Source: https://www.legislation.gov.au/Details/C2019A00040
Timestamp: 2019-10-23 10:52:28
Document Index: 697821726

Matched Legal Cases: ['art 2', 'art 16', 'arts 14', 'art 16', 'art 16', 'art 16', 'art 10', 'art 10', 'art 2']

Details: C2019A00040
- C2019A00040
Act No. 40 of 2019 as made
Originating Bill: Treasury Laws Amendment (Improving Accountability and Member Outcomes in Superannuation Measures No. 1) Bill 2017
C2019A00040
Schedule 1—Annual outcomes assessment 4
Schedule 2—Authority to offer a MySuper product 9
Schedule 3—Penalties for contravening covenants 11
Superannuation Industry (Supervision) Act 1993 11
Schedule 4—Approval to own or control an RSE licensee 14
Schedule 5—APRA directions power 26
Schedule 6—Portfolio holdings disclosure 42
Corporations Act 2001 42
Schedule 7—Annual members’ meetings 47
Superannuation Industry (Supervision) Act 1993 47
Schedule 8—Reporting standards 55
Australian Prudential Regulation Authority Act 1998 55
Financial Sector (Collection of Data) Act 2001 55
Schedule 9—Superannuation trustees not to incentivise employers 59
Superannuation Industry (Supervision) Act 1993 59
This Act is the Treasury Laws Amendment (Improving Accountability and Member Outcomes in Superannuation Measures No. 1) Act 2019.
3 months after the day on which this Act receives the Royal Assent.
4. Schedules 5, 6, 7, 8 and 9
1A Subsection 10(1) (after the definition of authorised person)
benchmark means a benchmark mentioned in, or specified in regulations made for the purposes of, subparagraphs 52(9)(a)(i) and (ii) and paragraph 52(9)(aa).
1AA Subsection 10(1) (after the definition of Commissioner)
1 Subsection 10(1) (subparagraph (a)(i) of the definition of enhanced director obligations)
2 Subsection 10(1) (subparagraph (a)(i) of the definition of enhanced trustee obligations)
Omit “, as enhanced by the obligations imposed under section 29VN”.
3 Subsection 10(1) (definition of superannuation entity director)
Omit “29VO(3)”, substitute “52A(7)”.
Omit “, and each obligation referred to in sections 29VN and 29VO,”.
(i) if the product is a MySuper product—a comparison of the MySuper product with other MySuper products offered by other regulated superannuation funds, based on the factors mentioned in subsection (10), and a comparison of the MySuper product with any other benchmarks specified in regulations made for the purposes of this subparagraph; and
(aa) to determine, in writing, on an annual basis, whether each trustee of the entity is promoting the financial interests of the beneficiaries of the fund, as assessed against benchmarks specified in regulations made for the purposes of this paragraph;
(a) to include in the investment strategy for the MySuper product the details of the trustee’s determination of the matters mentioned in paragraph (9)(a);
Omit “, and all of the obligations referred to in sections 29VN and 29VO,”.
Omit “, section 29VP”.
11 Paragraph 323(1)(b)
Schedule 2—Authority to offer a MySuper product
1 Paragraphs 29T(1)(h), (ha), (i) and (j)
(i) where the RSE licensee is a body corporate—APRA has no reason to believe that the directors of the RSE licensee may fail to comply with the enhanced director obligations for MySuper products; and
2 Paragraphs 29U(2)(c), (ca), (d) and (e)
(c) APRA has reason to believe that:
may not comply with the enhanced trustee obligations for MySuper products (whether because of a previous failure to do so, or for any other reason); or
(ca) where the RSE licensee is a body corporate—APRA has reason to believe that the directors of the RSE licensee may not comply with the enhanced director obligations for MySuper products (whether because of a previous failure to do so, or for any other reason); or
(d) APRA has reason to believe that:
(e) APRA has reason to believe that:
may contravene section 29W, 29WA or 29WB (whether because of a previous contravention of that section, or for any other reason); or
The amendment made by item 1 of this Schedule applies where an entity applies to APRA on or after the day on which this Schedule commences for authority to offer a class of beneficial interest in a regulated superannuation fund as a MySuper product.
Omit “contravention of subsection (1)”, substitute “contravention of subsection 54B(1), 54B(2) or 54C(1)”.
5 Paragraph 55(4A)(a)
Omit “contravened subsection (1)”, substitute “contravened subsection 54B(2) or 54C(1)”.
Omit “2,000”, substitute “2,400”.
Schedule 4—Approval to own or control an RSE licensee
controlling stake: a person holds a controlling stake in an RSE licensee that is a body corporate if the person holds a stake of more than 15% in the RSE licensee.
practical control of an RSE licensee that is a body corporate has the meaning given by section 131EC.
