Superannuation Industry (Supervision) Act 1993

In force

Administered by

Department of the Treasury

Superseded version

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C2025C00287 (C5B)

19 July 1996 - 24 November 1996

Table of contents

Part 1—Preliminary
- Division 1—Preliminary
- 1 Short title
- 2 Commencement
- 3 Object of Act
- 4 Summary of provisions
- 5 Outline of key concepts
- 6 General administration of Act
- 7 Application of Act not to be excluded or modified
- 8 Act extends to external Territories
- 9 Crown to be bound
- Division 2—Interpretation
- 10 Definitions
- 11 Approvals, determinations etc. by Commissioner
- 12 Associates
- 13 Single trustees and groups of trustees
- 14 Indefinitely continuing fund—application of rules against perpetuities
- 15 Approved deposit funds—payments by trustees
- 15A Definitions of employee and employer
- 16 Definitions associated with employer sponsorship
- 17 Persons involved in contravention
- 18 Public offer superannuation fund
- 18A An excluded superannuation fund may not be a public offer superannuation fund
- 19 Regulated superannuation fund
- 20 Related bodies corporate
- 20A Resident approved deposit funds
Part 2—Approval of trustees
- 21 Object of Part
- 22 Interpretation
- 23 Application for approval
- 24 Further information may be requested
- 25 Period within which application for approval is to be decided
- 26 Deciding an application for approval
- 27 When an approval is in force
- 27A Application for variation of an approval
- 27B An application must be decided within a period of time
- 27C Commissioner may vary an approval on his or her own initiative
- 27D Notifying the trustee of the outcome of an application
- 27E When a variation of approval comes into force
- 28 Revocation of approval
- 29 Notification of change in circumstances or breach of conditions
Part 3—Operating standards for superannuation entities
- 30 Object of Part
- 31 Operating standards for regulated superannuation funds
- 32 Operating standards for approved deposit funds
- 33 Operating standards for pooled superannuation trusts
- 34 Prescribed operating standards must be complied with
Part 4—Trustee of superannuation entity to lodge annual returns with the Commissioner
- 35 Object of Part
- 36 Trustee to lodge annual returns
Part 5—Notices about complying fund status
- Division 1—Objects and interpretation
  - 37 Objects of Part
  - 38 Meaning of entity
- Division 2—Commissioner may give notices about complying fund status
- Division 3—Complying fund status for tax purposes
Part 6—Provisions relating to governing rules of superannuation entities
- 51 Object of Part
- 52 Covenants to be included in governing rules
- 53 Covenants to repay amounts to beneficiaries in approved deposit funds
- 54 Prerequisites to variation of repayment period
- 55 Consequences of contravention of covenant
- 56 Indemnification of trustee from assets of entity
- 57 Indemnification of directors of trustee from assets of entity
- 58 Trustee not to be subject to direction
- 59 Exercise of discretion by person other than trustee
- 60 Amendment of governing rules
- 60A Dismissal of trustee of public offer entity
Part 7—Provisions applying only to regulated superannuation funds
- 61 Object of Part
- 62 Sole purpose test
- 63 Commissioner may direct trustees of certain regulated superannuation funds not to accept employer contributions
- 64 Superannuation contributions—deductions from salary or wages to be remitted promptly
- 64A Compliance with determinations of the Superannuation Complaints Tribunal
- 65 Lending to members of regulated superannuation fund prohibited
- 66 Acquisitions of certain assets from members of regulated superannuation funds prohibited
- 67 Borrowing
- 68 Victimisation of trustees etc.
Part 8—In house asset rules applying to regulated superannuation funds
- Division 1—Object and interpretation
- Division 2—Historical cost ratio of fund’s in house assets
- Division 3—Market value ratio of fund’s in house assets
- Division 4—Enforcement
  - 84 In house asset rules must be complied with
- Division 5—Anti avoidance
  - 85 Prohibition of avoidance schemes
Part 9—Equal representation of employers and members—employer sponsored funds
- 86 Object of Part
