Document ID: chunk:federal_register_of_legislation:C2025C00134:section:52:p2
Version: federal_register_of_legislation:C2025C00134
Segment Type: section
Provision Reference: s 52 (pt 2/6)
Character Range: 363663–366523

prevent the trustee from, or hinder the trustee in, properly performing or exercising the trustee's functions and powers;
 (i) if there are any reserves of the entity—to formulate, review regularly and give effect to a strategy for their prudential management, consistent with the entity's investment strategies and its capacity to discharge its liabilities (whether actual or contingent) as and when they fall due;
 (j) to allow a beneficiary of the entity access to any prescribed information or any prescribed documents.

Superannuation trustee
 (3) In paragraph (2)(b), a superannuation trustee is a person whose profession, business or employment is or includes acting as a trustee of a superannuation entity and investing money on behalf of beneficiaries of the superannuation entity.

Payments to third parties must be in best financial interests of beneficiaries
 (3A) To avoid doubt, the obligations of the trustee under paragraph (2)(c) apply in respect of payments to a third party by, or on behalf of, the entity.

Obligations to beneficiaries override obligations under certain other Acts
 (4) The obligations of the trustee under paragraph (2)(d) override any conflicting obligations an executive officer or employee of the trustee has under:
 (a) Part 2D.1 of the Corporations Act 2001; or
 (b) Subdivision A of Division 3 of Part 2‑2 of the Public Governance, Performance and Accountability Act 2013 (which deals with general duties of officials) or any rules made for the purposes of that Subdivision.

Trustee not prevented from engaging or authorising persons to act on trustee's behalf
 (5) A covenant referred to in paragraph (2)(h) does not prevent the trustee from engaging or authorising persons to do acts or things on behalf of the trustee.

Investment covenants
 (6) The covenants referred to in subsection (1) include the following covenants by each trustee of the entity:
 (a) to formulate, review regularly and give effect to an investment strategy for the whole of the entity, and for each investment option offered by the trustee in the entity, having regard to:
 (i) the risk involved in making, holding and realising, and the likely return from, the investments covered by the strategy, having regard to the trustee's objectives in relation to the strategy and to the expected cash flow requirements in relation to the entity; and
 (ii) the composition of the investments covered by the strategy, including the extent to which the investments are diverse or involve the entity in being exposed to risks from inadequate diversification; and
 (iii) the liquidity of the investments covered by the strategy, having regard to the expected cash flow requirements in relation to the entity; and
 (iv) whether reliable valuation information is available in relation to the investments covered by the strategy; and
 (v) the ability of