2 Subsection 10(1) (after paragraph (dl) of the definition of reviewable decision)
3 Subsection 10(1) (after paragraph (taab) of the definition of reviewable decision)
stake in an RSE licensee that is a body corporate, has the same meaning as in the Financial Sector (Shareholdings) Act 1998.
5 Paragraph 29E(1)(f)
6 Subsection 29E(2)
Omit “change in the composition of the RSE licensee”, substitute “change in the composition or control of the RSE licensee”.
7 Paragraph 29E(2)(a)
(ii) a person’s stake in the RSE licensee changing; or
8 After Division 7 of Part 2A
Division 8—Approval to hold a controlling stake in an RSE licensee
29H Application
Subdivision B—Applying for approval
29HA Application for approval to hold a controlling stake
(1) A person may apply to APRA for approval to hold a controlling stake in an RSE licensee.
29HB APRA may request further information
29HC Period for deciding applications for approval
(1) APRA must decide an application by a person for approval to hold a controlling stake in an RSE licensee:
(b) if the applicant was requested to provide information under section 29HB—within 90 days after:
(2) APRA may extend the period for deciding an application by a person for approval to hold a controlling stake in an RSE licensee by up to 30 days if APRA informs the person of the extension:
(3) If APRA extends the period for deciding the application, it must decide the application within the extended period.
(4) If APRA has not decided an application for approval to hold a controlling stake in an RSE licensee by the end of the period by which it is required to decide the application, APRA is taken to have decided, at the end of the last day of that period, to refuse the application.
Subdivision C—Approval
29HD Approval to hold a controlling stake in an RSE licensee
(a) the application for approval complies with section 29HA; and
(c) APRA has no reason to believe that, because of the person’s controlling stake in the RSE licensee, or the way in which that controlling stake is likely to be used, the RSE licensee may be unable to satisfy one or more of the trustee’s obligations contained in a covenant set out in sections 52 to 53, or prescribed under section 54A.
29HE Notice of approval
29HF APRA to give notice of refusal of approval
If APRA refuses an application by a person for approval to hold a controlling stake in an RSE licensee, APRA must take all reasonable steps to ensure that the person is given a notice:
9 After section 29JCA
29JCB Holding a controlling stake in an RSE licensee without approval
(a) the person holds a controlling stake in an RSE licensee; and
Penalty: 400 penalty units for each day on which the person holds a controlling stake in the RSE licensee without approval.
10 After Division 1 of Part 16A
Division 2—Directions to relinquish control over an RSE licensee
131E Object of this Division
131EA Application of this Division
This Division applies in relation to an RSE licensee that is a body corporate.
131EB Direction to relinquish control
(1) The Regulator may give a person a direction to relinquish control of an RSE licensee if:
(i) the person’s controlling stake, or practical control, of the RSE licensee; or
the RSE licensee has been, is or is likely to be unable to satisfy one or more of the trustee’s obligations contained in a covenant set out in sections 52 to 53, or prescribed under section 54A.
(2) The Regulator may give a person a direction to relinquish control of an RSE licensee if:
(3) The Regulator may give a person a direction to relinquish control of an RSE licensee if:
(4) To avoid doubt, a direction under subsection (1) or (3) to a person to relinquish a controlling stake in an RSE licensee may be given even if the person has approval to hold a controlling stake in the RSE licensee.
(5) The direction must be given in writing.
(6) The Regulator must give the person:
(b) a statement of the Regulator’s reasons for giving the direction.
(7) The Regulator may revoke a direction to relinquish control of an RSE licensee.
(8) The revocation must be in writing and a copy of the revocation must be given to the person.
131EC Meaning of practical control
A person has practical control over an RSE licensee that is a body corporate if:
(i) the directors of the RSE licensee are accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the person (either alone or together with associates);
(ii) the person (either alone or together with associates) is in a position to exercise control over the RSE licensee; and
(b) the person does not hold a controlling stake in the RSE licensee.
131ED Consequences of a direction to relinquish control
(1) If the Regulator gives a person a direction to relinquish control over an RSE licensee, the person must take such steps as are necessary to ensure that:
(b) if the Regulator, by written notice given to the person, allows a longer period for compliance—before the end of that longer period.
Note: Section 4K (Continuing and multiple offences) of the Crimes Act 1914 applies to an offence under subsection (3), so a person commits an offence, after the period for relinquishment expires, on each day on which the person does not relinquish control.
131EE Interim orders
Orders where the direction is stayed by the Administrative Appeals Tribunal
(1) The Regulator may apply to the Federal Court of Australia (the Federal Court) for orders under subsection (2) if:
(a) the Regulator has given a direction to relinquish control over an RSE licensee to a person; and
(b) an application has been made to the Administrative Appeals Tribunal for a review of the decision to give the direction; and
(c) the Tribunal has made an order or orders staying or otherwise affecting the operation or implementation of the decision to give the direction, or a part of that decision.
