Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Superannuation Legislation Amendment (Trustee Governance) Bill 2015

Bill home page  


Download WordDownload Word


Download PDFDownload PDF

7834

2013-2014-2015

 

The Parliament of the

Commonwealth of Australia

 

THE SENATE

 

 

 

 

 

Superannuation Legislation Amendment (Trustee Governance) Bill 2015

 

 

 

(1)     Schedule 1, item 1, page 3 (before line 10), before section 86, insert:

Division 1 Independent directors etc. or trustees

[equal representation]

(2)     Schedule 1, item 1, page 8 (after line 26), after section 91, insert:

Division 2 Representation of employers and members

91A   Non-public offer entities must have equal representation of employers and members

             (1)  This section applies to a registrable superannuation entity that is not a public offer entity.

             (2)  If the RSE licensee of the registrable superannuation entity is a body corporate:

                     (a)  one third of the RSE licensee’s directors must be member representatives; and

                     (b)  one third of the RSE licensee’s directors must be employer representatives.

91B   Alternative arrangements for non-public offer entities

             (1)  Section 91A does not apply in relation to an RSE licensee if the RSE licensee complies with an arrangement in relation to the management and control of the registrable superannuation entity that is approved by APRA in writi ng.

             (2)  However, section 91A applies in relation to an RSE licensee that was complying with an arrangement approved under subsection (1) if the RSE licensee notifies APRA in writing that it has ceased to comply with the arrangement.

             (3)  In deciding whether or not to approve an arrangement under subsection (1), APRA must have regard to any guidelines made under subsection (4).

             (4)  APRA may, by legislative instrument, make guidelines relating to approval of arrangements under subsection (1).

91C   Public offer funds may have equal representation of employers and members

             (1)  A registrable superannuation entity that is a public offer superannuation fund may comply with section 91A as if it were not a public offer superannuation fund.

             (2)  The RSE licensee of the registrable superannuation entity must inform APRA if it complies, or ceases to comply, with section 91A.

91D   Effect of vacancies

                   For the purposes of the application of section 91A to an RSE licensee, if:

                     (a)  a vacancy occurs in the membership the board of the RSE licensee; and

                     (b)  immediately before the vacancy occurred, the RSE licensee complied with that section; and

                     (c)  the vacancy is filled within 90 days after it occurred; and

                     (d)  immediately after the vacancy is filled, the RSE licensee complies with that section;

the RSE licensee is taken to have complied with that section at all times during the period of the vacancy.

[equal representation]

(3)     Schedule 1, item 1, page 8 (before line 27), before section 92, insert:

Division 3 Matters relating to compliance

[equal representation]

(4)     Schedule 1, item 3, page 11 (lines 5 and 6), omit the item, substitute:

3  Subsection 10(1) (definition of employer representative )

Repeal the definition, substitute:

employer representative , in relation to the board of directors of the RSE licensee of a registrable superannuation entity means a member of the board nominated by:

                     (a)  the employer or employers of the members of the fund; or

                     (b)  an organisation representing the interests of that employer or those employers.

[equal representation]

(5)     Schedule 1, item 5, page 11 (lines 11 to 16), omit the item, substitute:

5  Subsection 10(1) (definitions of independent director and independent trustee )

Repeal the definitions.

5A  Subsection 10(1) (definition of member representative )

Repeal the definition, substitute:

member representative , in relation to the board of directors of the RSE licensee of a registrable superannuation entity means a member of the board nominated by:

                     (a)  the members of the fund; or

                     (b)  a trade union, or other organisation, representing the interests of those members.

5B  Subsection 10(1) (definition of policy committee )

Repeal the definition.

[equal representation]

( 6 )     Schedule  2 , item 3, page 16 (after line 28) , after subsection  12 (7), insert:

             (8)  To avoid doubt, this section is not affected by Division 2 of Part 9 of the Superannuation Industry (Supervision) Act 1993 .

[equal representation]