Superannuation Industry (Supervision) Act 1993
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).
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(c) the undertaking has neither been withdrawn nor varied in a way that means the contravention is no longer covered by it. 159(6)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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