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This is a Bill, not an Act. For current law, see the Acts databases.
PARLIAMENT OF VICTORIA
Courts Legislation Amendment (Funds in Court)
Bill 2014
TABLE OF PROVISIONS
Clause Page
PART 1--PRELIMINARY 1
1 Purpose 1
2 Commencement 1
3 Principal Act 2
PART 2--AMENDMENT OF THE SUPREME COURT ACT 1986 3
4 Power to make Rules 3
5 Court orders relating to administration of children's funds 3
6 Heading for new Division 2AA of Part 7 inserted 3
7 New sections 112 to 112C inserted 3
112 Definitions for this Division 3
112A Objectives of Senior Master in investing and
administering funds in court under this Division 4
112B Annual report 5
112C Survey of beneficiary satisfaction 6
8 Common Funds--amendments relating to fund custodians and
external fund managers 6
9 New sections 113BA to 113BH inserted 8
113BA Statements to beneficiaries 8
113BB Information statement to be provided to new
beneficiaries 8
113BC Application for funds in court under this Division
to be transferred to administrator 9
113BD Internal process for complaints 10
113BE Report on complaints for inclusion in Court's annual
report 10
113BF Making a complaint 10
113BG Complaint cannot be made regarding exercise of
judicial function 11
113BH Audit 11
571132B.I-16/9/2014 i BILL LA INTRODUCTION 16/9/2014
Clause Page
PART 3--AMENDMENT OF OTHER ACTS AND REPEAL OF
AMENDING ACT 12
10 Court orders relating to administration of children's funds--
County Court Act 1958 12
11 Matters before a Court--Guardianship and Administration
Act 1986 12
12 Court orders relating to administration of children's funds--
Magistrates' Court Act 1989 13
13 Repeal of amending Act 13
ENDNOTES 14
571132B.I-16/9/2014 ii BILL LA INTRODUCTION 16/9/2014
PARLIAMENT OF VICTORIA
Introduced in the Assembly
Courts Legislation Amendment (Funds
in Court) Bill 2014
A Bill for an Act to amend the Supreme Court Act 1986 in relation
to funds in court, to consequentially amend other Acts and for other
purposes.
The Parliament of Victoria enacts:
PART 1--PRELIMINARY
1 Purpose
The main purpose of this Act is to amend the
Supreme Court Act 1986 in relation to the
5 administration, custodianship and management of
funds in court.
2 Commencement
(1) Subject to subsection (2), this Act comes into
operation on a day or days to be proclaimed.
571132B.I-16/9/2014 1 BILL LA INTRODUCTION 16/9/2014
Courts Legislation Amendment (Funds in Court) Bill 2014
Part 1--Preliminary
s. 3
(2) If a provision of this Act does not come into
operation before 1 July 2015 it comes into
operation on that day.
3 Principal Act
5 See:
Act No.
In this Act, the Supreme Court Act 1986 is
110/1986. called the Principal Act.
Reprint No. 8
as at
1 December
2013
and
amending
Act Nos
110/1986,
63/2013,
68/2013,
1/2014,
17/2014,
25/2014,
37/2014 and
42/2014.
LawToday:
www.
legislation.
vic.gov.au
__________________
571132B.I-16/9/2014 2 BILL LA INTRODUCTION 16/9/2014
Courts Legislation Amendment (Funds in Court) Bill 2014
Part 2--Amendment of the Supreme Court Act 1986
s. 4
PART 2--AMENDMENT OF THE SUPREME COURT ACT
1986
4 Power to make Rules
In section 25(1)(d)(iii) of the Principal Act, after
5 "Funds" insert "and for the purposes of
Division 2AA of Part 7".
5 Court orders relating to administration of children's
funds
After section 51A(1) of the Principal Act insert--
10 "(1A) In making an order under subsection (1)(b),
there is no presumption that money should
be administered in accordance with
Division 2AA of Part 7 in preference to
administration by an administrator.
15 (1B) Subsection (1A) does not limit any other
factors the Court may consider in making an
order under subsection (1)(b).".
6 Heading for new Division 2AA of Part 7 inserted
Before section 113 of the Principal Act insert--
20 "Division 2AA--Senior Master and
administration of funds in court".