- 87 Consequences of non compliance with this Part
- 88 This Part does not apply if acting trustee appointed under Part 17
- 89 Basic equal representation rules
- 90 Pre 1 July 1995 rules—funds with fewer than 200 members
- 91 Pre 1 July 1995 rules—funds with 200 or more members
- 92 Post 30 June 1995 rules—funds with more than 4, but fewer than 50, members
- 93 Post 30 June 1995 rules—funds with more than 49 members
- 93A A trustee who is an employer sponsor of a fund may still be an independent trustee
Part 10—Provisions applying only to approved deposit funds
- 94 Object of Part
- 95 Borrowing
Part 11—Provisions applying only to pooled superannuation trusts
- 96 Object of Part
- 97 Borrowing
- 98 Lending to unit holders prohibited
- 99 Civil penalty provisions
Part 12—Duties of trustees and investment managers of superannuation entities
- 100 Object of Part
- 101 Duty to establish arrangements for dealing with inquiries or complaints
- 102 Duty to seek information from investment manager
- 103 Duty to keep minutes and records
- 104 Duty to keep records of changes of trustees
- 105 Duty to keep reports
- 106 Duty to notify Commissioner of significant adverse events
- 107 Duty of trustee of employer sponsored fund to establish procedure for appointing member representatives
- 108 Duty of trustee of employer sponsored fund to establish procedure for appointing independent trustee or independent member of board of directors of corporate trustee
- 109 Investments of superannuation entity to be made and maintained on arm’s length basis
Part 13—Accounts, statements and audits of superannuation entities
- 110 Object of Part
- 111 Accounting records
- 112 Accounts and statements
- 113 Audit of accounts and statements
Part 14—Other provisions applying to superannuation entities
- 114 Object of Part
- 115 Trustee of superannuation entity may maintain reserves
- 116 Agreement between trustee and investment manager
- 117 Circumstances in which amounts may be paid out of an employer sponsored fund to an employer sponsor
- 118 Consents to appointments
Part 15—Standards for trustees, custodians and investment managers of superannuation entities
- 119 Object of Part
- 120 Disqualified persons
- 121 Disqualified persons not to be trustees of superannuation entities
- 122 Investment manager must not appoint or engage custodian without the trustee’s consent
- 123 Persons who may be appointed to be custodians of superannuation entities
- 124 Investment managers must be appointed in writing
- 125 Individuals not to be investment managers of superannuation entities
- 126 Disqualified persons not to be investment managers of superannuation entities
- 126A Disqualified persons not to be custodians of superannuation entities
- 126B Application for waiver of disqualified status
- 126C Application must be decided within a period of time
- 126D Notifying of the outcome of an application
- 126E The effect of seeking a waiver of disqualified person status
- 126F Commissioner’s powers to seek further material
- 127 Non compliance not to invalidate appointment or transaction
Part 16—Actuaries and auditors of superannuation entities
- 128 Object of Part
- 129 Obligations of actuaries and auditors—compliance
- 130 Obligations of actuaries and auditors—solvency
- 131 Auditors—disqualification orders
- 131A Commissioner may refer matters to a professional association
Part 17—Suspension or removal of trustee of superannuation entity
- 132 Object of Part
- 133 Suspension or removal of trustee of superannuation entity
- 134 Commissioner to appoint acting trustee in cases of suspension or removal
- 135 Terms and conditions of appointment of acting trustee
- 136 Termination of appointment of acting trustee
- 137 Resignation of acting trustee
- 138 Property vesting orders
- 139 Powers of acting trustee
- 140 Acting trustee to notify appointment to beneficiaries
- 141 Commissioner may give directions to acting trustee
- 142 Commissioner may formulate a scheme for the winding up or dissolution, or both, of a superannuation entity
Part 18—Prohibited conduct in relation to superannuation interests
- 143 Object of Part
- 144 Regulated acts
- 145 Fraudulently inducing a person to engage in a regulated act—criminal liability