(2) The Federal Court may make such orders as the court considers appropriate to ensure that the person does not, during the period to which an order of the Tribunal relates, exercise control over the RSE licensee in a manner that results in the RSE licensee being unable to satisfy one or more of the trustee’s obligations contained in a covenant set out in sections 52 to 53, or prescribed under section 54A.
Orders to deal with conduct during the compliance period
(3) The Regulator may apply to the Federal Court of Australia (the Federal Court) for orders under subsection (4) if:
(a) a direction to relinquish control over an RSE licensee is in force in relation to a person; and
(b) the Regulator has reason to believe that the person may, during the period under subsection 131ED(2) during which the person is required to take steps under the direction (the compliance period), exercise control over the RSE licensee in a manner that results in the RSE licensee being unable to satisfy one or more of the trustee’s obligations contained in a covenant set out in sections 52 to 53, or prescribed under section 54A.
(4) The Federal Court may make such orders as the court considers appropriate to ensure that the person does not, during the compliance period, exercise control over the RSE licensee in a manner that results in the RSE being unable to satisfy one or more of the trustee’s obligations contained in a covenant set out in sections 52 to 53, or prescribed under section 54A.
131EF Remedial orders
(1) The Regulator may apply to the Federal Court of Australia (the Federal Court) for orders under this section if a direction to relinquish control over an RSE licensee is in force in relation to a person.
(2) The Federal Court may make such orders as the court considers appropriate to ensure that:
(3) However, the Federal Court may only make orders under this section if the court is satisfied that:
(ii) because of the person’s control of the RSE licensee, or the way in which that control has been, is or is likely to be exercised, the RSE licensee has been, is or is likely to be unable to satisfy one or more of the trustee’s obligations contained in a covenant set out in sections 52 to 53, or prescribed under section 54A; or
(4) The Federal Court’s orders include:
(5) Subsection (4) does not, by implication, limit subsection (2).
(6) In addition to the Federal Court’s powers under subsections (2) and (4), the court:
(7) The Federal Court may, before making an order under this section, direct that notice of the Regulator’s application be given to such persons as it thinks fit or be published in such manner as it thinks fit, or both.
(8) The Federal Court may, by order, rescind, vary or discharge an order made by it under this section or suspend the operation of such an order.
11 At the end of subsection 133(1)
; or (f) the Regulator has reason to believe that:
12 After paragraph 223A(1)(a)
(aa) subsection 29JCB(1);
(2) For the purposes of the Superannuation Industry (Supervision) Act 1993, the person is taken to have approval under section 29HD to hold a controlling stake in the RSE licensee during the period:
(b) ending when the period during which the person holds a controlling stake in the RSE licensee is broken.
15 Holding a controlling stake without approval
Section 29JCB of the Superannuation Industry (Supervision) Act 1993, as inserted by item 9 of this Schedule, applies where a person begins to hold a controlling stake in an RSE licensee on or after the day that is 3 months after the commencement day.
Schedule 5—APRA directions power
1 Section 4 (after table item dealing with Part No. 16)
APRA’s powers to issue directions
2 Subparagraph 6(1)(a)(vii)
(vii) Parts 14 to 16A.
2A Subsection 10(1) (definition of connected entity)
(a) an associated entity (within the meaning of the Corporations Act 2001) of the RSE licensee; and
(b) if the RSE licensee is a group of individual trustees—an entity that has the capacity to determine or influence decisions made by one or more members of the group in relation to the registrable superannuation entity; and
3 Subsection 10(1) (after paragraph (ta) of the definition of reviewable decision)
(taaa) a decision of APRA to give a direction under subsection 131D(1), 131DA(1) or 131DA(3); or
(taab) a decision of APRA to vary a direction under subsection 131DC(1); or
4 Subsection 29E(1) (note 1)
Omit “(see section 29EB)”, substitute “(see Division 1 of Part 16A)”.
5 Subsection 29EA(2) (note 1)
6 Section 29EB
7 Paragraphs 29G(2)(e) and (f)
Omit “under section 29EB”, substitute “under subsection 131D(1) or 131DA(1)”.
8 Section 29JB
9 Section 29JD
Omit “29JB”, substitute “131DD”.
10 Subsection 29K(2) (note)
Omit “(see section 29EB)”, substitute “(see paragraph 131D(2)(b))”.
