Superannuation Industry (Supervision) Act 1993
PART 14
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OTHER PROVISIONS APPLYING TO SUPERANNUATION ENTITIES
SECTION 115
TRUSTEE OF SUPERANNUATION ENTITY MAY MAINTAIN RESERVES
115(1)
The trustee of a superannuation entity may maintain a reserve of the entity for a particular purpose, unless the governing rules of the entity prohibit the maintenance of a reserve for that purpose.
Governing rules of an RSE must not prohibit reserves to cover operational risk
115(2)
The governing rules of a registrable superannuation entity must not prohibit the maintenance of a reserve to cover the operational risk relating to the entity.
115(3)
If the governing rules of a registrable superannuation entity are inconsistent with subsection (2):
(a) subsection (2) prevails; and
(b) the governing rules are invalid, to the extent of the inconsistency.
The trustee of a superannuation entity may maintain a reserve of the entity for a particular purpose, unless the governing rules of the entity prohibit the maintenance of a reserve for that purpose.
Governing rules of an RSE must not prohibit reserves to cover operational risk
115(2)
The governing rules of a registrable superannuation entity must not prohibit the maintenance of a reserve to cover the operational risk relating to the entity.
115(3)
If the governing rules of a registrable superannuation entity are inconsistent with subsection (2):
(a) subsection (2) prevails; and
(b) the governing rules are invalid, to the extent of the inconsistency.
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