Superannuation Industry (Supervision) Act 1993

PART 20 - ADMINISTRATIVE DIRECTIONS AND PENALTIES FOR CONTRAVENTIONS RELATING TO SELF MANAGED SUPERANNUATION FUNDS  

Division 2 - Directions  

SECTION 159   RECTIFICATION DIRECTION  

159(1)  
This section applies if the Regulator reasonably believes that a person who is:


(a) a trustee of a self managed superannuation fund; or


(b) a director of a body corporate that is a trustee of a self managed superannuation fund;

has contravened a provision of this Act (other than Part 3B ) or the regulations in relation to the fund.

159(2)  
The Regulator may give the person a written direction (a rectification direction ) requiring the person:


(a) to take specified action to rectify the contravention; and


(b) to provide the Regulator with evidence of the person ' s compliance with the direction.

159(3)  
In deciding whether to give a person a rectification direction, the Regulator is to have regard to:


(a) any financial detriment that might reasonably be expected to be suffered by the fund as a result of the person ' s compliance with the direction; and


(b) the nature and seriousness of the person ' s contravention; and


(c) any other relevant circumstances.

159(4)  
A rectification direction must specify the period within which the person must comply with the direction (which must be a period that is reasonable in the circumstances).

Note:

The period may be affected by the operation of subsection 164(7) .

159(5)  
The Regulator must not give a rectification direction in relation to a contravention if:


(a) the Regulator has, under section 262A , accepted an undertaking given by a person; and


(b) the contravention is covered by the undertaking; and


(c) the undertaking has neither been withdrawn nor varied in a way that means the contravention is no longer covered by it.

159(6)  
A person to whom a rectification direction is given must comply with the direction before the end of the period specified in the direction for the purposes of subsection (4).

159(7)  
A person commits an offence of strict liability if the person contravenes subsection (6).

Penalty: 10 penalty units.


 

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