Superannuation Industry (Supervision) Amendment Regulations 2002 (No. 3) (150 of 2002)

Schedule 1   Amendments

[9]   After Part 4

insert

Part 4A Child accounts

Division 4A.1 Preliminary

4A.01 Operating standards

For subsection 31 (1) of the Act, a requirement set out in this Part is a standard applicable to the operation of a regulated superannuation fund.

4A.02 Definition for Part 4A

In this Part:

child means an individual who is under age 18.

Division 4A.2 Decisions about child accounts

4A.03 Decisions about accounts

(1) If a child account is issued in respect of a child, decisions in relation to the account must be made by:

(a) the legal personal representative of the child; or

(b) if the child does not have a legal personal representative, a parent of the child or the child's guardian;

until the child turns 18.

(2) However, a child may make decisions in relation to the account if:

(a) the child is at least 16 years old; and

(b) the fund has been notified that the child will be making decisions in relation to the account by:

(i) the child's legal personal representative; or

(ii) if the child does not have a legal personal representative, a parent of the child or the child's guardian.

Division 4A.3 Transitional arrangements

4A.04 Application of Division 3

This Division applies to a financial product that is a child account issued during the transition period for the product under section 1438 of the Corporations Act 2001.

Note Section 1438 of the Corporations Act 2001 applies to all financial products issued by a person, other than financial products in a class of products that are first issued by the person after the FSR commencement. Subsection 1438 (3) of the Corporations Act 2001 provides that the new product disclosure provisions do not apply in relation to a financial product to which that section applies during the period mentioned in that subsection (the transition period ). The new product disclosure provisions are set out in subsection 1438 (2).

4A.05 Definitions for Division 3

In this Division:

eligible application , in relation to the issue of a child account, has the meaning given by regulation 4A.06.

FSR commencement has the same meaning as in section 1410 of the Corporations Act 2001.

Note The FSR commencement is the commencement of item 1 of Schedule 1 to the Financial Services Reform Act 2001.

old Regulations means these Regulations as in force immediately before the FSR commencement.

old SIS Act means the Act as in force immediately before the FSR commencement.

4A.06 Eligible applications

(1) In this Division, an eligible application , for a child account issued by a public offer superannuation fund, means an application that satisfies the following requirements:

(a) the application complies with paragraphs 153 (3) (a) and (b) of the old SIS Act;

(b) when the person making the application received the form mentioned in paragraph 153 (3) (b) of the old SIS Act, the person also received the additional information (if any) and the additional documents (if any) that would, under paragraph 153 (3) (c) of the old SIS Act, have been received by the applicant under that paragraph before the FSR commencement;

(c) the application includes evidence that:

(i) the child's legal personal representative has consented to the opening of the child account; or

(ii) if the child does not have a legal personal representative, a parent of the child, or the child's guardian, has consented to the opening of the child account;

(d) the application includes the name and address of the legal personal representative, parent or guardian;

(e) the application includes the name, address and date of birth of the child.

(2) In this Division, an eligible application , for a child account issued by a regulated superannuation fund that is not a public offer superannuation fund, means an application that satisfies the following requirements:

(a) the person making the application has been given the information that would, under regulations 2.15 and 2.16 of the old Regulations, have been given to a person who became a member of a fund of that type before the FSR commencement;

(b) the application includes evidence that:

(i) the child's legal personal representative has consented to the opening of the child account; or

(ii) if the child does not have a legal personal representative, a parent of the child, or the child's guardian, has consented to the opening of the child account;

(c) the application includes the name and address of the legal personal representative, parent or guardian;

(d) the application includes the name, address and date of birth of the child.

4A.07 Issue of child accounts

(1) The trustee of a regulated superannuation fund that is a self managed superannuation fund must not issue a child account to a person unless:

(a) the person making the application is the child's legal personal representative, a parent of the child or the child's guardian; or

(b) the child account is issued as a result of an eligible application.

(2) The trustee of a regulated superannuation fund (other than a self managed superannuation fund) must not issue a child account to a person unless the child account is issued as a result of an eligible application.