Superannuation Industry (Supervision) Act 1993

PART 16A - APRA ' S POWERS TO ISSUE DIRECTIONS  

Division 2 - Directions to relinquish control over an RSE licensee  

SECTION 131EB   DIRECTION TO RELINQUISH CONTROL  

131EB(1)    
The Regulator may give a person a direction to relinquish control of an RSE licensee if:

(a) the Regulator has reason to believe that:

(i) the person has a controlling stake in the RSE licensee; or

(ii) the person has practical control of the RSE licensee; and

(b) the Regulator has reason to believe that because of:

(i) the person ' s controlling stake, or practical control, of the RSE licensee; or

(ii) the way in which control has been, is or is likely to be exercised;

the RSE licensee has been, is or is likely to be unable to satisfy one or more of the trustee ' s obligations contained in a covenant set out in sections 52 to 53 , or prescribed under section 54A .

131EB(2)    
The Regulator may give a person a direction to relinquish control of an RSE licensee if:

(a) the Regulator has reason to believe that the person has a controlling stake in the RSE licensee; and

(b) the person does not have approval under section 29HD to hold a controlling stake in the RSE licensee.

131EB(3)    
The Regulator may give a person a direction to relinquish control of an RSE licensee if:

(a) the Regulator has reason to believe that that the person has a controlling stake in the RSE licensee; and

(b) the person has approval under section 29HD to hold a controlling stake in the RSE licensee; and

(c) information given to the Regulator in relation to the application for approval was false or misleading in a material particular.

131EB(4)    
To avoid doubt, a direction under subsection (1) or (3) to a person to relinquish a controlling stake in an RSE licensee may be given even if the person has approval to hold a controlling stake in the RSE licensee.

131EB(5)    
The direction must be given in writing.

131EB(6)    
The Regulator must give the person:

(a) a copy of the direction; and

(b) a statement of the Regulator ' s reasons for giving the direction.

131EB(7)    
The Regulator may revoke a direction to relinquish control of an RSE licensee.

131EB(8)    
The revocation must be in writing and a copy of the revocation must be given to the person.