Commonwealth Numbered Regulations - Explanatory Statements

[Index] [Search] [Download] [Related Items] [Help]

SUPERANNUATION INDUSTRY (SUPERVISION) AMENDMENT REGULATIONS 2000 (NO. 3) 2000 NO. 185

Statutory Rules 2000 No. 185

Issued by the Authority of the Minister for Financial Services and Regulation

Superannuation Industry (Supervision) Act 1993

Superannuation Industry (Supervision) Amendment Regulations 2000 (No. 3)

Section 353 of the Superannuation Industry (Supervision) Act 1993 (the Act) provides that the GovernorGeneral may make regulations for the purposes of the Act.

The Act and the Superannuation Industry (Supervision) Regulations 1994 (the Principal Regulations) provide for the regulation of certain superannuation funds, approved deposit funds and pooled superannuation trusts by the Australian Prudential Regulation Authority (APRA), the Australian Securities and Investments Commission, and the Australian Taxation Office.

The purpose of the Regulations is to make amendments to the definition of "pooled superannuation trust" (PST) in the Principal Regulations. In particular, the amendments will add to the existing definition of PST by requiring the trustee of a unit trust that wishes to be a PST to give to APRA a confirmation of intention to be a PST.

This will assist APRA in monitoring unit trusts that are PSTs, and avoid the current situation in which some unit trusts technically meet the criteria of the definition of a PST, but the trustees are unaware of this and do not intend the unit trusts to be PSTs.

Unit trusts that meet the definition of PST immediately before the amendments take effect will continue to be PSTs up until the time for lodgement of the trusts' first annual return after the amendments take effect. After this time, those unit trusts in respect of which a confirmation of intention has not been given to APRA will no longer meet the definition of PST.

Details of the Regulations are set out in the Attachment.

The Regulations commence on gazettal.

ATTACHMENT

Amendments to the Superannuation Industry (Supervision) Regulations 1994

Regulation 1 - Name of Regulations

Regulation 1 provides that these Regulations are the Superannuation Industry (Supervision) Amendment Regulations 2000 (No. 3).

Regulation 2 - Commencement

Regulation 2 provides that the Regulations commence on gazettal.

Regulation 3 - Amendment

Regulation 3 provides that Schedule 1 amends the Superannuation Industry (Supervision) Regulations 1994 (the Principal Regulations).

Regulation 4 - Transitional

Regulation 4 sets out transitional arrangements which apply to unit trusts that meet the definition of "pooled superannuation trust" (PST) in the Principal Regulations immediately before the commencement of these amendments.

Such unit trusts will continue to be PSTs up until the time for lodgement of the trust's first return under subsection 36(1) of the Act after these amendments commence.

After this time, unit trusts in respect of which a confirmation of intention to be a PST has not been given to APRA (see item 2 of Schedule 1) will no longer meet the definition of PST. Those unit trusts in respect of which a confirmation of intention to be a PST has been given to APRA will continue to be PSTs under the definition as amended by these Regulations (provided they also continue to meet the criteria in paragraphs 1.04(5)(a) and (b)).

Schedule 1

Items [1] and [2] - New paragraph 1.04(5)(c)

Items 1 and 2 amend existing subregulation 1.04(5) to insert a new paragraph (c). The new paragraph adds to the definition of PST by requiring that, in order for a unit trust to come within the definition of a PST, each of the following circumstances must apply:

*       the trustee of the trust has confirmed in writing an intention to have the trust treated as a PST;

*       the confirmation was given to APRA in the approved form, and is signed and dated by the trustee;

*       the confirmation was given to APRA not later than the time of lodgement in accordance with subsection 36(1) of the Act, of the first return in relation to the trust after the commencement of paragraph 1.04(5)(c); and

*       the confirmation has not been withdrawn.

The trustee of a PST is also required to provide certain prescribed information under existing Regulation 11.06.

Item [3] - New subregulations 1.04(6), 1.04(7) and 1.04(8)

Item 3 inserts three new subregulations. New subregulation 1.04(6) provides that the trustee may confirm an intention under paragraph 1.04(5)(c) despite anything in the governing rules of the trust.

New subregulation 1.04(7) requires the trustee of a unit trust in respect of which a confirmation of intention has been given under paragraph 1.04(5)(c) to inform APRA in writing as soon as practicable after the unit trust ceases to be a PST because it no longer meets the criteria in paragraphs 1.04(5)(a) and (b).

New subregulation 1.04(8) allows the trustee to withdraw a confirmation of intention given under paragraph 1.04(5)(c) by giving APRA written notification signed and dated by the trustee.