(c) the payment is not prohibited by the entity’s trust deed; and
(d) where an interest is issued, the applicant for the issue of the interest has, before the issue occurred, been notified in writing of the amount or rate of the proposed payment of commission or brokerage.
(3) The trustee of a public offer entity must not make a payment of commission or brokerage to a person (the provider) for the provision of a financial service by the provider in respect of issuing an interest in the entity unless the provider is:
(a) a financial services licensee that is authorised to deal in superannuation products; or
(b) an authorised representative of a financial services licensee that is authorised to deal in superannuation products; or
(c) exempt from the requirement to hold an Australian financial services licence; or
(d) the provider of the financial service on behalf of another person who is exempt.
(4) A reference in subregulation (3) to a solicitor or accountant includes a reference to a firm of solicitors or accountants, or to a partner in such a firm, as the case requires.
(5) The trustee of an entity must keep an account of amounts of commission and brokerage paid by the entity.
3.11 Payment by trustee of a public offer entity of commission or brokerage
(1) This regulation applies in relation to a person who, immediately before this regulation commences, was entitled to a payment of commission or brokerage in the circumstances mentioned in paragraph 3.10(3)(a), (b), (d), (e) or (f) of the SIS Regulations.
(2) Regulation 3.10, as in force immediately before this regulation commences, continues to apply in relation to the person’s entitlement.
(3) Subregulation (2) ceases to apply in relation to the entitlement on the earlier of:
(a) the day on which the person becomes a financial services licensee in relation to the activity to which the payment relates; and
(b) the end of the transition period for the person mentioned in section 1438 of the Corporations Act 2001.
Part 3A—Matters prescribed or specified in relation to licensing of trustees and of groups of individual trustees
Division 3A.1—Classes of RSE licences
3A.01 Public offer entity licences
For paragraph 29B(2)(b) of the Act, the following classes of registrable superannuation entities are specified:
(a) superannuation entities that are superannuation funds with no more than 6 members (other than self managed superannuation funds);
(b) excluded approved deposit funds.
3A.02 Non‑public offer entity licences
(1) For subsection 29B(3) of the Act, all classes of registrable superannuation entities, other than the following classes, are specified:
(a) public offer entities;
(b) superannuation entities that are superannuation funds with no more than 6 members (other than self managed superannuation funds);
(c) excluded approved deposit funds.
(2) The class of RSE licences provided for under subsection 29B(3) of the Act is called the class of non‑public offer entity licences.
3A.03 Extended public offer entity licences
(1) For subsection 29B(4) of the Act, extended public offer entity licences are a class of RSE licences.
(2) Subject to any condition imposed on an extended public offer entity licence under subsection 29EA(3) of the Act, the licence enables a trustee that holds a licence of that class to be a trustee of any registrable superannuation entity.
3A.03A Acting trustee licences
(1) For subsection 29B(4) of the Act, acting trustee licences are a class of RSE licences.
(2) Subject to any condition imposed on an acting trustee licence under subsection 29EA(3) of the Act, the licence allows:
(a) a trustee that holds an acting trustee licence; or
(b) a trustee who is a member of a group of individual trustees that holds an acting trustee licence;
to be a trustee of a registrable superannuation entity or entities to which the trustee is appointed to act as trustee under section 134 of the Act by APRA.
(3) For subsection 29E(7) of the Act, for the period of the licence, a trustee must not, without APRA approval, carry on a business other than that of performing the functions and duties of a trustee of a registrable superannuation entity or entities to which the appointment relates (the trustee business).
(4) APRA may approve the trustee carrying on a business other than the trustee business if APRA is satisfied that the carrying on of the other business would not prejudice the proper and efficient performance of the trustee’s functions and duties.
Division 3A.3—Applying for RSE licences
3A.05 Definitions
In this Division:
extended public offer entity licence means an RSE licence of a class specified in regulation 3A.03.
non‑public offer entity licence means an RSE licence of a class provided for under subsection 29B(3) of the Act.
Note: The definition of public offer entity licence is contained in subsection 10(1) of the Act.
3A.06 Application fees
For paragraphs 29C(4)(c) and 29F(2)(c) of the Act, the following fees are prescribed:
Item Application Fees ($)
Non‑public offer entity licence Public offer entity licence Extended public offer entity licence
1 Application for RSE licence, other than an application mentioned in item 4, 6 or 7. 5 500 20 000 20 000
4 Application for non‑public offer entity licence if, in the 12 months before the application is made: 2 750 n/a n/a
(a) the applicant applied for a licence of that class, for a public offer entity licence, or for an extended public offer entity licence; and
(b) that application was refused or withdrawn.
6 Application for public offer entity licence if, in the 12 months before the application is made: n/a 10 000 n/a
(a) the applicant applied for a licence of that class, or for an extended public offer entity licence; and
(b) that application was refused or withdrawn.
