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Tuesday, 25 March 1997
Page: 2410

Senator ALLISON(6.20 p.m.) —by leave—I move:

(6)   Clause 50, page 35 (line 26), omit "The RSA provider", substitute "Subject to subsection (2A), the RSA provider".

(7)   Clause 50, page 35 (line 30), omit "12 months", substitute "28 days".

(8)   Clause 50, page 35 (after line 31), after subclause (2), insert:

(2A)   Where an RSA exceeds $10,000, the Commissioner may grant an extension of time to an RSA provider to transfer the amount of the RSA, provided that:

   (a)   the Commissioner is satisfied that the extension is necessary to transfer the funds; and

   (b)   the transfer is not a transfer requested by an RSA holder under sections 50A or 50B.

These amendments reduce the amount of time, from 12 months to 28 days, that an RSA provider has to respond to a request from the account holder to transfer funds to another fund. We think that—given that the RSAs are likely to be fairly small, and that would be less than $10,000—this 12-month period is simply excessive. We think it could be used to disadvantage account holders. Our amendment No. 8 does allow for an exception for larger amounts of money where an extension is genuinely needed—for instance, to access locked up funds. I suggest that this is a measure which would not make the RSAs unworkable. It would certainly give a high level of protection to RSA holders.