11 After Part 16
Part 16A—APRA’s powers to issue directions
Division 1—General powers to issue directions
131D APRA may give directions to an RSE licensee in relation to licensee’s own conduct
(1) APRA may give an RSE licensee a direction of a kind mentioned in subsection (2) if APRA has reason to believe that:
(a) the RSE licensee has contravened a provision of:
(ii) the Financial Sector (Collection of Data) Act 2001; or
(b) the RSE licensee is likely to contravene a provision mentioned in paragraph (a), and the direction is reasonably necessary to deal with one or more prudential matters in relation to the RSE licensee; or
(c) the RSE licensee has contravened a condition or direction under this Act or the Financial Sector (Collection of Data) Act 2001; or
(ca) the RSE licensee, or the registrable superannuation entity of the RSE licensee, has failed to meet a benchmark that relates to the licensee or entity; or
(d) the direction is necessary in the interests of beneficiaries of a registrable superannuation entity of the RSE licensee; or
(e) the RSE licensee is, or is about to become, unable to meet its liabilities (whether as trustee of a registrable superannuation entity or otherwise); or
(f) there is, or there might be, a material risk to the security of the assets of the RSE licensee (whether held as trustee of a registrable superannuation entity or otherwise); or
(g) there has been, or there might be, a material deterioration in the financial condition of:
(ii) a registrable superannuation entity of which it is trustee; or
(h) the RSE licensee is conducting:
(i) its affairs; or
(ii) the affairs of a registrable superannuation entity of which it is trustee;
in an improper or financially unsound way; or
(i) the failure to issue a direction would materially prejudice the interests or reasonable expectations of beneficiaries of a registrable superannuation entity of the RSE licensee; or
(j) the RSE licensee is conducting:
in a way that may cause or promote instability in the Australian financial system.
(2) APRA may give a direction to do one or more of the following:
(ii) the Financial Sector (Collection of Data) Act 2001;
(b) to comply with the whole or a part of a condition or direction referred to in paragraph (1)(c);
(c) if the RSE licensee is a body corporate, to do one or more of the following:
(i) to remove a responsible officer of the RSE licensee from office;
(ii) to ensure that a responsible officer of the RSE licensee does not take part in the management or conduct of the business of the RSE licensee, or the business of a registrable superannuation entity of the RSE licensee, except as permitted by APRA;
(iii) to appoint a person as a responsible officer of the RSE licensee for such term as APRA directs;
(d) to order an audit of:
(i) the affairs of the RSE licensee; or
at the expense of the RSE licensee, by an auditor chosen by APRA;
(e) to remove an auditor of the RSE licensee, or of a registrable superannuation entity of the RSE licensee, from office and appoint another auditor to hold office for such term as APRA directs;
(f) to order an actuarial investigation of the affairs of a registrable superannuation entity of the RSE licensee, at the expense of the RSE licensee and by an actuary chosen by APRA;
(g) to remove an actuary of a registrable superannuation entity of the RSE licensee from office and appoint another actuary to hold office for such term as APRA directs;
(h) not to accept, or to cease to accept (permanently or temporarily), contributions to a registrable superannuation entity of the RSE licensee;
(j) not to pay or transfer any amount or asset to any person, or create an obligation (contingent or otherwise) to do so;
(k) not to undertake any financial obligation (contingent or otherwise) on behalf of any other person;
(l) not to discharge any liability of:
(m) to make changes to the RSE licensee’s systems, business practices or operations (including the RSE licensee’s systems business practices or operations in relation to a registrable superannuation entity of the RSE licensee);
(n) to do, or refrain from doing, anything else in relation to the affairs of:
(3) A direction under paragraph (2)(j) not to pay or transfer any amount or asset does not apply to the payment or transfer of money pursuant to an order of a court or a process of execution.
(4) Without limiting the generality of subsection (2), a direction referred to in a paragraph of that subsection may:
131DA APRA may give directions in relation to the conduct of a connected entity of an RSE licensee
(1) APRA may give an RSE licensee a direction of a kind mentioned in subsection (5), or a direction to cause a connected entity of the RSE licensee to do or not to do something of a kind mentioned in subsection (5), if APRA has reason to believe that:
(d) a connected entity of the RSE licensee is, or is about to become, unable to meet the connected entity’s liabilities; or
(g) a connected entity of the RSE licensee is conducting the entity’s affairs in an improper or financially unsound way; or
(h) a connected entity of the RSE licensee is conducting the entity’s affairs in a way that may cause or promote instability in the Australian financial system; or
(i) a connected entity of the RSE licensee is conducting the entity’s affairs in a way that may cause it to be unable to continue to supply products or services to the RSE licensee, or a registrable superannuation entity of the RSE licensee; or
(2) However, APRA can only make a direction under subsection (1) as a result of a ground referred to in paragraph (1)(d), (e), (f), (g), (h) or (i) if APRA considers that the direction is reasonably necessary to ensure that the RSE licensee’s duties as trustee of a registrable superannuation entity are properly performed.
(3) APRA may give a connected entity of an RSE licensee a direction of a kind mentioned in subsection (5) if:
(4) APRA cannot give a direction under subsection (3) to a connected entity of a kind specified in regulations (if any) made for the purposes of this subsection.
(5) APRA may give a direction to do one or more of the following:
(k) to make changes to the connected entity’s systems, business practices or operations (including the connected entity’s systems, business practices or operations in relation to a registrable superannuation entity of the RSE licensee);
(6) A direction under paragraph (5)(h) not to pay or transfer any amount or asset does not apply to the payment or transfer of money pursuant to an order of a court or a process of execution.