7 Application for extended public offer entity licence if, in the 12 months before the application is made: n/a n/a 10 000
(a) the applicant applied for a licence of that class, or for a public offer entity licence; and
(b) that application was refused or withdrawn.
8 Application for variation under paragraph 29F(1)(a):
(a) if the applicant already holds a non‑public offer entity licence; or n/a 14 500 14 500
(b) if the applicant already holds a public offer entity licence; or 500 n/a 500
(c) if the applicant already holds an extended public offer entity licence. 500 500 n/a
Part 3B—Superannuation data and payment matters
3B.01 Definitions
In this Part:
prescribed eligible superannuation entity means an entity prescribed for the purposes of regulation 3B.02.
unique superannuation identifier, for an eligible superannuation entity, means either:
(a) the entity’s ABN followed by 3 numerals; or
(b) another kind of unique identifier approved in writing by the Commissioner of Taxation.
3B.02 Prescribed eligible superannuation entity for register
For the purposes of paragraph 34Z(1)(a) of the Act, all eligible superannuation entities are prescribed.
3B.03 Information to be given for register
(1) For subsection 34Z(1) of the Act, the trustee of a prescribed eligible superannuation entity must give to the Commissioner of Taxation (the Commissioner):
(a) at least one unique superannuation identifier for the entity; and
(b) for each unique superannuation identifier:
(i) one set of bank details that is sufficient to enable an electronic payment to be made; and
(ii) either:
(A) one internet protocol address; or
(B) one other kind of digital address approved by the Commissioner for the receipt of electronic communications.
(2) The trustee may give:
(a) the same bank details for more than one unique superannuation identifier; and
(b) the same internet protocol address, or other approved digital address, for more than one unique superannuation identifier.
(3) The trustee must tell the Commissioner the date on which the information is to be operative for the entity.
(4) However, the information must be operative for the entity on or before the date on which the entity first receives a contribution (other than a contribution received from an employer that is not covered by regulation 7.07E or a contribution received from a member), or a rollover or transfer of a member’s withdrawal benefit.
(5) The trustee must give the information mentioned in subregulation (1) to the Commissioner on or before 10 business days before the day on which the entity first receives a contribution, or a rollover or a transfer of a member’s withdrawal benefit.
(8) If the trustee of an entity proposes to change any information given for the entity under this regulation, the trustee must give the changed information to the Commissioner no later than 10 business days before the new information is to be operative for the entity.
Part 4—Management and trusteeship of superannuation entities
Division 4.1—Prescribed matters
4.01A Covenants in governing rules of superannuation entity—trustee’s determination and benchmarks
MySuper products
(1) For the purposes of subparagraph 52(9)(a)(i) of the Act, subregulation (2) specifies a benchmark in relation to a MySuper product.
(2) The benchmark is the requirement in subsection 60D(1) of the Act having been met for the product in relation to the most recently ended financial year.
Choice products
(3) For the purposes of subparagraph 52(9)(a)(ii) of the Act, subregulation (4) specifies a benchmark in relation to a choice product that is a Part 6A product.
(4) The benchmark is the requirement in subsection 60D(1) of the Act having been met for the product in relation to the most recently ended financial year.
4.01 Covenants in governing rules of superannuation entity—prescribed information and documents
For paragraphs 52(2)(j) and 52B(2)(h) of the Act, the information and documents that are available to a concerned person under section 1017C of the Corporations Act 2001 are prescribed.
4.02 Covenants in governing rules of self managed superannuation fund—beneficiary investment choice
(1) This regulation is made for paragraph 52B(4)(b) of the Act.
(2) The circumstances in which a direction, other than a subsequent direction, may be made by a specified beneficiary or class of beneficiaries are the following:
(a) the trustee:
(i) gives the beneficiary or class a choice of 2 or more strategies for investing the interest of the beneficiary or class in the fund; and
(ii) informs the beneficiary or class that the beneficiary or class may choose a strategy or combination of strategies;
(b) the beneficiary or class is fully informed of:
(i) the investment objectives of each strategy; and
(ii) anything else the trustee reasonably believes a person would need to know to understand the effect of, and any risk involved in, each strategy;
(c) the direction specifies:
(i) which strategy or combination of strategies the beneficiary or class has chosen; and
(ii) where applicable, matters related to the choice mentioned in subparagraph (i);
Example: The chosen strategy could be one that allows the beneficiary a choice in exposure to certain classes of asset. The beneficiary may choose 60% in fixed interest loans and 40% in shares. The choice of the level of exposure to the class of assets would be information for subparagraph (ii).
(d) the beneficiary or class is fully informed of the range of directions that can be given and the circumstances in which they can be changed.
(3) A subsequent direction may be given in the following circumstances:
(a) the beneficiary or class is given all the information the trustee believes a person would need to understand the effect of, and any risk involved in, giving the subsequent direction;
(b) the subsequent direction relates to the strategy for investing the beneficiary or class’s interest in the fund.
