Document ID: chunk:federal_register_of_legislation:C2012A00117:clause:1_52:p2
Version: federal_register_of_legislation:C2012A00117
Segment Type: clause
Provision Reference: sch 1 cl 52 (pt 2/3)
Character Range: 13689–16591

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.

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) Division 4 of Part 3 of the Commonwealth Authorities and Companies Act 1997.

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 the entity to discharge its existing and prospective liabilities; and
 (vi) the expected tax consequences for the entity in relation to the investments covered by the strategy; and
 (vii) the costs that might be incurred by the entity in relation to the investments covered by the strategy; and
 (viii) any other relevant matters;
 (b) to exercise due diligence in developing, offering and reviewing regularly each investment option;
 (c) to ensure the investment options offered to each beneficiary allow adequate diversification.

Insurance covenants
 (7) 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 insurance strategy for the benefit of beneficiaries of the entity that includes provisions addressing each of