1) is an offence of strict liability.
8
Note:
For strict liability, see section 6.1 of the Criminal Code.
9
29WA Contributions in relation to which no election is made are to
10
be paid into MySuper product
11
(1) This section applies if:
12
(a) a person is a member of a regulated superannuation fund; and
13
(b) a contribution to the fund is made for the benefit of the
14
person; and
15
(c)
either:
16
(i) the person has not given the trustee, or the trustees, of
17
the fund an election in writing that the contribution is to
18
be paid into a specified choice product, or choice
19
products; or
20
(ii) the person has given the trustee, or the trustees, of the
21
fund an election in writing to have some of the
22
contribution paid into a specified choice product, or
23
choice products, but no such election has been made in
24
relation to the remainder of the contribution.
25
(2) The trustee, or trustees, of the fund must treat any contribution to
26
the fund in relation to which no election has been made, and any
27
part of a contribution to the fund in relation to which no election
28
has been made, as a contribution to be paid into a MySuper product
29
of the fund.
30
(3) A trustee commits an offence if the trustee contravenes
31
subsection (2). This is an offence of strict liability.
32
Penalty: 50 penalty units.
33
Schedule 1 MySuper
Part 1 Amendments
24 Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 No.
, 2011
Note 1:
Chapter 2 of the Criminal Code sets out the general principles of
1
criminal responsibility and Part IA of the Crimes Act 1914 contains
2
provisions dealing with penalties.
3
Note 2:
For strict liability, see section 6.1 of the Criminal Code.
4
5
MySuper Schedule 1
Application and transitional provisions Part 2
Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 No. , 2011
25
Part 2--Application and transitional provisions
1
10 Definitions
2
In this Part:
3
SG Act means the Superannuation Guarantee (Administration) Act
4
1992.
5
SIS Act means the Superannuation Industry (Supervision) Act 1993.
6
11 Authority to offer a MySuper product given before 1 July
7
2013
8
If, before 1 July 2013, APRA authorises an RSE licensee to offer a class
9
of beneficial interest in a regulated superannuation fund as a MySuper
10
product, that authority takes effect on 1 July 2013.
11
12 Applications for authority to offer a MySuper product for a
12
large employer
13
(1)
This item applies if:
14
(a) an RSE licensee makes an application to APRA before 1 July
15
2013 under section 29S of the SIS Act for authority to offer a
16
class of beneficial interest in a regulated superannuation fund
17
as a MySuper product; and
18
(b) the application is made on the basis that the class of interest
19
is one in relation to which section 29TB of the SIS Act is
20
satisfied.
21
(2)
Section 29SB of the SIS Act (period for considering the application)
22
applies as if:
23
(a) the application were received on 1 July 2013; and
24
(b) the references in paragraphs (1)(a) and (b) of that section to
25
"60 days" were instead references to "120 days".
26
(3)
Section 29WA of the SIS Act (contributions in relation to which no
27
election made) does not apply in relation to a contribution if:
28
(a) the contribution is made during the period in which APRA
29
decides the application (see section 29SB of the SIS Act);
30
and
31
(b) the contribution is paid into the class of beneficial interest to
32
which the application relates.
33
Schedule 1 MySuper
Part 2 Application and transitional provisions
26 Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 No.
, 2011
(4)
On and after 1 October 2013, a contribution to the fund is taken to
1
satisfy paragraph 32C(2)(c) of the SG Act (employer's superannuation
2
guarantee obligation) if the contribution is made during the period in
3
which APRA decides the application (see section 29SB of the SIS Act).
4
(5)
If APRA refuses the application, then:
5
(a) a contribution to the fund made on or after 1 October 2013 is
6
taken to satisfy paragraph 32C(2)(c) of the SG Act, provided
7
it is made before the end of the grace period; and
8
(b) section 29WA of the SIS Act does not apply in relation to a
9
contribution to the fund made on or after 1 October 2013,
10
provided it is paid into the class of beneficial interest to
11
which the application relates before the end of the grace
12
period.
13
(6)
For the purposes of subitem (5), the grace period is a period of 3
14
months beginning on the day on which APRA refuses the application.
15
13 Contributions in relation to which no election made
16
Section 29WA of the SIS Act applies to contributions made to a
17
regulated superannuation fund on or after 1 October 2013.
18

 


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