- 146 Misleading conduct in connection with a regulated act—civil liability
- 147 Misleading conduct by trustees of entities—civil liability
- 148 Civil liability where section 146 or 147 contravened
- 149 Contravention of Part does not affect validity of issue of superannuation interest etc.
Part 19—Public offer entities—provisions relating to superannuation
- Division 1—Preliminary
  - 150 Object of Part
  - 151 Contravention of Part does not affect validity of issue of superannuation interest etc.
- Division 2—Issuing, offering etc. superannuation interests in public offer entities
- Division 3—Provisions relating to information given to prospective beneficiaries etc. of public offer entities
- Division 4—Stop orders
- 164 Order to stop contracts etc. for issue of superannuation interests in public offer entities
- 165 When a stop order is in force
- 166 Revocation of stop order
- 167 Effect of stop order
- Division 5—Application money to be held on trust
- 168 Situation to which Division applies—application money received but superannuation interest not issued immediately
- 169 Trustee to comply with requirements of the regulations in relation to the money
- Division 6—Cooling off—redemption of interests
- 170 Situation to which Division applies—superannuation interest issued in certain circumstances
- 171 Governing rules taken to confer right to have interest redeemed
- 172 Consequences of contravening provisions taken to be included in governing rules
Part 20—Public offer entities—insider trading
- Division 1—Preliminary
  - 173 Object of Part
  - 174 Superannuation interest means interest in public offer entity
- Division 2—Interpretation
- Division 3—Insider trading rules
- Division 4—Offence of contravening the insider trading rules
  - 184 Offence of contravening the insider trading rules
- Division 5—Civil liability for contravention of the insider trading rules—recovery of loss or damage
  - 185 Civil liability where plaintiff suffers loss or damage because of a contravention of the insider trading rules
- Division 6—Civil liability for contravention of the insider trading rules—recovery of price differential
- Division 7—Special powers of Court to make orders in cases of contravention of the insider trading rules
  - 191 Special powers of Court
Part 21—Civil and criminal consequences of contravening civil penalty provisions
- Division 1—Preliminary
- Division 2—Civil penalty orders
- Division 3—Criminal proceedings
  - 202 When contravention of civil penalty provisions is an offence
  - 203 Application for civil penalty order precludes later criminal proceedings
- Division 4—Effect of criminal proceedings on application for civil penalty order
- Division 5—Compensation for loss suffered by superannuation entity
- Division 6—Miscellaneous
  - 221 Relief from liability for contravention of civil penalty provision
  - 222 Part does not limit power to award punitive damages
Part 22—Payment of unclaimed superannuation money to the Commissioner
- 223 Object of Part
- 224 Definition of fund
- 225 Trustee to pay unclaimed money to the Commissioner
- 226 Register of unclaimed money
Part 23—Financial assistance to certain funds
- Division 1—Preliminary
- Division 2—Determination of applications for financial assistance
- Division 3—How financial assistance is to be paid
Part 24—Facility to pay benefits to eligible rollover funds
- 241 Object of Part
- 242 Interpretation
- 243 Payment of benefits to eligible rollover fund
- 244 Operating standards for transferor funds—information and records
- 245 Tax file number information
- 246 Deemed quotation of tax file numbers to eligible rollover funds
- 247 Recording etc. of tax tile numbers
- 248 Claims for benefits
Part 24A—Transitional provisions relating to pre 1 July 1995 automatic rollovers of benefits between funds
- 249 Object of Part
- 250 Definitions
- 251 Rights of beneficiary to rolled over benefits
- 252 Claims to rolled over benefits
Part 25—Monitoring and investigating superannuation entities
- Division 1—Objects of Part
  - 253 Objects of Part
- Division 2—Monitoring superannuation entities
- Division 3—Commissioner may require trustee of superannuation entity to appoint an individual, or a committee, to investigate the financial position of the entity
