Corporations Amendment Regulations 2002 (No. 2) (16 of 2002)

Schedule 1   Amendments commencing at 12.01 am (in the Australian Capital Territory) on 11 March 2002

[136]   Subregulations 7.9.68 (2) and (3)

substitute

(2) 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.

(3) 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 mandated employer contributions, the standard employer-sponsor must nominate a superannuation fund, approved deposit fund or RSA into which the mandated employer contributions are to be repaid.

(4) The right of return is taken to have been exercised only on receipt by the provider of the nomination.

(5) The standard employer-sponsor must make the nomination not later than 1 month after notifying the product issuer of the right to exercise the right of return.

(6) The standard employer-sponsor must notify the product issuer in writing or by electronic means.

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

(8) 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 for the superannuation product by the standard employer-sponsored member (the relevant monies ) the relevant monies are to be paid by the product issuer:

(a) in respect of benefits defined under the SIS Regulations as a 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.

(9) 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 product issuer may rollover or transfer the holder's benefits to an eligible rollover fund.