4.02A Trustee subject to direction—registrable superannuation entity other than regulated superannuation fund with no more than 6 members
(1) This regulation is made for subparagraph 58(2)(d)(ii) of the Act.
(2) If a beneficiary is a standard employer‑sponsored member, the circumstances in which a direction other than a subsequent direction may be given by the beneficiary to take up, dispose of or alter the amount invested in an investment option are:
(a) the trustee:
(i) gives the beneficiary a choice of 2 or more strategies for investing the interest of the beneficiary in the fund; and
(ii) informs the beneficiary that the beneficiary may choose a strategy or combination of strategies;
(b) the beneficiary is fully informed of:
(i) the investment objectives of each strategy; and
(ii) anything else the trustee reasonably believes a person would need to know to understand the effect of, and any risk involved in, each strategy;
(c) the direction specifies:
(i) which strategy or combination of strategies the beneficiary has chosen; and
(ii) where applicable, matters related to the choice mentioned in subparagraph (i).
Example: The chosen strategy could be one that allows the beneficiary a choice in exposure to certain classes of asset. The beneficiary may choose 60% in fixed interest loans and 40% in shares. The choice of the level of exposure to the class of assets would be information for subparagraph (ii).
Note: Information regarding investment strategies is generally set out in a Product Disclosure Statement. However, a shorter Product Disclosure Statement may, in accordance with the modifications of the Corporations Act 2001 set out in Part 5B of Schedule 10A to the Corporations Regulations 2001 provide some of the information by applying, adopting or incorporating a matter in writing; or refer to information that is set out in another document.
(d) the beneficiary is fully informed of the range of directions that can be given and the circumstances in which they can be changed;
(e) the trustee, when presenting a choice of 2 or more investment strategies to the beneficiary, informs the beneficiary which strategy the trustee will adopt if no direction is given.
(3) Disregard the circumstance in paragraph (2)(e) if it is a condition of membership that the beneficiary chooses a strategy or combination of strategies.
(4) If a beneficiary is not a standard employer‑sponsored member, the circumstances in which a direction other than a subsequent direction may be given by the beneficiary to take up, dispose of or alter the amount invested in an investment option are the circumstances in paragraphs (2)(a) to (d).
(5) A subsequent direction may be given in the following circumstances:
(a) the beneficiary is given all the information the trustee believes a person would need to understand the effect of, and any risk involved in, giving the subsequent direction;
(b) the subsequent direction relates to the strategy for investing the beneficiary’s interest in the fund.
4.02AA Operating standard—direction on investment option to trustee of regulated superannuation fund with no more than 6 members
(1) This standard:
(a) is made for subsection 31(1) of the Act; and
(b) applies to a regulated superannuation fund (other than a self managed superannuation fund) with no more than 6 members.
(2) A beneficiary of the fund who is a standard employer‑sponsored member may give a direction other than a subsequent direction to take up, dispose of or alter the amount invested in an investment option only if the circumstances in subregulation (3) apply.
(3) For subregulation (2), the circumstances are the following:
(a) the trustee:
(i) gives the beneficiary a choice of 2 or more strategies for investing the interest of the beneficiary in the fund; and
(ii) informs the beneficiary that the beneficiary may choose a strategy or combination of strategies;
(b) the beneficiary is fully informed of:
(i) the investment objectives of each strategy; and
(ii) anything else the trustee reasonably believes a person would need to know to understand the effect of, and any risk involved in, each strategy;
(c) the direction specifies:
(i) which strategy or combination of strategies the beneficiary has chosen; and
(ii) where applicable, matters related to the choice mentioned in subparagraph (i);
Example: The chosen strategy could be one that allows the beneficiary a choice in exposure to certain classes of asset. The beneficiary may choose 60% in fixed interest loans and 40% in shares. The choice of the level of exposure to the class of assets would be information for subparagraph (ii).
Note: Information regarding investment strategies is generally set out in a Product Disclosure Statement. However, a shorter Product Disclosure Statement may, in accordance with the modifications of the Corporations Act 2001 set out in Part 5B of Schedule 10A to the Corporations Regulations 2001 provide some of the information by applying, adopting or incorporating a matter in writing; or refer to information that is set out in another document.
(d) the beneficiary is fully informed of the range of directions that can be given and the circumstances in which they can be changed;
(e) the trustee, when presenting a choice of 2 or more investment strategies to the beneficiary, informs the beneficiary which strategy the trustee will adopt if no direction is given.
(4) Disregard the circumstance in paragraph (2)(e) if it is a condition of membership that the beneficiary chooses a strategy or combination of strategies.
(5) If a beneficiary is not a standard employer‑sponsored member, the circumstances in which a direction other than a subsequent direction may be given by the beneficiary to take up, dispose of or alter the amount invested in an investment option are the circumstances in paragraphs (3)(a) to (d).
(6) A subsequent direction may be given in the following circumstances: