SUPERANNUATION INDUSTRY (SUPERVISION) ACT 1993

PART 25 - MONITORING AND INVESTIGATION  

Division 4 - Investigations by Regulator  

SECTION 264   POWER OF REGULATOR TO OBTAIN INFORMATION OR FREEZE ASSETS  

264(1)   Regulator may act to preserve values of interests.  

The Regulator may do any one or more of the things set out in subsections (2) to (4) if it appears to the Regulator that conduct that has been, is being, or is proposed to be, engaged in by a trustee or an investment manager of a superannuation entity is likely to:


(a) if the Regulator intends to do a thing set out in subsection (2) - adversely affect the values of the interests of beneficiaries; or


(b) otherwise - significantly adversely affect the values of the interests of the beneficiaries.

264(2)   [ Required information or report specified in written notice]  

The Regulator may, by written notice given to a person who is a relevant person in relation to the entity, require the person, within a stated period, to give to the Regulator or to an authorised person such information, or a report on such matters, relating to the affairs of the entity as are set out in the notice.

264(3)   [ Written directions to trustee]  

The Regulator may, by written notice given to a trustee, direct the trustee, or the trustees, of the entity, subject to such conditions (if any) as are stated in the notice:


(a) not to acquire assets on behalf of the entity; or


(b) not to dispose of, or otherwise deal, or deal in a particular way, in:


(i) any of the assets of the entity; or

(ii) any of the assets of the entity included in a specified class of assets; or

(iii) a specified asset or assets of the entity;

until the notice is revoked or for a period, or until the occurrence of an event, referred to in the notice.

Note:

For example, the Regulator may direct a trustee not to make any withdrawals from a bank account without prohibiting the making of deposits to the credit of the account.

264(3A)   [ Written directions to investment manager]  

The Regulator may, by written notice given to an investment manager of the entity, direct that person, subject to such conditions (if any) as are stated in the notice:


(a) not to acquire assets on behalf of the entity; or


(b) not to dispose of, or otherwise deal, or deal in a particular way, in:


(i) any of the assets of the entity; or

(ii) any of the assets of the entity included in a specified class of assets; or

(iii) a specified asset or assets of the entity;

until the notice is revoked or for a period, or until the occurrence of an event, referred to in the notice.

Note:

For example, the Regulator may direct an investment manager not to make any withdrawals from a bank account without prohibiting the making of deposits to the credit of the account.

264(4)   [ Directions to person other than trustee or investment manager]  

The Regulator may, by written notice given to a person (other than a trustee or an investment manager) who has possession, custody or control of an asset or assets of the entity, direct the person, subject to such conditions (if any) as are stated in the notice, not to dispose of, or otherwise deal, or deal in a particular way, in:


(a) if the person has possession, custody or control of a single asset - that asset; or


(b) if the person has possession, custody or control of 2 or more assets:


(i) any of those assets; or

(ii) any of those assets that are included in a specified class of assets; or

(iii) such of those assets as are identified in the notice;

until the notice is revoked or for a period, or until the occurrence of an event, referred to in the notice.

Note:

For example, the Regulator may direct a person not to make any withdrawals from a bank account without prohibiting the making of deposits to the credit of the account.

264(4A)   [ No removal of assets that are in Australia]  

To avoid any doubt, the power of the Regulator under subsection (3), (3A) or (4) to direct a person not to deal in a particular way in assets of an entity includes power to direct a person not to remove from Australia assets of the entity that are in Australia.

264(5)   Effect of direction on validity of transactions.  

Subsection (3), (3A) or (4) does not affect the validity of a transaction entered into by a person in contravention of a notice given under that subsection.

264(6)  
(Repealed by No 25 of 2008)




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