SUPERANNUATION INDUSTRY (SUPERVISION) ACT 1993 - SECT 59 Exercise of discretion by person other than trustee

SUPERANNUATION INDUSTRY (SUPERVISION) ACT 1993 - SECT 59

  (1)   Subject to subsection   (1A), the governing rules of a superannuation entity other than a self managed superannuation fund must not permit a discretion under those rules that is exercisable by a person other than a trustee of the entity to be exercised unless:

  (a)   those rules require the consent of the trustee, or the trustees, of the entity to the exercise of that discretion; or

  (b)   if the entity is an employer - sponsored fund:

  (i)   the exercise of the discretion relates to the contributions that an employer - sponsor will, after the discretion is exercised, be required or permitted to pay to the fund; or

  (ii)   the exercise of the discretion relates solely to a decision to terminate the fund; or

  (iii)   the circumstances in which the discretion was exercised are covered by regulations made for the purposes of this subparagraph.

  (1A)   Despite subsection   (1), the governing rules of a superannuation entity may, subject to a trustee of the entity complying with any conditions contained in the regulations, permit a member of the entity, by notice given to a trustee of the entity in accordance with the regulations, to require a trustee of the entity to provide any benefits in respect of the member on or after the member's death to a person or persons mentioned in the notice, being the legal personal representative or a dependant or dependants of the member.

  (2)   If the governing rules of a superannuation entity are inconsistent with subsection   (1), that subsection prevails, and the governing rules are, to the extent of the inconsistency, invalid.