New South Wales Consolidated Acts

PARLIAMENTARY CONTRIBUTORY SUPERANNUATION ACT 1971 - SECT 7

7 Financial accommodation and investment

(1) The trustees may, under and subject to the Public Authorities (Financial Arrangements) Act 1987 :

(a) obtain financial accommodation, and

(b) make financial arrangements, and

(c) make investments.

(2) The trustees must invest money standing to the credit of the Fund that is available for investment through an investment manager or managers who undertake to invest and manage that money on behalf of the trustees.

(3) The trustees may appoint one or more investment managers for the purposes of this section.

(4) The trustees must not, from the assets of the Fund or in obtaining financial accommodation:

(a) lend money to a contributor for, or to a person entitled to or receiving, a benefit under this Act, either by lending the money directly or by lending it under arrangements entered into in the exercise of a general power of investment of the assets of the Fund, or

(b) borrow money or maintain an existing borrowing of money, whether by way of a secured or unsecured loan, otherwise than to obtain temporary finance, or

(c) invest any of the assets of the Fund otherwise than on an arms-length basis, unless it is an investment in an in-house asset within the meaning of Part 8 of the Superannuation Industry (Supervision) Act 1993 of the Commonwealth.

(5) The trustees are taken to have complied with subsection (4) from 1 July 1990 to the commencement of that subsection.