What it does
The Superannuation Industry (Supervision) Regulations 1994 (SIS Regulations) constitute the principal subordinate legislation made under the Superannuation Industry (Supervision) Act 1993 (SIS Act). Their core function is to prescribe detailed operating standards, information requirements, and prudential rules that give practical effect to the SIS Act's overarching purpose of protecting the integrity of the superannuation system (see SIS Act s 3).
The Regulations are structured in 14 Parts. Part 1 contains preliminary definitions (reg 1.03) that are used throughout, including "preserved benefits", "restricted non-preserved benefits", "growth phase", and "permanent incapacity". Part 1A sets standards for annuities and pensions (regs 1.05–1.08), distinguishing account-based, market-linked, and innovative income streams. Part 2 mandates information disclosure to members, including at annual meetings (regs 2.08–2.11) and on request (regs 2.30–2.33). Part 3 addresses public offer entities, policy committees, and licensing classes (regs 3.01–3A.06). Part 3B introduces superannuation data and payment standards (regs 3B.01–3B.03), requiring unique identifiers and electronic processing.
Part 4 imposes management and trusteeship standards, including covenants (reg 4.01), investment strategies (reg 4.09), and member representation (regs 4.08–4.08A). Part 5 contains benefit protection rules, defining minimum benefits (regs 5.04–5.07) and requiring fair allocation of costs and returns (regs 5.01A–5.03). Part 6 is the longest and most litigated: it classifies benefits as preserved, restricted non-preserved, or unrestricted non-preserved (regs 6.02–6.15A), imposes cashing restrictions (regs 6.17–6.27A), and sets compulsory rollover/transfer timeframes (regs 6.33–6.38). Division 6.7 governs spouse contributions-splitting (regs 6.40–6.46), while Part 6A provides portability forms.