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Financial Sector Legislation Amendment (Simplifying Regulation and Review) Bill 2007

Schedule 2 Financial assistance

   

Financial Institutions Supervisory Levies Collection Act 1998

1  Section 16 (definition of Account )

Repeal the definition.

2  Section 24

Repeal the section, substitute:

24   Application of levy, late payment penalty and repayments of financial assistance

                   If levy is imposed as a result of a determination by the Minister to make a grant of financial assistance, the following amounts must be paid to the Commonwealth:

                     (a)  amounts of the levy, and late payment penalty in respect of the levy, received by the Minister;

                     (b)  repayments of the financial assistance.

Superannuation Industry (Supervision) Act 1993

3  Section 228 (definition of defined benefit fund )

Repeal the definition.

4  Section 228 (definition of defined benefit member )

Repeal the definition.

5  Section 228 (definition of defined benefit pension )

Repeal the definition.

6  Section 228 (definition of eligible loss )

Repeal the definition, substitute:

eligible loss means a loss suffered by a fund as a result of fraudulent conduct, or theft, but does not include an amount that the fund did not receive because of the failure of a person to pay contributions to the fund.

7  Section 228 (definition of fund )

Repeal the definition.

8  After paragraph 229(1)(a)

Insert:

                    (aa)  at the time it suffers the loss, the fund is:

                              (i)  a regulated superannuation fund (other than a self-managed superannuation fund); or

                             (ii)  an approved deposit fund; and

9  At the end of section 229

Add:

             (3)  To avoid doubt, an application may be made under this section by a trustee of a self-managed superannuation fund as long as the fund met the requirements in subsection (1) at the time the fund suffered the loss to which the application relates.

10  Section 230

Before “The”, insert “(1)”.

11  At the end of section 230

Add:

             (2)  The Minister may, by signed instrument, delegate the Minister’s power under subsection (1) to an SES employee, or acting SES employee, in the Department.

             (3)  In exercising a power delegated under subsection (2), a delegate must comply with any directions of the Minister.

12  At the end of section 230A

Add:

             (4)  The Minister may, by signed instrument, delegate the Minister’s function under subsection (1) to an SES employee, or acting SES employee, in the Department.

             (5)  In exercising a function delegated under subsection (4), a delegate must comply with any directions of the Minister.

13  Paragraph 231(1)(a)

Omit “for the purposes of the fund”, substitute “for the purposes of restoring the loss”.

14  At the end of section 231

Add:

             (3)  To avoid doubt, the Minister may grant financial assistance to a self-managed superannuation fund under this section as long as the fund met the requirements in subsection 229(1) at the time the fund suffered the loss to which the assistance relates.

             (4)  The Consolidated Revenue Fund is appropriated for the purposes of making payments of financial assistance granted under this section.

             (5)  Amounts appropriated under this section are not to be credited to the Australian Prudential Regulation Authority Special Account.

15  Section 233

Before “The”, insert “(1)”.

16  Subparagraph 233(b)(i)

Omit “beneficiaries in the fund”, substitute “persons who were beneficiaries in the fund at the time the fund suffered the eligible loss”.

17  Subparagraph 233(b)(ii)

Omit “the beneficiaries”, substitute “those persons”.

18  At the end of section 233

Add:

             (2)  Despite any law of the Commonwealth, a State or a Territory, whether written or unwritten, or any provision of a trust deed or other rules according to which a fund is administered:

                     (a)  a trustee of a fund must comply with a condition mentioned in paragraph (1)(b); and

                     (b)  the trustee does not contravene the law, trust deed or rules by complying with such a condition.

19  Division 3 of Part 23 (heading)

Repeal the heading, substitute:

Division 3 Repayment of financial assistance

20  Sections 234, 235, 236 and 237

Repeal the sections.

21  Application of amendments made by this Schedule

(1)       The amendments made by this Schedule apply in relation to applications for financial assistance made on or after the commencement of this Schedule (whether or not the eligible loss to which the application relates is suffered before or after the commencement of this Schedule).

(2)       However, if an application for financial assistance in relation to an eligible loss was made before the commencement of this Schedule, the amendments made by this Schedule do not apply in relation to any further application in respect of that loss.