Inserts for
Superannuation Legislation Amendment (Stronger Super and Other Measures) Bill (No. 2) 2012: Intra‑fund consolidation of superannuation interests

EXPOSURE DRAFT

Commencement information	
Column 1	Column 2	Column 3	
Provision(s)	Commencement	Date/Details	
1.  Schedule #	1 January 2013		

			

Schedule #—Merging multiple interests in a superannuation entity
  
Superannuation Industry (Supervision) Act 1993
1  Before subsection 29E(7)
Insert:
Complying with rules relating to merging multiple interests in a superannuation entity
	(6B)	The following additional condition is imposed on each RSE licence that relates to a superannuation entity for which the RSE licensee has obligations under section 108A. The condition is that the RSE licensee must ensure that the rules that that section requires in relation to the superannuation entity are complied with.
2  After section 108
Insert:
108A  Trustee’s duty to identify multiple interests of members in a superannuation entity
	(1)	Each trustee of a superannuation entity (other than the trustee of a pooled superannuation trust or a self managed superannuation fund) must ensure that rules are established (whether by inclusion in the governing rules or otherwise), which:
	(a)	set out a procedure for identifying when a member of the superannuation entity has more than one superannuation interest in the superannuation entity; and
	(b)	require the trustee to carry out the procedure to identify such members at least once each financial year; and
	(c)	if the member has two or more superannuation interests (other than defined benefit interests) in the superannuation entity—require the trustee to merge the interests if it is in the best interests of the member to do so; and
	(d)	provide that fees are not payable for any merger of superannuation interests that occurs as a result of the rules in paragraphs (a) to (c).
	(1A)	The requirement in paragraph (1)(c) does not apply to the extent that it is not practicable in the circumstances to merge the member’s interests.
	(2)	In determining, for the purpose of paragraph (1)(c), whether it is in the best interests of a member to merge their interests, the trustee must consider the total amount of fees and charges payable by the member in respect of their interests in the superannuation entity (including any fees and charges payable by the member for insurance provided in respect of the superannuation interest).
	(3)	A trustee commits an offence if the trustee contravenes subsection (1). This is an offence of strict liability.
Penalty:	50 penalty units.
Note 1:	Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.
Note 2:	For strict liability, see section 6.1 of the Criminal Code.
3  Application
The amendments made by this Schedule apply from 1 January 2013.