Document ID: chunk:federal_register_of_legislation:C2025C00134:section:115
Version: federal_register_of_legislation:C2025C00134
Segment Type: section
Provision Reference: s 115
Character Range: 592551–593274

115  Trustee of superannuation entity may maintain reserves
 (1) The trustee of a superannuation entity may maintain a reserve of the entity for a particular purpose, unless the governing rules of the entity prohibit the maintenance of a reserve for that purpose.

Governing rules of an RSE must not prohibit reserves to cover operational risk
 (2) The governing rules of a registrable superannuation entity must not prohibit the maintenance of a reserve to cover the operational risk relating to the entity.
 (3) If the governing rules of a registrable superannuation entity are inconsistent with subsection (2):
 (a) subsection (2) prevails; and
 (b) the governing rules are invalid, to the extent of the inconsistency.