7 New sections 112 to 112C inserted
Before section 113 of the Principal Act insert--
"112 Definitions for this Division
25 In this Division--
beneficiary means a person under a legal
disability who has been awarded
damages, compensation or financial
assistance, is the recipient of a payment
30 under a settlement of a claim or has
been awarded a share of a deceased
estate under Part IV of the
Administration and Probate Act 1958
571132B.I-16/9/2014 3 BILL LA INTRODUCTION 16/9/2014
Courts Legislation Amendment (Funds in Court) Bill 2014
Part 2--Amendment of the Supreme Court Act 1986
s. 7
and for whom funds in court under this
Division are held by the Senior Master;
complaint means a complaint made under
section 113BF;
5 funds in court under this Division means
money referred to in section 113(1).
112A Objectives of Senior Master in investing
and administering funds in court under
this Division
10 (1) In investing any funds in court under this
Division on behalf of beneficiaries--
(a) the Senior Master is to act in the best
interests of the beneficiaries of those
funds and use best efforts to obtain
15 maximum possible returns on
investments, having regard to the need
for liquidity, investment risk and the
costs of administering those funds; and
(b) in making decisions regarding
20 investment of funds on behalf of any
individual beneficiary, the Senior
Master is also to have regard to--
(i) the beneficiary's age; and
(ii) the beneficiary's need for
25 liquidity; and
(iii) any preferences as to risk
expressed by a beneficiary or a
beneficiary's guardian, legal
representative or other
30 representative.
(2) In administering any funds in court under
this Division, including making decisions
regarding the use of a beneficiary's funds, the
Senior Master is to--
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Courts Legislation Amendment (Funds in Court) Bill 2014
Part 2--Amendment of the Supreme Court Act 1986
s. 7
(a) give all practicable and appropriate
effect to the beneficiary's wishes; and
(b) take any steps that are reasonably
available to encourage the beneficiary
5 to participate in decisions affecting the
beneficiary's affairs.
(3) The Senior Master is to ensure that the
administration of funds in court under this
Division, including the common funds and
10 the beneficiaries, are dealt with in a
transparent and accountable manner.
112B Annual report
(1) The Senior Master must annually prepare a
report on the management of funds in court
15 under this Division.
(2) The report must include the following--
(a) the performance of the common funds,
including before and after costs and
expenses are deducted;
20 (b) a breakdown of costs and expenses of
funds in court under this Division,
together with an explanation of any
increase or decrease in costs and
expenses compared with the preceding
25 year;
(c) a comparison of the annual
performance of the funds to appropriate
benchmarks covering return and risk;
(d) the investment of funds, including the
30 asset classes into which funds are
invested;
(e) the number of new beneficiaries whose
funds are to be administered by the
Senior Master;
571132B.I-16/9/2014 5 BILL LA INTRODUCTION 16/9/2014
Courts Legislation Amendment (Funds in Court) Bill 2014
Part 2--Amendment of the Supreme Court Act 1986
s. 8
(f) identification of the number of
beneficiary requests to transfer to an
administrator and how many of those
requested transfers were made;
5 (g) if a survey is conducted under
section 112C in that year, the results of
the survey of beneficiary satisfaction;
(h) any requirements prescribed by the
Rules;
10 (i) any other matter the Senior Master
considers appropriate for inclusion in
the report.
(3) The report prepared under this section must
be included in the Court's annual report.
15 112C Survey of beneficiary satisfaction
Not less than every 3 years, the Senior
Master must cause to be conducted a survey
of beneficiary satisfaction with the
management of common funds.".
20 8 Common Funds--amendments relating to fund
custodians and external fund managers
(1) After section 113(18)(bb) of the Principal Act
insert--
"(bc) payments of costs and expenses incurred
25 under subsection (28) or (30);".
(2) In section 113(26) of the Principal Act--
(a) after "Rules" insert "and subsection (27)";
(b) for "the State Trust" substitute "State
Trustees or, with the consent of the Chief
30 Justice, any external fund manager".
571132B.I-16/9/2014 6 BILL LA INTRODUCTION 16/9/2014
Courts Legislation Amendment (Funds in Court) Bill 2014
Part 2--Amendment of the Supreme Court Act 1986
s. 8
(3) After section 113(26) of the Principal Act
insert--
"(27) If the Senior Master is considering whether
to appoint an external fund manager under
5 subsection (26), not less than 4 months
before making that appointment, the Senior
Master must consult the Treasurer in relation
to the proposed appointment.
