SUPERANNUATION INDUSTRY (SUPERVISION) ACT 1993 - SECT 131EB Direction to relinquish control

SUPERANNUATION INDUSTRY (SUPERVISION) ACT 1993 - SECT 131EB

  (1)   The Regulator may give a person a direction to relinquish control of an RSE licensee if:

  (a)   the Regulator has reason to believe that:

  (i)   the person has a controlling stake in the RSE licensee; or

  (ii)   the person has practical control of the RSE licensee; and

  (b)   the Regulator has reason to believe that because of:

  (i)   the person's controlling stake, or practical control, of the RSE licensee; or

  (ii)   the way in which control has been, is or is likely to be exercised;

    the RSE licensee has been, is or is likely to be unable to satisfy one or more of the trustee's obligations contained in a covenant set out in sections   52 to 53, or prescribed under section   54A.

  (2)   The Regulator may give a person a direction to relinquish control of an RSE licensee if:

  (a)   the Regulator has reason to believe that the person has a controlling stake in the RSE licensee; and

  (b)   the person does not have approval under section   29HD to hold a controlling stake in the RSE licensee.

  (3)   The Regulator may give a person a direction to relinquish control of an RSE licensee if:

  (a)   the Regulator has reason to believe that that the person has a controlling stake in the RSE licensee; and

  (b)   the person has approval under section   29HD to hold a controlling stake in the RSE licensee; and

  (c)   information given to the Regulator in relation to the application for approval was false or misleading in a material particular.

  (4)   To avoid doubt, a direction under subsection   (1) or (3) to a person to relinquish a controlling stake in an RSE licensee may be given even if the person has approval to hold a controlling stake in the RSE licensee.

  (5)   The direction must be given in writing.

  (6)   The Regulator must give the person:

  (a)   a copy of the direction; and

  (b)   a statement of the Regulator's reasons for giving the direction.

  (7)   The Regulator may revoke a direction to relinquish control of an RSE licensee.

  (8)   The revocation must be in writing and a copy of the revocation must be given to the person.