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Superannuation Industry (Supervision) Act 1993

PART 2B - REGISTRABLE SUPERANNUATION ENTITIES

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Division 5 - RSE licensees must provide information about registrable superannuation entities

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History

Div 5 heading substituted by No 40 of 2019, s 3 and Sch 7 item 4, applicable in relation to years of income of a registrable superannuation entity beginning on or after 6 April 2019. Div 5 heading formerly read:

Division - Offences

Div 5 inserted by No 171 of 2012 (as amended by No 21 of 2015), s 3 and Sch 3 item 42, effective 1 July 2013. No 21 of 2015, s 3 and Sch 7 item 51, contains the following provision:

51 Validation of regulations
(1)
Regulations made under the Superannuation Industry (Supervision) Act 1993 before the commencement of this item are as valid as they would have been if they had been made under that Act as amended by the corrected Act.
(2)
For the purposes of this item, the corrected Act is the Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Act 2012 as amended by items 49 and 50 of this Schedule.

Former Div 5 repealed by No 117 of 2012, s 3 and Sch 2 item 33, effective 9 September 2012. Div 5 formerly read:

Division 5 - Risk management plans

Subdivision A - Contents of risk management plans

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Subdiv A inserted by No 53 of 2004, s 3 and Sch 1 item 29, effective 1 July 2004.

SECTION 29P CONTENTS OF RISK MANAGEMENT PLANS
29P(1)
The risk management plan for a registrable superannuation entity must set out reasonable measures and procedures that the RSE licensee of the entity is to apply to identify, monitor and manage the risks that arise in operating the entity.
29P(2)
Without limiting subsection (1), the risk management plan for a registrable superannuation entity must set out:

(a) reasonable measures and procedures that the RSE licensee of the entity is to apply to identify, monitor and manage:

(i) the risks to the investment strategy relevant to the entity; and

(ii) the risks to the entity's financial position; and

(iii) the risks from entering into outsourcing arrangements relating to the entity; and

(b) the circumstances in which an audit of the risks referred to in this section is to be undertaken; and

(c) such other matters as are prescribed by regulations made for the purposes of this paragraph.
29P(3)
The risk management plan must be signed by the RSE licensee of the entity.
Note:

If the RSE licensee is a group of individual trustees, the plan must be signed by each of the individual trustees: see subsection 13A(6) .

29P(4)
The risk management plan must not by reference incorporate provisions of any other document unless that other document is available, without charge, to members of the public.
29P(5)
A risk management plan does not fail to comply with the above section merely because it reproduces information contained in the risk management strategy of the RSE licensee of the entity or in a risk management plan for another entity that has the same RSE licensee.
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History

S 29P inserted by No 53 of 2004, s 3 and Sch 1 item 29, effective 1 July 2004.

Subdivision B - Maintaining and reviewing risk management plans

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Subdiv B inserted by No 53 of 2004, s 3 and Sch 1 item 29, effective 1 July 2004.

SECTION 29PA REQUIREMENT TO MAINTAIN AND REVIEW RISK MANAGEMENT PLANS
29PA(1)
An RSE licensee of a registrable superannuation entity that has been registered under this Part must:

(a) ensure that at all times the risk management plan for the entity is up-to-date; and

(b) ensure that the risk management plan for the entity is reviewed at least once each year to ensure that it complies with section 29P ; and

(c) modify, or replace, the risk management plan for the entity in accordance with section 29PB if at any time the trustee becomes aware that the risk management plan no longer complies with section 29P .
29PA(2)
An RSE licensee of a registrable superannuation entity must review the risk management plan for the entity within 60 days after the RSE licensee:

(a) becomes the RSE licensee of the entity (unless the entity is a registrable superannuation entity of which, at the time of the application for an RSE license, the RSE licensee proposed to become the RSE licensee); or

(b) becomes an acting trustee appointed under Part 17 of a superannuation entity following the suspension or removal of a former trustee of the entity under that Part.
However, this subsection does not apply if a review of the risk management plan is due under paragraph (1)(b) within the 60 days after the RSE licensee becomes the RSE licensee, or trustee, of the entity.

Note:

Only a person may be appointed as an acting trustee under Part 17 : see section 134 .

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S 29PA inserted by No 53 of 2004, s 3 and Sch 1 item 29, effective 1 July 2004.