- Division 4—Investigations by Commissioner
- Division 5—Examinations
- Division 6—Reports
  - 284 Report of inspector
- Division 7—Offences
- Division 8—Evidentiary use of certain material
- Division 9—Miscellaneous
  - 298 Commissioner may cause civil proceeding to be begun
  - 299 Person complying with requirement not to incur liability to another person
Part 26—Offences relating to statements, records etc.
- 300 Object of Part
- 301 Interpretation
- 302 False or misleading statements
- 303 Incorrectly keeping records etc.
- 304 Recklessly making false or misleading statements
- 305 Intentionally making false or misleading statements
- 306 Intentionally or recklessly incorrectly keeping records etc.
- 307 Incorrectly keeping records with intention of deceiving or misleading etc.
- 308 Falsifying or concealing identity with intention of deceiving or misleading etc.
Part 27—Powers of Court
- 309 Object of Part
- 310 Power to grant relief
- 311 Power of Court to give directions with respect to meetings ordered by the Court
- 312 Irregularities
- 313 Power of Court to prohibit payment or transfer of money or property
- 314 Court may order the disclosure of information or the publication of advertisements—contravention of provisions relating to issue of superannuation interests etc.
- 315 Injunctions
- 316 Effect of sections 313, 314 and 315
- 317 Power of Court to punish for contempt of court
- 318 Court may resolve transitional difficulties
Part 28—Proceedings
- 319 Object of Part
- 320 Power of Commissioner to intervene in proceedings
- 321 Civil proceedings not to be stayed
- 322 Standard of proof
- 323 Relief from civil liability for contravention of certain provisions
- 324 Evidence of contravention
- 325 Vesting of property
Part 29—Exemptions and modifications
- 326 Object of Part
- 327 Interpretation
- 328 Commissioner’s powers of exemption—modifiable provisions
- 329 Commissioner’s powers of exemption—temporarily modifiable provisions
- 330 Commissioner’s powers of exemption—general issues
- 331 Enforcement of conditions to which exemption is subject
- 332 Commissioner’s powers of modification—modifiable provisions
- 333 Commissioner’s powers of modification—temporarily modifiable provisions
- 334 Commissioner’s powers of modification—general issues
- 335 Revocation of exemptions and modifications
- 336 Publication of exemptions and modifications etc.
Part 30—Miscellaneous
- 337 Object of Part
- 338 Conduct by directors, servants and agents
- 339 Conviction does not relieve defendant from civil liability
- 340 Liability for damages
- 341 Civil immunity where defendant was complying with this Act
- 342 Pre 1 July 88 funding credits and debits
- 343 Rules against perpetuities not to apply to superannuation entity
- 344 Review of certain decisions
- 345 Statements to accompany notification of decisions
- 346 Secrecy
- 347 How information may be given to the Commissioner of Taxation
- 347A Commissioner may collect statistical information
- 348 Commissioner may publish statistical information
- 349 This Act and the regulations have effect subject to the Crimes (Superannuation Benefits) Act 1989
- 349A Payment out of a fund in accordance with the Bankruptcy Act 1966
- 350 Concurrent operation of State/Territory laws
- 351 Delegation
- 352 Annual reports
- 353 Regulations
Part 31—Transition to scheme provided for in this Act
- Division 1—Object of Part
  - 354 Object of Part
- Division 2—Entities that have a management company and a trustee
- Division 3—Regulations may make other transitional provisions
  - 380 Regulations may make other transitional provisions
Part 32—Additional transitional provisions—tax file numbers
- 381 Object of Part
- 382 Quotation of tax file number
- 383 Pre 1 July 1994 quotation of tax file number to be treated as if made under provisions commencing on 1 July 1994
- 384 Pre 1 July 1994 quotation of tax file number—request for quotation, or recording, of number not prohibited by the Taxation Administration Act 1953
- 385 Pre 1 July 1994 quotation of tax file number—objects of tax file number system
Endnotes
- Endnote 1—About the endnotes
- Endnote 2—Abbreviation key
- Endnote 3—Legislation history
- Endnote 4—Amendment history

Superannuation Industry (Supervision) Act 1993

Legislation text