SUPERANNUATION INDUSTRY (SUPERVISION) ACT 1993

PART 14 - OTHER PROVISIONS APPLYING TO SUPERANNUATION ENTITIES  

SECTION 115   TRUSTEE OF SUPERANNUATION ENTITY MAY MAINTAIN RESERVES  

115(1)  


The trustee of a superannuation entity may maintain a reserve of the entity for a particular purpose, unless the governing rules of the entity prohibit the maintenance of a reserve for that purpose. Governing rules of an RSE must not prohibit reserves to cover operational risk

115(2)  
The governing rules of a registrable superannuation entity must not prohibit the maintenance of a reserve to cover the operational risk relating to the entity.

115(3)  
If the governing rules of a registrable superannuation entity are inconsistent with subsection (2):


(a) subsection (2) prevails; and


(b) the governing rules are invalid, to the extent of the inconsistency.




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