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Superannuation Legislation Amendment (Service Providers and Other Governance Measures) Bill 2013

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2010-2011-2012-2013

 

The Parliament of the

Commonwealth of Austr alia

 

HOUSE OF REPRESENTATIVES

 

 

 

Superannuation Legislation Amendment (Service Providers and Other Governance Measures) Bill 2012

 

 

( 1 )     Clause  2 , page 5 (cell at table item  33 , column 1), omit the cell, substitute:

33.  Schedule 1, items 129 and 130

 

 

[service provider and investment obligations]

(2)     Schedule  1 , item  44 , page 15 (line 33) , omit “ in writing ”.

[contributions into MySuper products]

(3)     Schedule  1 , item  44 , page 16 (line 4) , omit “ in writing ”.

[contributions into MySuper products]

(4)     Schedule  1 , item  46 , page 16 (lines 13 to 17) , omit subsection  29WA(4) , substitute:

Directions

             (4)  For the purposes of this section, a direction that it is alleged was given to the trustee, or the trustees, of the fund after 31 March 2013 is taken not to have been given if:

                     (a)  the direction was not given in writing; or

                     (b)  a copy of the direction is not held by or on behalf of the trustee, or the trustees, of the fund.

             (5)  The regulations may prescribe circumstances in which a direction given to the trustee, or the trustees, of one regulated superannuation fund is to be taken to be a direction given to the trustee, or the trustees, of another regulated superannuation fund for the purposes of this section.

Exception—life policies, investment account contracts and cash investment options

             (6)  If an asset (or assets) attributed to the person mentioned in subsection (1) is invested in one or more of the following on 31 March 2013:

                     (a)  a life policy under which contributions and accumulated earnings may not be reduced by negative investment returns or any reduction in the value of assets in which the policy is invested;

                     (b)  a life policy under which the benefit to the person (or a relative or dependant of the person) is based only on the realisation of a risk, not the performance of an investment;

                     (c)  an investment account contract the only beneficiaries of which are the person, and relatives and dependants of the person;

                     (d)  an investment option under which the investment is held as cash;

subsection (2) does not apply to the extent that a contribution to the fund for the benefit of the person is invested in the life policy, under the investment account contract or in the cash investment option.

[contributions into MySuper products]

( 5 )     Schedule  1 , item  47 , page 16 (line 33) , omit “ in writing ”.

[contributions into large employer MySuper products]

( 6 )     Schedule  1 , item  47 , page 17 (line 4) , omit “ in writing ”.

[contributions into large employer MySuper products]

( 7 )     Schedule  1 , item  47 , page 17 (after line 17) , at the end of section  29WB , add:

Directions

             (4)  For the purposes of this section, a direction that it is alleged was given to the trustee, or the trustees, of the fund after 31 March 2013 is taken not to have been given if:

                     (a)  the direction was not given in writing; or

                     (b)  a copy of the direction is not held by or on behalf of the trustee, or the trustees, of the fund.

             (5)  The regulations may prescribe circumstances in which a direction given to the trustee, or the trustees, of one regulated superannuation fund is to be taken to be a direction given to the trustee, or the trustees, of another regulated superannuation fund for the purposes of this section.

Exception—life policies, investment account contracts and cash investment options

             (6)  If an asset (or assets) attributed to the member mentioned in subsection (1) is invested in one or more of the following on 31 March 2013:

                     (a)  a life policy under which contributions and accumulated earnings may not be reduced by negative investment returns or any reduction in the value of assets in which the policy is invested;

                     (b)  a life policy under which the benefit to the member (or a relative or dependant of the member) is based only on the realisation of a risk, not the performance of an investment;

                     (c)  an investment account contract the only beneficiaries of which are the member, and relatives and dependants of the member;

                     (d)  an investment option under which the investment is held as cash;

subsection (2) does not apply to the extent that a contribution to the fund for the benefit of the member is invested in the life policy, under the investment account contract or in the cash investment option.

[contributions into large employer MySuper products]

( 8 )     Schedule  1 , item  72 , page 27 (after line 21) , after section  58A , insert:

58B   Service providers and investments

             (1)  This section applies if a trustee, or the trustees, of a regulated superannuation fund does one or more of the following:

                     (a)  acquires a service from an entity;

                     (b)  invests assets of the fund in or through an entity;

                     (c)  invests assets of the fund in or through a financial product;

                     (d)  purchases a financial product using assets of the fund;

                     (e)  uses assets of the fund to make payments in relation to a financial product.

             (2)  If the trustee, or the trustees, would not breach:

                     (a)  a provision of any of the following:

                              (i)  this or any other Act;

                             (ii)  a legislative instrument made under this or any other Act;

                            (iii)  the prudential standards;

                            (iv)  the operating standards;

                             (v)  the governing rules of the fund; or

                     (b)  any covenant referred to in this Part or prescribed under this Part;

in doing one or more of the things mentioned in subsection (1), the general law relating to conflict of interest does not apply to the extent that it would prohibit the trustee, or the trustees, from doing the thing.

[service provider and investment obligations]

( 9 )     Schedule  1 , Part  2 , page 49 (after line 6) , at the end of the Part, add:

130  Application of amendment inserting section 58B

The amendment made by item 72 of this Schedule, to the extent that it relates to proposed section 58B, applies in relation to things done on or after 1 July 2013.

[service provider and investment obligations]