Superannuation Industry (Supervision) Act 1993

This section applies if the Regulator reasonably believes that a person who is:

a trustee of a self managed superannuation fund; or

a director of a body corporate that is a trustee of a self managed superannuation fund;

The Regulator may give the person a written direction (a rectification direction) requiring the person:

to take specified action to rectify the contravention; and

to provide the Regulator with evidence of the person’s compliance with the direction.

In deciding whether to give a person a rectification direction, the Regulator is to have regard to:

any financial detriment that might reasonably be expected to be suffered by the fund as a result of the person’s compliance with the direction; and

the nature and seriousness of the person’s contravention; and

any other relevant circumstances.

A rectification direction must specify the period within which the person must comply with the direction (which must be a period that is reasonable in the circumstances).

The period may be affected by the operation of subsection 164(7).

The Regulator must not give a rectification direction in relation to a contravention if:

the Regulator has, under section 262A, accepted an undertaking given by a person; and

the contravention is covered by the undertaking; and

the undertaking has neither been withdrawn nor varied in a way that means the contravention is no longer covered by it.

A person to whom a rectification direction is given must comply with the direction before the end of the period specified in the direction for the purposes of subsection (4).

A person commits an offence of strict liability if the person contravenes subsection (6).