(28) Any costs or expenses incurred as a result of
10 the appointment of State Trustees or any
external fund manager under subsection (26)
and any costs or expenses associated with the
management of funds in court under this
Division by that external fund manager are
15 chargeable as part of the costs and expenses
of administering, investing and managing
those funds.
(29) Subject to the Rules, the Senior Master, with
the consent of the Chief Justice, may appoint
20 one or more fund custodians for the purposes
of--
(a) holding funds in court under this
Division for or on behalf of the Senior
Master; and
25 (b) undertaking functions associated with
the holding of funds in court under this
Division for or on behalf of the Senior
Master.
(30) Any costs or expenses incurred as a result of
30 the appointment of a fund custodian under
subsection (29) and any costs or expenses
associated with the custodianship of funds in
court under this Division by the fund
custodian are chargeable as part of the costs
35 and expenses of administering those funds.".
571132B.I-16/9/2014 7 BILL LA INTRODUCTION 16/9/2014
Courts Legislation Amendment (Funds in Court) Bill 2014
Part 2--Amendment of the Supreme Court Act 1986
s. 9
9 New sections 113BA to 113BH inserted
After section 113B of the Principal Act insert--
"113BA Statements to beneficiaries
(1) The Senior Master must provide to each
5 beneficiary whose funds in court under this
Division are invested in a common fund a
statement of the details of--
(a) the person's money in the relevant
common fund; and
10 (b) the return on investment on those
funds; and
(c) the extent to which the return on
investments has been diminished by
administrative costs and expenses; and
15 (d) any taxation paid by the beneficiary.
(2) A statement under subsection (1)--
(a) must be provided at least annually; and
(b) must include any information
prescribed by the Rules.
20 113BB Information statement to be provided to
new beneficiaries
(1) The Senior Master must provide to each new
beneficiary an information statement about
investment of the person's funds in court
25 under this Division as soon as practicable
after the person becomes a beneficiary.
(2) If there is a material change to information
previously provided to a beneficiary in an
information statement under this section, the
30 Senior Master must provide to the
beneficiary a supplementary information
statement.
571132B.I-16/9/2014 8 BILL LA INTRODUCTION 16/9/2014
Courts Legislation Amendment (Funds in Court) Bill 2014
Part 2--Amendment of the Supreme Court Act 1986
s. 9
(3) An information statement must contain the
following information--
(a) the process of administration by the
Senior Master, including whether any
5 external fund managers or fund
custodians are involved in that
administration;
(b) how recovery of costs and expenses
impacts on the returns of the
10 beneficiary;
(c) the procedure for requesting the
transfer of funds to an administrator;
(d) the risks associated with investments
made by the Senior Master;
15 (e) the complaints handling procedures;
(f) any other information prescribed by the
Rules.
113BC Application for funds in court under this
Division to be transferred to
20 administrator
(1) A beneficiary, that person's guardian or legal
representative, or any person authorised to
make applications on that person's behalf
may apply to the Court for any funds in court
25 under this Division held for that beneficiary
to be transferred to an administrator.
(2) An application under subsection (1) may be
made at any time.
(3) If an application under subsection (1) is for
30 transfer to State Trustees, any public trustee
in Australia or any licensed trustee company
regulated by Chapter 5D of the Corporations
Act, the Court must grant the application
unless satisfied that the transfer would not be
35 in the best interests of the beneficiary.
571132B.I-16/9/2014 9 BILL LA INTRODUCTION 16/9/2014
Courts Legislation Amendment (Funds in Court) Bill 2014
Part 2--Amendment of the Supreme Court Act 1986
s. 9
(4) If an application under subsection (1) is for
transfer to an administrator other than State
Trustees, a public trustee in Australia or a
licensed trustee company regulated by
5 Chapter 5D of the Corporations Act, the
Court must grant the application if satisfied
that the transfer would be in the best interests
of the beneficiary.
113BD Internal process for complaints
10 The Senior Master must institute and operate
a system to receive and resolve complaints in
respect of services provided under this
Division.
113BE Report on complaints for inclusion in
15 Court's annual report
The Senior Master must annually prepare a
report on complaints for inclusion in the
Court's annual report.
113BF Making a complaint
20 (1) A person referred to in subsection (2) may
make a complaint to the Senior Master about
any matter relating to the provision of
services in the administration of--
(a) a person's funds in court under this
25 Division; or
(b) matters affecting beneficiaries
generally in relation to funds in court
under this Division.
