115Trustee of superannuation entity may maintain reserves

115 Trustee of superannuation entity may maintain reserves

(1) The trustee of a superannuation entity may maintain a reserve of the entity for a particular purpose, unless the governing rules of the entity prohibit the maintenance of a reserve for that purpose. Governing rules of an RSE must not prohibit reserves to cover operational risk (2) The governing rules of a registrable superannuation entity must not prohibit the maintenance of a reserve to cover the operational risk relating to the entity. (3) If the governing rules of a registrable superannuation entity are inconsistent with subsection (2): (a) subsection (2) prevails; and (b) the governing rules are invalid, to the extent of the inconsistency.