A law proposed as part of 'Stronger Super' will change the core obligations, and standards expected, of trustees and their directors of a 'registrable superannuation entity'. However, although the new law rearranges some sections relating to SMSF trustees, it doesn't materially affect core obligations of SMSF trustees or their directors.
The Bill represents the second tranche of changes to implement the Government's Stronger Super reforms.Maddocks Superannuation Team
The draft Bill proposes:
You can read the draft Bill here on the Treasury Stronger Super Website.
The proposed new obligations will not apply to trustees of SMSFs. Rather, the existing covenants to be included in the governing rules of SMSFs will continue to apply. However, they will be moved to new sections 52B and 52C with some minor amendments — including an obligation on SMSF trustees to 'review regularly':
Trustees of RSEs need to beware that the draft Bill:
The draft Bill expands the application of the obligations under section 52 to also apply to directors of corporate trustees. Consequently, individuals who are directors of corporate trustees will need to ensure that they:
In addition to the above obligations which apply to RSEs generally, there are a number of new obligations which are specific to MySuper product providers.
These additional obligations include:
The draft Bill gives APRA the power to issue prudential standards for the superannuation industry, including to regulate RSE licensee conduct:
The additional duties for trustees and directors of corporate trustees of RSEs will apply from 1 July 2013. The provisions in the draft Bill giving APRA the power to make prudential standards will apply from the day after Royal Assent.
You can read earlier ClearLaw articles giving an overview of the Government's Stronger Super initiative and the first tranche of legislation introduced, see:
For questions or more information about the above article, please call Maddocks in Melbourne (03 9288 0555) and ask for a member of the Superannuation Team.
 The Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Bill 2012 (Bill).
 A 'superannuation trustee' is a person whose profession, business or employment is or includes acting as a trustee of a superannuation entity and investing money on behalf of beneficiaries of the superannuation entity.
 A 'superannuation entity director' is a person whose profession, business or employment is or includes acting as director of a corporate trustee of a superannuation entity and investing money on behalf of beneficiaries of the superannuation entity.
Andrew is a lawyer in the Maddocks Tax & Revenue team.
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His advice covers both direct and indirect tax considerations.
Prior to joining Maddocks, Andrew was a tax consultant at a Big 4 Chartered Accounting Firm.
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