Commonwealth Consolidated Acts

SUPERANNUATION INDUSTRY (SUPERVISION) ACT 1993 - SECT 29E

Conditions imposed on all RSE licences

             (1)  The following conditions are imposed on all RSE licences:

                     (a)  the RSE licensee and, if the RSE licensee is a group of individual trustees, each of the members of the group, must comply with the RSE licensee law;

                     (b)  the duties of a trustee in respect of each registrable superannuation entity of which it is an RSE licensee must be properly performed by:

                              (i)  if the RSE licensee is a body corporate--the body corporate; or

                             (ii)  if the RSE licensee is a group of individual trustees--each of the members of the group;

                    (ba)  the RSE licensee must:

                              (i)  have an ABN; or

                             (ii)  have made an application for an ABN that has not been refused under the A New Tax System (Australian Business Number) Act 1999 ;

                     (c)  the RSE licensee must have a risk management strategy that complies with Division 8, and must comply with that strategy;

                     (d)  the RSE licensee must ensure that each registrable superannuation entity of which it is the RSE licensee is:

                              (i)  registered under Part 2B; or

                             (ii)  the subject of an application for registration under Part 2B that has not been finally determined or otherwise disposed of;

                     (e)  the RSE licensee must comply with each measure and procedure set out in the risk management plan for each registrable superannuation entity of which it is the RSE licensee;

                    (ea)  the RSE licensee must ensure that each registrable superannuation entity of which it is an RSE licensee has an ABN;

                      (f)  the RSE licensee must notify APRA of any change in the composition of the RSE licensee (see subsection (2)) within 14 days after the change takes place;

                     (g)  the RSE licensee must comply with any other conditions prescribed by regulations made for the purposes of this paragraph.

Note 1:       Breach of a licence condition may lead to consequences such as a direction from APRA to comply with the condition (see section 29EB) or cancellation of the licence (see section 29G).

Note 2:       An RSE licensee must notify APRA if the RSE licensee breaches a licence condition: see section 29JA.

Note 3:       Additional conditions may be imposed on various types of RSE licences (see subsections (3) to (7)) or a particular RSE licence (see section 29EA).

Change in the composition of the RSE licensee

             (2)  For the purposes of paragraph (1)(f), a change in the composition of the RSE licensee is:

                     (a)  if the RSE licensee is a body corporate--a person becoming, or ceasing to be, a director of the body corporate; or

                     (b)  if the RSE licensee is a group of individual trustees--an individual becoming, or ceasing to be, a member of the group.

Classes enabling RSE licensees to be trustees of public offer entities

             (3)  The following additional conditions are imposed on each RSE licence that enables a trustee that holds a licence of that class to be a trustee of a public offer entity:

                     (a)  the RSE licensee that holds the licence must continue to be a constitutional corporation that meets the capital requirements under section 29DA; and

                     (b)  if the RSE licensee that holds the licence met the capital requirements by satisfying subsection 29DA(5) (and not subsection 29DA(2), (3) or (4)) when APRA granted the licence--the RSE licensee must continue to comply with the written requirements mentioned in that subsection.

Licences held by RSE licensees that are not constitutional corporations

             (4)  The following additional condition is imposed on each RSE licence that is not held by a constitutional corporation:

                     (a)  if the RSE licensee that holds the licence is a body corporate--that the body; or

                     (b)  if the RSE licensee is a group of individual trustees--that the members of the group;

only act as a trustee of superannuation funds that have governing rules providing that the sole or primary purpose of the fund is the provision of old‑age pensions.

Licences held by groups of individual trustees

             (5)  The following additional conditions are imposed on each RSE licence held by a group of individual trustees:

                     (a)  the members of the group must make all reasonable efforts to ensure that the group always has at least 2 members;

                     (b)  any continuous period for which the group has less than 2 members must be 90 days or less.

Note:          Paragraph 29E(1)(f) requires APRA to be notified of any change in the composition of the RSE licensee.

Licences held by RSE licensees of transferee funds

             (6)  An additional condition is imposed on each RSE licence held by an RSE licensee of a fund that has had benefits of members and beneficiaries transferred to it from a transferor fund under Part 18 (whether while the RSE licensee was the RSE licensee of the fund or earlier). The condition is that, while the RSE licensee is the RSE licensee of the fund, the RSE licensee assumes the obligation to pay benefits to those who were members or beneficiaries of the transferor fund immediately before the transfer.

Prescribed conditions imposed on classes of licences

             (7)  An additional condition prescribed by a regulation made for the purposes of this subsection as a condition applying to all RSE licences of a specified class is imposed on each RSE licence of that class.

             (8)  A specified class mentioned in subsection (7) may be a class other than a class provided for under subsection 29B(2) or (3) or under regulations made for the purposes of subsection 29B(4).