Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies if the Regulator reasonably believes that a person who is:
(a) a trustee of a self managed superannuation fund; or
(b) a director of a body corporate that is a trustee of a self managed superannuation fund;
has contravened a provision of this Act (other than Part 3B) or the regulations in relation to the fund.
(2) The Regulator may give the person a written direction (a rectification direction ) requiring the person:
(a) to take specified action to rectify the contravention; and
(b) to provide the Regulator with evidence of the person's compliance with the direction.
(3) In deciding whether to give a person a rectification direction, the Regulator is to have regard to:
(a) any financial detriment that might reasonably be expected to be suffered by the fund as a result of the person's compliance with the direction; and
(b) the nature and seriousness of the person's contravention; and
(c) any other relevant circumstances.
(4) A rectification direction must specify the period within which the person must comply with the direction (which must be a period that is reasonable in the circumstances).
Note: The period may be affected by the operation of subsection 164(7).
(5) The Regulator must not give a rectification direction in relation to a contravention if:
(a) the Regulator has, under section 262A, accepted an undertaking given by a person; and
(b) the contravention is covered by the undertaking; and
(c) the undertaking has neither been withdrawn nor varied in a way that means the contravention is no longer covered by it.
(6) A person to whom a rectification direction is given must comply with the direction before the end of the period specified in the direction for the purposes of subsection (4).
(7) A person commits an offence of strict liability if the person contravenes subsection (6).