(7) Without limiting the generality of subsection (5), a direction referred to in a paragraph of that subsection may:
(8) The direction may deal with the time by which, or period during which, it is to be complied with.
131DB Machinery provisions relating to directions under this Division
(1) A direction under this Division must:
(i) in the case of a direction to an RSE licensee under subsection 131D(1) or 131DA(1)—to the RSE licensee; and
(ii) in the case of a direction to a connected entity of an RSE licensee under subsection 131DA(3)—to the connected entity of the RSE licensee and the RSE licensee; and
(i) in the case of a direction under subsection 131DA(3)—the ground referred to in subsection 131DA(1) as a result of which the direction is given; or
(ii) otherwise—the ground referred to in subsection 131D(1) or 131DA(1) as a result of which the direction is given.
(2) A direction under this Division is not a legislative instrument.
Note: Under paragraph 11(2)(c) of the Legislation Act 2003, APRA may register a direction under this Division as a notifiable instrument.
(3) In deciding whether to give a direction under subsection 131D(1) to an RSE licensee, APRA may disregard any external support for the RSE licensee.
(4) In deciding whether to give a direction under subsection 131DA(1) or (3), APRA may disregard any external support for the RSE licensee, or the connected entity of the RSE licensee, in relation to which the direction is given.
(5) The regulations may specify that a particular form of support is not external support for the purposes of subsection (3) or (4).
131DC Varying or revoking a direction under this Division
(1) APRA may:
(a) vary a direction given to an RSE licensee under this Division, by notice in writing to the RSE licensee; or
(b) vary a direction given to a connected entity of an RSE licensee under this Division, by notice in writing to the connected entity and the RSE licensee;
if, at the time of the variation, APRA considers that the variation is necessary and appropriate.
(2) A direction under this Division has effect until APRA revokes it.
(3) APRA may:
(a) revoke a direction given to an RSE licensee under this Division, by notice in writing to the RSE licensee; or
(b) revoke a direction given to a connected entity of an RSE licensee under this Division, by notice in writing to the connected entity and the RSE licensee;
if, at the time of revocation, APRA considers that the direction is no longer necessary or appropriate.
131DD Non‑compliance with a direction
Failure to comply with a direction given to an RSE licensee—failure by the RSE licensee
(a) the person is an RSE licensee or a member of a group of individual trustees that is an RSE licensee; and
(b) a direction is given to the RSE licensee under this Division; and
(c) the RSE licensee does, or fails to do, something; and
(d) doing, or failing to do, the thing results in a contravention of the direction.
Note: If a body corporate is convicted of an offence against this subsection, subsection 4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the penalty stated above.
Failure to comply with a direction given to an RSE licensee—failure by an officer of the RSE licensee
(a) the person is an officer of an RSE licensee that is a body corporate; and
(b) the officer fails to take reasonable steps to ensure that the RSE licensee complies with a direction given to it under this Division; and
(c) the officer’s duties include ensuring that the RSE licensee complies with the direction or with a class of directions that includes the direction; and
(d) the RSE licensee does not comply with the direction.
Failure to comply with a direction given to a connected entity of an RSE licensee—failure by the connected entity
(3) A connected entity of an RSE licensee commits an offence if:
(a) a direction is given to the connected entity under this Division; and
(b) the connected entity does, or fails to do, something; and
(c) doing, or failing to do, the thing results in a contravention of the direction.
Failure to comply with a direction given to a connected entity of an RSE licensee—failure by an officer of the connected entity
(a) the person is an officer of a body corporate that is a connected entity of an RSE licensee; and
(b) the officer fails to take reasonable steps to ensure that the connected entity complies with a direction given to it under this Division; and
(c) the officer’s duties include ensuring that the connected entity complies with the direction or with a class of directions that includes the direction; and
(d) the connected entity fails to comply with the direction.
Offence for each day on which a person continues to commit an offence
(5) If a person commits an offence against subsection (1), (2), (3) or (4), the person commits an offence against that subsection in respect of:
(6) Subsections (1), (2), (3) and (4) are offences of strict liability.
(7) In this section, officer has the meaning given by section 9 of the Corporations Act 2001.
Division 3—Provisions relating to all directions under this Act
131F APRA may give more than one direction
(1) APRA is not precluded from giving a direction under a provision of this Act because APRA has given, or may give, another direction under that or any other provision of this Act.
(2) The kinds of direction that may be given under one provision of this Act are not limited by any direction given, or that may be given, under that or any other provision of this Act.
131FA RSE licensee and connected entity have power to comply with a direction under this Act
(1) An RSE licensee has power to comply with a direction given to the RSE licensee under this Act despite anything in its constitution or any contract or arrangement to which it is a party.
