SUPERANNUATION INDUSTRY (SUPERVISION) ACT 1993

PART 24 - ELIGIBLE ROLLOVER FUNDS  

Division 2 - Authority to operate an eligible rollover fund  

Subdivision C - Cancelling authority  

SECTION 242J   CANCELLING AUTHORITY TO OPERATE ELIGIBLE ROLLOVER FUND  

242J(1)  
APRA may, in writing, cancel an authority to operate a regulated superannuation fund as an eligible rollover fund.

242J(2)  
Without limiting subsection (1), APRA may cancel an authority to operate a regulated superannuation fund as an eligible rollover fund if:


(a) APRA is no longer satisfied that, under the governing rules of the fund:


(i) the only purpose of the fund is to be a temporary repository for amounts transferred to the fund from other regulated superannuation funds in circumstances allowed by the RSE licensee law; and

(ii) a single diversified investment strategy is to be adopted in relation to all assets of the fund; or


(b) APRA is no longer satisfied that the RSE licensee is likely to comply with the enhanced trustee obligations for eligible rollover funds (whether because of a previous failure to do so, or for any other reason); or


(c) APRA is no longer satisfied that the directors of the RSE licensee are likely to comply with the enhanced director obligations for eligible rollover funds (whether because of a previous failure to do so, or for any other reason); or


(d) APRA is no longer satisfied that the RSE licensee is likely to comply with the general fees rules (whether because of a previous failure to do so, or for any other reason); or


(e) APRA is no longer satisfied that the RSE licensee is not likely to contravene section 242P (whether because of a previous contravention of that section, or for any other reason); or


(f) the fund ceases to be registered under Part 2B ; or


(g) the RSE licensee ceases to be of a class prescribed for the purposes of subsection 242A(1) ; or


(h) APRA is satisfied that the RSE licensee has contravened a provision of the governing rules of the eligible rollover fund; or


(i) APRA is satisfied that the RSE licensee has failed to give effect to an election made in accordance with section 242C (election not to pass costs of conflicted remuneration to members of eligible rollover fund).

242J(3)  
If APRA cancels an authority to operate a regulated superannuation fund as an eligible rollover fund it must take all reasonable steps to ensure that the RSE licensee is given a notice informing the RSE licensee:


(a) that APRA has cancelled the authority; and


(b) of the reasons for the cancellation.


 

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