Superannuation Industry (Supervision) Act 1993

This section applies to a standard employer‑sponsored fund with more than 6, but fewer than 50, members.

This section applies on and after 1 July 1995.

If the fund is a public offer superannuation fund:

either:

the trustee of the fund must be an independent trustee; or

the fund must comply with the basic equal representation rules; and

if the regulations provide that the fund is subject to rules about the existence, number and functions of policy committees (prescribed policy committees)—the fund must comply with those rules; and

each prescribed policy committee must consist of equal numbers of employer representatives and member representatives.

If the fund is not a public offer superannuation fund, the fund must comply with:

the basic equal representation rules; or

the alternative agreed representation rule set out in subsection (5); or

an arrangement in relation to the management and control of the fund that:

has been agreed to between a majority of the members of the fund and the employer, or employers, of those members; and

is approved by APRA in writing.

When deciding whether or not to approve an arrangement under subparagraph (4)(c)(ii), APRA must have regard to any written guidelines determined by APRA under this subsection.

The approval of the arrangement given under subparagraph (4)(c)(ii) (the arrangement approval):

is subject to the conditions set out in the approval (if any); and

may be revoked by APRA by written notice given to a trustee of the fund.

Without limiting paragraph (4B)(b), APRA may revoke an arrangement approval if:

APRA is satisfied that there has been a contravention of a condition to which the approval is subject; or

a trustee of the fund applies in writing for its revocation.

APRA may vary or revoke the conditions of the arrangement approval by written notice given to a trustee of the fund.

For the purposes of this section, a fund complies with the alternative agreed representation rule if:

there is a single trustee of the fund who is a constitutional corporation; and

the trustee is appointed following nomination by agreement between:

a majority of the members of the fund; and

the employer or employers of those members; and

the trustee is an RSE licensee; and

a condition imposed under section 29EA on the RSE licensee’s RSE licence requires the RSE licensee to ensure that the fund, or a class of funds to which the fund belongs, complies with the alternative agreed representation rule whenever this section applies to the fund; and

the trustee is not an associate of a standard employer‑sponsor of the fund.

If, at a particular time, the number of members of a fund increases from a number less than 7 to 7 or more, but less than 50:

the trustee of the fund must make such arrangements (if any) as are necessary to enable the fund to comply with this section; and

the fund does not have to comply with this section during the period beginning at that time and ending:

at the time at which such arrangements are made; or

90 days after that time;