Commonwealth Numbered Regulations

1997 No. 117 SUPERANNUATION INDUSTRY (SUPERVISION) REGULATIONS (AMENDMENT) - REG 6

6.1 Subregulation 2.01 (1): Insert the following definitions:

"'building society' has the same meaning as in section 16 of the RSA Act;
'capital guaranteed', in relation to a policy, has the meaning given by
subsection 14 (2) of the RSA Act;
'capital guaranteed fund' means a public offer superannuation fund, or a
sub-fund of a public offer superannuation fund, that has the following
characteristics:

   (a)  its investments comprise 1 or more of the following only:

        (i)    deposits with an approved bank;

        (ii)   deposits with a building society;

        (iii)  deposits with a credit union;

        (iv)   investments in a capital guaranteed policy;

   (b)  the contributions and accumulated earnings of its members cannot be
        reduced by negative investment returns (within the meaning of
        subregulation 5.01 (1)) or by any reduction in the value of its
        assets;
'credit union' has the same meaning as in section 16 of the RSA Act;
'policy' has the same meaning as in section 16 of the RSA Act;
'prescribed earning rate', in relation to a fixed-rate option offered by a
capital guaranteed fund for a period, means the earning rate declared, in
advance, by the fund;
'sub-fund', in relation to a capital guaranteed fund, means a segment of a
public offer superannuation fund that has the following characteristics:

   (a)  the sub-fund has separately identifiable assets and separately
        identifiable beneficiaries;

   (b)  each beneficiary of the sub-fund has an interest only in the assets of
        the sub-fund and not in the other assets of the public offer
        superannuation fund;

   (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;

   (d)  the insurance and administration costs of the sub-fund are
        attributable only to that sub-fund;".