3.2 The present division

All trustees of APRA-regulated funds must be RSE licensees under the SIS Act.[1] Most RSE licensees hold an Australian Financial Services Licence (AFSL) under Part 7.6 of the Corporations Act.[2]

The SIS Act establishes the general framework for the regulation of superannuation funds. Regulations made under the SIS Act provide elaborate operating standards for trustees.[3] The Corporations Act deals with provision of financial services by and to superannuation trustees, mandatory disclosure requirements and dispute resolution arrangements. The ASIC Act sets out the consumer protection laws for the financial services sector.

Section 6 of the SIS Act identifies which agencies administer the provisions of the Act. Some functions are given to ASIC and some to the ATO but, subject to those more particular exceptions, section 6 gives APRA the general administration of the central provisions of the SIS Act including the provisions about licensing of RSEs, trustees’ and directors’ covenants and the sole purpose test.

ASIC has the general administration of the Corporations Act,[4] and the licensing and other functions given to it by Chapter 7 of that Act.

[1] Background Paper No 25, 25.

[2] Background Paper No 25, 29.

[3] Superannuation Industry (Supervision) Regulations 1993 (Cth); Background Paper No 25, 8.

[4] Corporations Act s 5B.