Retirement Savings Accounts Amendment Regulations 2002 (No. 4) (149 of 2002)

Schedule 1   Amendments

[2]   After Part 2

insert

Part 2A Child accounts

Division 2A.1 Preliminary

2A.01 Operating standards

For subsection 38 (1) of the Act, a requirement of this Part is a standard applicable to the operation of RSAs.

2A.02 Definition for Part 2A

In this Part:

child means an individual who is under age 18.

Division 2A.2 Decisions about child accounts

2A.03 Decisions about accounts

(1) If a child account is issued in respect of a child, decisions in relation to the account must be made by:

(a) the legal personal representative of the child; or

(b) if the child does not have a legal personal representative, a parent of the child or the child's guardian;

until the child turns 18.

(2) However, a child may make decisions in relation to the account if:

(a) the child is at least 16 years old; and

(b) the fund has been notified that the child will be making decisions in relation to the account by:

(i) the child's legal personal representative; or

(ii) if the child does not have a legal personal representative, a parent of the child or the child's guardian.

Division 2A.3 Transitional arrangements

2A.04 Application of Division 3

This Division applies to a financial product that is a child account issued during the transition period for the product under section 1438 of the Corporations Act 2001.

Note Section 1438 of the Corporations Act 2001 applies to all financial products issued by a person, other than financial products in a class of products that are first issued by the person after the FSR commencement. Subsection 1438 (3) of the Corporations Act 2001 provides that the new product disclosure provisions do not apply in relation to a financial product to which that section applies during the period mentioned in that subsection (the transition period ). The new product disclosure provisions are set out in subsection 1438 (2).

2A.05 Definitions for Division 3

In this Division:

eligible application , in relation to the issue of a child account, has the meaning given in regulation 2A.06.

FSR commencement has the same meaning as in section 1410 of the Corporations Act 2001.

Note The FSR commencement is the commencement of item 1 of Schedule 1 to the Financial Services Reform Act 2001.

old RSA Act means the Act as in force immediately before the FSR commencement.

2A.06 Eligible applications

In this Division, an eligible application means an application that satisfies the following requirements:

(a) the application complies with paragraphs 51 (2) (a) and (b) of the old RSA Act;

(b) when the person making the application received the form mentioned in paragraph 51 (2) (b) of the old RSA Act, the person also received the additional information (if any) and the additional documents (if any) that would, under paragraph 51 (2) (c) of the old RSA Act, have been received by the holder of an account under that paragraph if the application was made by the person who would be the holder of the RSA before the FSR commencement;

(c) the application includes evidence that:

(i) the child's legal personal representative has consented to the opening of the child account; or

(ii) if the child does not have a legal personal representative, a parent of the child, or the child's guardian, has consented to the opening of the child account;

(d) the application includes the name and address of the legal personal representative, parent or guardian;

(e) the application includes the name, address and date of birth of the child.

2A.07 Issue of child accounts

An RSA institution must not issue a child account to a person unless the child account is issued as a result of an eligible application.