Commonwealth Numbered Acts

SUPERANNUATION INDUSTRY (SUPERVISION) ACT 1993 No. 78, 1993 - SECT 123

123.(1) A person must not intentionally be the custodian of a superannuation
entity (other than an excluded fund) unless:

   (a)  the person is a body corporate; and

   (b)  either of the following subparagraphs applies:

        (i)    the value of the net tangible assets of the body corporate is
               not less than the amount prescribed by the regulations;

        (ii)   the trustee of the entity is entitled to the benefit, in
               respect of the due performance of the body corporate's duties
               as custodian of the entity, of an approved guarantee of an
               amount that is not less than the amount prescribed by the
               regulations. Penalty: 600 penalty units.

(2) Subsection (1) does not prohibit a person from being a custodian of a
superannuation entity if:

   (a)  the person immediately tells the trustee of the entity and the
        Commissioner in writing that paragraph (1)(b) does not, or has ceased
        to, apply; and

   (b)  the person is the custodian of the entity during:

        (i)    the 28-day period beginning at whichever is the later of the
               following times:

                (A)  the time when paragraph (1)(b) ceased to apply to the
                     custodian;

                (B)  the beginning of the entity's 1994-95 year of income; or

        (ii)   such longer period as the Commissioner allows; and

   (c)  the trustee of the entity has made, or proposes to make, arrangements
        for the orderly dismissal of the person as the custodian; and

   (d)  the person is taking, or is willing to take, all reasonable steps to
        assist the trustee in carrying out those arrangements.

(3) If paragraph (1)(b) does not, or ceases to, apply to the custodian of a
superannuation entity:

   (a)  the custodian must immediately tell the trustee of the entity and the
        Commissioner in writing; and

   (b)  the trustee must make arrangements for the orderly dismissal of the
        custodian; and

   (c)  the trustee must make those arrangements before the end of:

        (i)    the 28-day period beginning at whichever is the later of the
               following times:

                (A)  the time when paragraph (1)(b) ceased to apply to the
                     custodian;

                (B)  the beginning of the entity's 1994-95 year of income; or

        (ii)   such longer period as the Commissioner allows.

(4) A person who contravenes subsection (3) because of paragraph (a) of that
subsection is guilty of an offence punishable on conviction by a fine not
exceeding 50 penalty units.

(5) A person who contravenes subsection (3) because of paragraph (b) or (c) of
that subsection is guilty of an offence punishable on conviction by a fine not
exceeding 100 penalty units.