SECTION 29PB MODIFICATIONS ETC. TO RISK MANAGEMENT PLANS
29PB(1)
An RSE licensee of a registrable superannuation entity that has been registered under this Part may:

(a) modify the risk management plan for the entity; or

(b) repeal the risk management plan for the entity and replace it with a new risk management plan.
29PB(2)
However, after the modification or the repeal and replacement, the risk management plan must comply with section 29P .
29PB(3)
APRA may direct an RSE licensee of a registrable superannuation entity that has been registered under this Part to modify the risk management plan for the entity, as set out in the direction, by a specified time, to ensure that the plan complies with section 29P . The direction is to be given by notice to the RSE licensee.
Note:

A failure to comply with a direction may be an offence: see section 29Q .

29PB(4)
A time specified in a direction given to an RSE licensee under subsection (3) must be at least 14 days after the direction is given to the RSE licensee.
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S 29PB inserted by No 53 of 2004, s 3 and Sch 1 item 29, effective 1 July 2004.

SECTION 29PC NOTIFICATION OF MODIFICATIONS ETC. TO RISK MANAGEMENT PLANS
29PC(1)
If an RSE licensee modifies a risk management plan for a registrable superannuation entity that has been registered under this Part, the RSE licensee must give APRA:

(a) a copy of the modification; and

(b) a copy of the plan as modified;
within 14 days after making the modification.

29PC(2)
If an RSE licensee repeals a risk management plan (the old plan ) for a registrable superannuation entity that has been registered under this Part and replaces it with another risk management plan (the new plan ), the RSE licensee must give APRA:

(a) a copy of the new plan; and

(b) a written statement to the effect that the new plan replaces the old plan;
within 14 days after the old plan is repealed.

29PC(3)
Any copy or statement given to APRA under this section must be signed by the RSE licensee.
Note:

If the RSE licensee is a group of individual trustees, the copy or statement must be signed by each of the individual trustees: see subsection 13A(6) .

29PC(4)
A person commits an offence if:

(a) the person is:

(i) a body corporate that is an RSE licensee; or

(ii) a member of a group of individual trustees that is an RSE licensee; and

(b) the RSE licensee is in breach of subsection (1), (2) or (3).
Penalty: 50 penalty units.

29PC(5)
A person commits an offence if:

(a) the person is:

(i) a body corporate that is an RSE licensee; or

(ii) a member of a group of individual trustees that is an RSE licensee; and

(b) the RSE licensee is in breach of subsection (1), (2) or (3).
This is an offence of strict liability.

Penalty: 25 penalty units.

Note 1:

For strict liability , see section 6.1 of the Criminal Code .

Note 2:

Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility and Part IA of the Crimes Act 1914 contains provisions dealing with penalties.

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History

S 29PC inserted by No 53 of 2004, s 3 and Sch 1 item 29, effective 1 July 2004.

Subdivision C - Miscellaneous

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History

Subdiv C inserted by No 53 of 2004, s 3 and Sch 1 item 29, effective 1 July 2004.

SECTION 29PD ACCESS TO RISK MANAGEMENT PLANS
29PD(1)
If a member or unit holder of a registrable superannuation entity that has been registered under this Part requests a copy of the risk management plan for the entity, the RSE licensee of the entity must make a copy of the plan available, without charge, to the member or unit holder as soon as practicable after the RSE licensee receives the request.
29PD(2)
If an employer-sponsor of a registrable superannuation entity that:

(a) has been registered under this Part; and

(b) is a defined benefit fund;
requests a copy of the risk management plan for the entity, the RSE licensee of the entity must make a copy of the plan available, without charge, to the employer-sponsor as soon as practicable after the RSE licensee receives the request.

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S 29PD inserted by No 53 of 2004, s 3 and Sch 1 item 29, effective 1 July 2004.

SECTION 29PE APRA TO BE GIVEN INFORMATION
29PE(1)
APRA may give an RSE licensee of a registrable superannuation entity that has been registered under this Part a notice requesting the RSE licensee to give APRA, in a specified way, specified information relating to the risk management plan for the entity by a specified time that is reasonable in the circumstances.
29PE(2)
A person commits an offence if:

(a) the person is:

(i) a body corporate that is an RSE licensee; or

(ii) a member of a group of individual trustees that is an RSE licensee; and

(b) there has been a failure by the RSE licensee to comply with the notice.
Penalty: 50 penalty units.

29PE(3)
A person commits an offence if:

(a) the person is:

(i) a body corporate that is an RSE licensee; or

(ii) a member of a group of individual trustees that is an RSE licensee; and

(b) there has been a failure by the RSE licensee to comply with the notice.
This is an offence of strict liability.

