Corporations Regulations 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.9 - FINANCIAL PRODUCT DISCLOSURE AND OTHER PROVISIONS RELATING TO ISSUE AND SALE OF FINANCIAL PRODUCTS  

Division 7 - Cooling-off periods  

REGULATION 7.9.68   MODIFICATION OF SECTION 1019B OF THE ACT: CLIENT INCLUDES STANDARD EMPLOYER-SPONSOR  

7.9.68(1)   [ Client includes standard employer-sponsor]  

For paragraph 1020G(1)(c) of the Act, subsection 1019A(1) and paragraph 1019A(3)(a) of the Act are modified so that a reference in those provisions to a client includes a standard employer-sponsor in respect of the issue of a superannuation product to an employee of the standard employer-sponsor as a standard employer-sponsored member in accordance with subparagraph 1016A(2)(b)(iii) of the Act.

7.9.68(2)   [ Mandated contributions under the SIS Act]  

For paragraph 1020G(1)(c) of the Act, subsection 1019B(1) of the Act is modified in its application to the issue of a superannuation product mentioned in subregulation (1) as if a reference in subsection 1019B(1) to money paid to acquire a financial product were a reference to all monies paid in relation to the superannuation product.

7.9.68(3)   [ Employer contributions]  

For subsection 1019B(2) of the Act, it is a requirement of the exercise of the right to return a superannuation product mentioned in subregulation (1) that, if the monies to be repaid include employer contributions (whether or not they are mandated employer contributions), the standard employer-sponsor must nominate a superannuation fund, approved deposit fund or RSA into which the employer contributions are to be repaid.

7.9.68(4)   [ Exercise of right of return]  

The right of return is taken to have been exercised only on receipt by the responsible person of the nomination.

7.9.68(5)   [ Time for nomination]  

The standard employer-sponsor must make the nomination not later than 1 month after notifying the responsible person of the right to exercise the right of return.

7.9.68(6)   [ Notification]  

The standard employer-sponsor must notify the responsible person in writing or by electronic means.

7.9.68(7)   [ Return of money]  

For subsection 1019B(7) of the Act, if the right of return is exercised by a standard employer-sponsor under this regulation, the responsible person must return the money as directed.

7.9.68(8)   [ Moneys paid for superannuation product]  

For subsection 1019B(7) of the Act, if the right of return is exercised by a standard employer-sponsor under this regulation, and if the monies to be repaid include monies paid in relation to the superannuation product by the standard employer-sponsored member (including monies rolled over or transferred from another superannuation entity or RSA) (the relevant monies ) the relevant monies are to be paid by the responsible person:


(a) in respect of benefits defined under the SIS Regulations as a [ sic ] restricted non-preserved benefits or preserved benefits ( restricted monies ) - to a superannuation entity or RSA as directed by the standard employer-sponsored member; or


(b) in respect of any other relevant monies paid by the standard employer-sponsored member - as directed by the standard employer-sponsored member.

7.9.68(9)   [ Rollover or transfer to eligible rollover fund]  

For subsection 1019B(7) of the Act, if:


(a) a financial product mentioned in this regulation is subject to the nomination of a further superannuation entity or RSA; and


(b) the application in relation to the issue of a financial product is not accepted by the nominated superannuation entity or RSA;

the responsible person may rollover or transfer the holder's benefits to an eligible rollover fund.




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