The Fund Registration Failure

Responding to public concerns about the safety of their superannuation, the Parliament of Australia enacted the Superannuation Safety Amendment Act 2004 that empowered APRA to licence the trustees of large superannuation funds and to register the funds themselves.

In order to have their fund registered, trustees had to lodge a copy of the Trust Deed that established the fund and copies of the set of documents that constitute the “governing rules” of the fund pursuant to Section 29L of the Superannuation Industry (Supervision) Act 1993 which had been amended by the Superannuation Safety Amendment Act 2004

Butterworths Australian Legal Dictionary defines “governing rules” as follows:

“In relation to superannuation fund, approved deposit fund or a unit trust, any trust instrument, other document or legislation, or combination of these, governing the establishment and operation of the fund or unit trust”.

Only a limited number of documents were provided to APRA and some of the purported Deeds had not been duty stamped pursuant the Stamp Duties Act 1923 (SA) and one purported Deed provided to APRA had not been executed.

Fund Registration

A number of purported “Resolutions” bearing the signature of Geoffrey Cohen were not lodged with APRA. APRA had banned Cohen only months before for his conduct in the collapse of HIH Insurance Ltd.

Even though copies of the correct documents had not been provided to APRA, APRA still registered this fund in contravention of Section 29M of the Superannuation Industry (Supervision) Act 1993

More details can be found here:

Fund Registration Failure

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This tab updated on 16 December 2015