Penalty: 25 penalty units.

Note 1:

For strict liability , see section 6.1 of the Criminal Code .

Note 2:

Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility and Part IA of the Crimes Act 1914 contains provisions dealing with penalties.

Note 3:

Sections 137.1 and 137.2 of the Criminal Code also create offences for providing false or misleading information or documents.

29PE(4)
Subsection (2) or (3) does not apply if the RSE licensee has a reasonable excuse for the failure to comply with the notice under subsection (1).
Note:

A defendant bears an evidential burden in relation to the matter in subsection (4) (see subsection 13.3(3) of the Criminal Code ).

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History

S 29PE inserted by No 53 of 2004, s 3 and Sch 1 item 29, effective 1 July 2004.

Former Div 5 inserted by No 53 of 2004, s 3 and Sch 1 item 29, effective 1 July 2004.

Subdivision A - Annual members ' meetings

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SECTION 29P ANNUAL MEMBERS ' MEETING

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RSE licensees must hold annual members ' meetings

29P(1)
The RSE licensee of a registrable superannuation entity must hold an annual meeting of members of the entity for each year of income of the entity. Notice of meeting

29P(2)
The RSE licensee must give notice of the annual members ' meeting to each of the following:

(a) all members of the registrable superannuation entity;

(b) if the RSE licensee is a body corporate - all responsible officers of the body corporate;

(c) any person who has been an auditor of the registrable superannuation entity for the year of income of the entity;

(d) any person who has been an actuary of the registrable superannuation entity during the year of income of the entity.

29P(3)
The RSE licensee must:

(a) include in the notice:

(i) the time and location of the annual members ' meeting; and

(ii) if the annual members ' meeting to be held by electronic means - details of how the meeting can be attended electronically; and

(iii) the agenda of matters to be discussed at the annual members ' meeting; and

(b) include with the notice any other information prescribed by the regulations; and

(c) give the notice, and any information required to be included with the notice, in the manner (if any) prescribed by the regulations; and

(d) give the notice, and any information required to be included with the notice:

(i) no later than 6 months after the end of the year of income of the entity; and

(ii) at least 21 days before the meeting.

29P(3A)
Despite subsection 14(2) of the Legislation Act 2003 , regulations made for the purposes of paragraph (3)(b) may make provision in relation to a matter by applying, adopting or incorporating (with or without modification) any matter contained in a reporting standard, made by APRA under the Financial Sector (Collection of Data) Act 2001 , as in force or existing from time to time. Timing of meeting

29P(4)
The meeting must be held within 3 months after the notice of the meeting is given in accordance with subsections (2) and (3) . Conduct of an annual members ' meeting

29P(5)
At the annual members ' meeting, the RSE licensee must give members of the registrable superannuation entity reasonable opportunities to ask questions about:

(a) the registrable superannuation entity; and

(b) if the RSE licensee is a body corporate - the RSE licensee and the responsible officers of the RSE licensee; and

(c) if the RSE licensee is a group of individual trustees - each of the individual trustees; and

(d) any audit of the registrable superannuation entity for the year of income of the entity; and

(e) any actuarial investigation of the registrable superannuation entity during the year of income of the entity; and

(f) any information included with the notice of the meeting. Minutes of meeting

29P(6)
The RSE licensee must ensure that:

(a) minutes of the annual members ' meeting are prepared; and

(b) those minutes include the answers to any questions asked at the meeting that a person is obliged to answer either at or after the meeting under sections 29PB , 29PC , 29PD or 29PE ; and

(c) those minutes are made available to all members on the registrable superannuation entity ' s website. Subsection (1) does not apply in relation to certain entities

29P(7)
Subsection (1) does not apply in relation to a registrable superannuation entity that is:

(a)

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a superannuation fund with no more than 6 members; or

(b) an excluded approved deposit fund; or

(c) a pooled superannuation trust; or

(d) an eligible rollover fund.

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Offence

29P(8)
A person commits an offence if:

(a) the person is:

(i) a body corporate that is an RSE licensee; or

(ii) a member of a group of individual trustees that is an RSE licensee; and

(b) the RSE licensee contravenes subsection (1) , (2) , (3) , (4) , (5) or (6) .

Penalty: 50 penalty units.

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Superannuation Industry (Supervision) Act 1993

Division 5 - Risk management plans

Subdivision A - Contents of risk management plans

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Subdivision B - Maintaining and reviewing risk management plans

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Note 2:

Subdivision C - Miscellaneous

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