(2) If the direction requires the RSE licensee to cause a connected entity to do, or not to do, something:
despite anything in the connected entity’s constitution or any contract or arrangement to which the connected entity is a party.
(3) A connected entity of an RSE licensee has power to comply with a direction given to the connected entity under this Act despite anything in its constitution or any contract or arrangement to which it is a party.
131FB Protection from liability—general
(2) To avoid doubt, any information provided by a person to APRA under section 130A is taken, for the purposes of subsection (1), to be provided in the exercise of a power or the performance of a function under this Act.
131FC Protection from liability—directions
(a) the person does the thing, or omits to do the thing, for the purpose of complying with a direction under this Act given by APRA to an RSE licensee, or a connected entity of an RSE licensee; and
(i) an officer of the RSE licensee, or of the connected entity of the RSE licensee;
(ii) an employee or agent of the RSE licensee, or of the connected entity of the RSE licensee.
(a) of an RSE licensee, includes a person engaged to provide advice or services to the RSE licensee; or
(b) of a connected entity of an RSE licensee, includes a person engaged to provide advice or services to the connected entity.
131FD Protection from liability—provisions do not limit each other
(a) section 336B;
(b) section 131FB;
(c) section 131FC;
(d) section 58 of the Australian Prudential Regulation Authority Act 1998.
131FE Informing the Treasurer about issue and revocation of directions
(1) If the Treasurer requests APRA to provide information about:
(2) APRA may provide any information that it considers appropriate to the Treasurer about:
(3) If APRA provides the Treasurer with information about a direction and then later revokes the direction, APRA must notify the Treasurer of the revocation of the direction as soon as practicable after the revocation. Failure to notify the Treasurer does not affect the validity of the revocation.
12 After subsection 349B(6)
(6A) If, apart from this section, this Act would result in such an acquisition of property because it would require a person to comply with a direction given under this Act, then despite any other provision of this Act, the person is not required to comply with the direction in circumstances that would result in such an acquisition.
13 At the end of subsection 349B(7)
; and (f) a direction given under this Act.
The amendments made by this Schedule apply to events that occur, and anything that a person does or fails to do, on or after the commencement of this Schedule.
1 Subsection 1017BB(1)
(1) The trustee, or the trustees, of a registrable superannuation entity (the reporting entity) must make the following information about each of the entity’s investment options publicly available on the entity’s website no later than 90 days after each reporting day:
(1A) However, the regulations may provide that subsection (1) applies for a prescribed kind of disclosable item so that:
2 Subsections 1017BB(4) and (5)
(4) Subsection (1) does not apply to the trustee, or the trustees, of a registrable superannuation entity if the entity is:
(5) Subsection (1) does not apply to the trustee, or the trustees, of a registrable superannuation entity for:
(c) an investment item invested solely to support a defined benefit interest (within the meaning of the Income Tax Assessment Act 1997); or
(d) an investment item invested in a life policy, or investment account contract, of a kind described in subparagraph 1017BA(4)(a)(i), (ii) or (iii); or
(5A) Subject to subsection (1A), subsection (1) does not apply to the trustee, or the trustees, of a registrable superannuation entity for up to 5% of the investment items (other than derivatives) referred to in paragraph (1)(a) for the investment option if:
(b) making information publicly available about those investment items would be detrimental to the interests of the entity’s members.
3 Subsection 1017BB(6)
investment item means an asset or a derivative.
member, in relation to a superannuation fund (within the meaning of the Superannuation Industry (Supervision) Act 1993), has the same meaning as in that Act.
small APRA fund means a regulated superannuation fund (within the meaning of the Superannuation Industry (Supervision) Act 1993) with less than 5 members.
4 Sections 1017BC, 1017BD and 1017BE
5 Paragraph 1020E(1)(c)
Omit “, or provided under subsection 1017BC(3),”.
6 Subsection 1020E(11) (paragraph (d) of the definition of defective)
Omit “or information provided under section 1017BC”.
7 Section 1021NC
8 Subparagraph 1022B(1)(g)(iii)
9 Paragraph 1022B(1)(h)
10 Paragraph 1022B(2)(f)
Omit “, (g) or (h)”, substitute “or (g)”.
11 Paragraph 1022B(3)(f)
12 Paragraph 1022B(3)(g)
13 Subsection 1022B(7B)
Omit “, (g)(ii) or (h)(ii)”, substitute “or (g)(ii)”.
14 Subsection 1022B(7C)
Omit “, (g)(iii) or (h)(iii)”, substitute “or (g)(iii)”.
15 Subparagraph 1041H(3)(a)(iii)
Omit “, 1021NB or 1021NC”, substitute “or 1021NB”.
16 Subparagraph 1041K(1)(a)(iii)
17 Section 1540
Omit “30 June 2014”, substitute “31 December 2019”.