(2) The following persons may make a
30 complaint--
(a) a beneficiary;
571132B.I-16/9/2014 10 BILL LA INTRODUCTION 16/9/2014
Courts Legislation Amendment (Funds in Court) Bill 2014
Part 2--Amendment of the Supreme Court Act 1986
s. 9
(b) a beneficiary's guardian, legal
representative, any person authorised to
make applications on that person's
behalf or a carer or relative.
5 (3) A person may make a complaint--
(a) orally; or
(b) in writing; or
(c) by any other means which is
appropriate in the circumstances.
10 113BG Complaint cannot be made regarding
exercise of judicial function
A person may not make a complaint under
this Division about the exercise of, or the
manner of exercising, a judicial function by
15 the Senior Master or a judicial registrar.
113BH Audit
(1) The accounts of the Senior Master relating to
funds in court under this Division, including
the common funds, must be audited
20 annually.
(2) An audit under subsection (1) may be carried
out--
(a) by the Auditor-General; or
(b) by a person authorised by the Auditor-
25 General.".
__________________
571132B.I-16/9/2014 11 BILL LA INTRODUCTION 16/9/2014
Courts Legislation Amendment (Funds in Court) Bill 2014
Part 3--Amendment of Other Acts and Repeal of Amending Act
s. 10
PART 3--AMENDMENT OF OTHER ACTS AND REPEAL OF
AMENDING ACT
10 Court orders relating to administration of children's
funds--County Court Act 1958
5 See:
Act No.
After section 39B(1) of the County Court Act
6230. 1958 insert--
Reprint No. 15
as at "(1A) In making an order under subsection (1)(b),
1 May 2013
and
there is no presumption that money should
amending be administered in accordance with
10 Act Nos 6230,
58/2013,
Division 2AA of Part 7 of the Supreme
63/2013, Court Act 1986 in preference to
67/2013,
68/2013,
administration by an administrator.
17/2014,
25/2014, (1B) Subsection (1A) does not limit any other
37/2014 and factors the court may consider in making an
42/2014.
15 LawToday: order under subsection (1)(b).".
www.
legislation.
vic.gov.au
11 Matters before a Court--Guardianship and
Administration Act 1986
See: After section 66(3) of the Guardianship and
Act No.
58/1986. Administration Act 1986 insert--
Reprint No. 8
20 as at "(3A) In making an order under subsection (3)(b),
17 January
2013 and
there is no presumption that money should
amending Act be administered in accordance with
Nos 26/2014
and 37/2014.
Division 2AA of Part 7 of the Supreme
LawToday: Court Act 1986 in preference to
25 www.
legislation.
administration by an administrator.
vic.gov.au
(3B) Subsection (3A) does not limit any other
factors the Court may consider in making an
order under subsection (3)(b).".
571132B.I-16/9/2014 12 BILL LA INTRODUCTION 16/9/2014
Courts Legislation Amendment (Funds in Court) Bill 2014
Part 3--Amendment of Other Acts and Repeal of Amending Act
s. 12
12 Court orders relating to administration of children's
funds--Magistrates' Court Act 1989
After section 101A(1) of the Magistrates' Court See:
Act No.
Act 1989 insert-- 51/1989.
Reprint No. 18
5 "(1A) In making an order under subsection (1)(b), as at
7 March 2014
there is no presumption that money should and
be administered in accordance with amending
Act Nos
Division 2AA of Part 7 of the Supreme 51/1989,
Court Act 1986 in preference to 12/2010,
10 administration by an administrator. 32/2013,
67/2013,
1/2014,
(1B) Subsection (1A) does not limit any other 17/2014,
factors the Court may consider in making an 25/2014,
26/2014,
order under subsection (1)(b).". 32/2014,
37/2014,
42/2014 and
47/2014.
LawToday:
www.
legislation.
vic.gov.au
13 Repeal of amending Act
15 This Act is repealed on 1 July 2016.
Note
The repeal of this Act does not affect the continuing operation of
the amendments made by it (see section 15(1) of the
Interpretation of Legislation Act 1984).
571132B.I-16/9/2014 13 BILL LA INTRODUCTION 16/9/2014
Courts Legislation Amendment (Funds in Court) Bill 2014
Endnotes
ENDNOTES
By Authority. Government Printer for the State of Victoria.
571132B.I-16/9/2014 14 BILL LA INTRODUCTION 16/9/2014
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