Commonwealth Consolidated Regulations

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CORPORATIONS REGULATIONS 2001 - REG 7.9.68

Modification of section 1019B of the Act: client includes standard employer-sponsor

             (1)  For paragraph 1020G(1)(c) of the Act, subsection 1019A(1) and paragraph 1019A(3)(a) of the Act are modified so that a reference in those provisions to a client includes a standard employer-sponsor in respect of the issue of a superannuation product to an employee of the standard employer-sponsor as a standard employer-sponsored member in accordance with subparagraph 1016A(2)(b)(iii) of the Act.

             (2)  For paragraph 1020G(1)(c) of the Act, subsection 1019B(1) of the Act is modified in its application to the issue of a superannuation product mentioned in subregulation (1) as if a reference in subsection 1019B(1) to money paid to acquire a financial product were a reference to all monies paid in relation to the superannuation product.

             (3)  For subsection 1019B(2) of the Act, it is a requirement of the exercise of the right to return a superannuation product mentioned in subregulation (1) that, if the monies to be repaid include employer contributions (whether or not they are mandated employer contributions), the standard employer-sponsor must nominate a superannuation fund, approved deposit fund or RSA into which the employer contributions are to be repaid.

             (4)  The right of return is taken to have been exercised only on receipt by the responsible person of the nomination.

             (5)  The standard employer-sponsor must make the nomination not later than 1 month after notifying the responsible person of the right to exercise the right of return.

             (6)  The standard employer-sponsor must notify the responsible person in writing or by electronic means .

             (7)  For subsection 1019B(7) of the Act, if the right of return is exercised by a standard employer-sponsor under this regulation, the responsible person must return the money as directed.

             (8)  For subsection 1019B(7) of the Act, if the right of return is exercised by a standard employer-sponsor under this regulation, and if the monies to be repaid include monies paid in relation to the superannuation product by the standard employer-sponsored member (including monies rolled over or transferred from another superannuation entity or RSA) (the relevant monies ) the relevant monies are to be paid by the responsible person:

                     (a)  in respect of benefits defined under the SIS Regulations as a restricted non-preserved benefits or preserved benefits ( restricted monies )--to a superannuation entity or RSA as directed by the standard employer-sponsored member; or

                     (b)  in respect of any other relevant monies paid by the standard employer-sponsored member--as directed by the standard employer-sponsored member.

             (9)  For subsection 1019B(7) of the Act, if:

                     (a)  a financial product mentioned in this regulation is subject to the nomination of a further superannuation entity or RSA; and

                     (b)  the application in relation to the issue of a financial product is not accepted by the nominated superannuation entity or RSA;

the responsible person may rollover or transfer the holder's benefits to an eligible rollover fund.



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