18 Section 1541
19 After Part 10.22 of Chapter 10
Part 10.22A—Transitional provisions relating to the Treasury Laws Amendment (Improving Accountability and Member Outcomes in Superannuation Measures No. 1) Act 2019
1541A Application of amendments relating to portfolio holdings disclosure
The amendments of section 1017BB made by Schedule 6 to the Treasury Laws Amendment (Improving Accountability and Member Outcomes in Superannuation Measures No. 1) Act 2019 apply in relation to the reporting day that is 31 December 2019 and to later reporting days.
20 Schedule 3 (table items 308AG, 308AH and 308AI)
21 Section 38A (subparagraph (c)(ii) of the definition of regulatory provision)
Omit “(3);”, substitute “(3).”.
22 Section 38A (subparagraph (c)(iii) of the definition of regulatory provision)
1 Subparagraph 6(1)(a)(i)
Omit “and sections 29QB and 29QC”, substitute “and sections 29P to 29QC”.
2 Subparagraph 6(1)(c)(ia)
annual members’ meeting, for a registrable superannuation entity, means a meeting of members of the entity held under subsection 29P(1) for a year of income of the entity.
4 Division 5 of Part 2B (heading)
Division 5—RSE licensees must provide information about registrable superannuation entities
5 Before section 29QB
Subdivision A—Annual members’ meetings
29P Annual members’ meeting
RSE licensees must hold annual members’ meetings
(1) The RSE licensee of a registrable superannuation entity must hold an annual meeting of members of the entity for each year of income of the entity.
(2) The RSE licensee must give notice of the annual members’ meeting to each of the following:
(b) if the RSE licensee is a body corporate—all responsible officers of the body corporate;
(3) The RSE licensee must:
(i) the time and location of the annual members’ meeting; and
(ii) if the annual members’ meeting to be held by electronic means—details of how the meeting can be attended electronically; and
(iii) the agenda of matters to be discussed at the annual members’ meeting; and
(3A) Despite subsection 14(2) of the Legislation Act 2003, regulations made for the purposes of paragraph (3)(b) may make provision in relation to a matter by applying, adopting or incorporating (with or without modification) any matter contained in a reporting standard, made by APRA under the Financial Sector (Collection of Data) Act 2001, as in force or existing from time to time.
(4) The meeting must be held within 3 months after the notice of the meeting is given in accordance with subsections (2) and (3).
Conduct of an annual members’ meeting
(5) At the annual members’ meeting, the RSE licensee must give members of the registrable superannuation entity reasonable opportunities to ask questions about:
(b) if the RSE licensee is a body corporate—the RSE licensee and the responsible officers of the RSE licensee; and
(c) if the RSE licensee is a group of individual trustees—each of the individual trustees; and
(f) any information included with the notice of the meeting.
(6) The RSE licensee must ensure that:
(a) minutes of the annual members’ meeting are prepared; and
(b) those minutes include the answers to any questions asked at the meeting that a person is obliged to answer either at or after the meeting under sections 29PB, 29PC, 29PD or 29PE; and
(c) those minutes are made available to all members on the registrable superannuation entity’s website.
Subsection (1) does not apply in relation to certain entities
(7) Subsection (1) does not apply in relation to a registrable superannuation entity that is:
(d) an eligible rollover fund.
29PA Obligation to attend an annual members’ meeting
(b) any of the following persons is given notice of an annual members’ meeting for the entity in accordance with subsections 29P(2) and (3):
(2) A member of a group of individual trustees that is an RSE licensee of a registrable superannuation entity must attend an annual members’ meeting for the entity.
(3) A person who has been an auditor of a registrable superannuation entity for a year of income of the entity, must attend an annual members’ meeting for the entity relating to that year if the person is given notice of the meeting in accordance with subsections 29P(2) and (3).
(4) A person who has been an actuary of a registrable superannuation entity during a year of income of the entity must attend an annual members’ meeting for the entity relating to that year if the person is given notice of the meeting in accordance with subsections 29P(2) and (3).
(5) Subsections (1), (2), (3) and (4) do not apply to a person if the person has a reasonable excuse for not attending.
(6) Subsection (1) does not apply to a director of an RSE licensee of a registrable superannuation entity, if:
29PB Obligation on responsible officers of RSE licensees to answer questions
(1) This section applies if a member of a registrable superannuation entity asks a responsible officer of the RSE licensee for the entity a question at the meeting.
(2) The responsible officer of the RSE licensee must answer the question at the meeting or, if it is not reasonably practicable to do so, within 1 month after the meeting.
29PC Obligation on individual trustees to answer questions
(1) This section applies if a member of a registrable superannuation entity asks an individual trustee for the entity a question at an annual members’ meeting for the entity.
(2) The individual trustee must answer the question at the meeting or, if it is not reasonably practicable to do so, within 1 month after the meeting.
29PD Obligation on auditor to answer questions
(1) This section applies if a member of a registrable superannuation entity asks a person who has been an auditor of the registrable superannuation entity for a year of income of the entity a question at an annual members’ meeting for the entity for the year.
(2) The auditor must answer the question at the meeting or, if it is not reasonably practicable to do so, within 1 month after the meeting.
29PE Obligation on actuary to answer questions
(1) This section applies if a member of a registrable superannuation entity asks a person who has been an actuary of the registrable superannuation entity during a year of income of the entity a question at an annual members’ meeting for the entity for the year.
(2) The actuary must answer the question at the meeting or, if it is not reasonably practicable to do so, within 1 month after the meeting.
(iii) an actuarial investigation of the registrable superannuation entity carried out by the actuary; or
(iv) any matter that might reasonably be expected to be apparent to the actuary of the entity in relation to the entity; or
Subdivision B—Other obligations in relation to information
The amendments made by this Schedule apply in relation to years of income of a registrable superannuation entity beginning on or after the commencement of the Schedule.
1 Subsection 56(1) (paragraph (ca) of the definition of protected document)
After “13(4A)”, insert “or (4D)”.
2 Subsection 56(1) (paragraph (ca) of the definition of protected information)
2A After paragraph 13(4A)(a)
(aa) the extent to which the profits of the investor is attributable to deductions made by the investor;
(ab) if the return on the investment made by the investor is passed on (in whole or in part) to members of a regulated superannuation entity of the RSE licensee—the effect of any deduction by the investor on the amount passed on to the members;
(ac) if the investor is a person connected with the RSE licensee—the relationship between the RSE licensee and the investor;
3 After subsection 13(4C)
(4D) A reporting standard may require an RSE licensee to provide information in relation to any money, consideration or other benefit given to an entity (the receiving entity) by the RSE licensee or a person connected with the RSE licensee (the paying entity) out of the assets, or assets derived from assets, of a registrable superannuation entity of the RSE licensee, including information about the following:
(a) details of the receiving entity;
(b) details of how the money, consideration or benefit is given to the receiving entity;
(c) if the receiving entity is not the RSE licensee—the relationship between the receiving entity and the paying entity;
(d) the purpose for which the money, consideration or other benefit is given;
(e) the way in which the money, consideration or other benefit is used by the receiving entity, and any entity with which that entity deals, including the extent to which the receiving entity’s profit is attributable to that money, consideration or other benefit.
(4E) If:
(a) a reporting standard requires an RSE licensee to provide information (the required information) in relation to any money, consideration or other benefit given to a receiving entity by a paying entity out of the assets, or assets derived from assets, of a registrable superannuation entity of the RSE licensee; and
(b) the money, consideration or other benefit is given under a contract or other arrangement between the paying entity and the receiving entity;
(c) a term requiring the paying entity, at the time the money, consideration or benefit is given or as soon as reasonably practicable after that time, to notify the receiving entity that the money, consideration or benefit is given out of assets, or assets derived from, a registrable superannuation entity; and
(d) a term requiring the receiving entity, if notified by the paying entity in accordance with paragraph (c), to, as soon as reasonably practicable after being notified, provide the paying entity with the required information of which the receiving party is aware.
(4F) A person is connected with an RSE licensee for the purposes of subsection (4D) if the person is:
(c) a person who, under a contract or other arrangement with the RSE licensee or a person mentioned in paragraphs (a) or (b):
(i) invests assets, or assets derived from assets, of the RSE licensee’s registrable superannuation entities; or
(ii) provides a financial service (within the meaning of section 766A of the Corporations Act 2001) in relation to assets, or assets derived from assets, of the RSE licensee’s registrable superannuation entities.
(4G) Subsections (4D) and (4E) do not apply in relation to any money, consideration or other benefit given to another entity by the RSE licensee if it is an investment of assets, or assets derived from assets, of the RSE licensee’s registrable superannuation entities by the RSE licensee.
4 Application—reporting standards
(1) Subsection 13(4E) of the Financial Sector (Collection of Data) Act 2001, as inserted by this Schedule, applies in relation to a contract or arrangement whether entered into before, on or after this item commences.
(3) If, because of subitem (2), an RSE licensee is unable to obtain particular information that a reporting standard (within the meaning of the Financial Sector (Collection of Data) Act 2001) requires an RSE licensee to provide in relation to any money, consideration or other benefit given to an entity by the RSE licensee, or a person connected with the RSE licensee, out of the assets, or assets derived from assets, of a registrable superannuation entity of the RSE licensee, then the RSE licensee is not required to comply with the reporting standard to the extent that it requires the RSE licensee to provide that particular information.
1 Subparagraph 6(1)(a)(ix)
2 After subparagraph 6(1)(c)(iii)
(e) influence the person to encourage one or more of the person’s employees to remain, or apply or agree to be, a member of the fund.
(e) the person has not encouraged one or more of the person’s employees to remain, or apply or agree to be, a member of the fund.