Scott Ryan (President) Share this | Hansard source

Senators, I need leave to recommit the vote on the amendments on sheet GZ227 revised, circulated by the government, in two questions because of some confusion about which amendments had been withdrawn.

Leave granted.

The Senate will now consider the amendments on sheet GZ227 revised, circulated by the government. The first question is that the amendments to the amendments on sheet GZ227 revised circulated by the opposition on sheet 8638 revised be agreed to.

Opposition's circulated amendments—

(1) Amendment (2), before item 1, insert:

1A Subsection 10(1) (after the definition of authorised person)

Insert:

benchmark means a benchmark mentioned in, or specified in regulations made for the purposes of, subparagraphs 52(9) (a) (i) and (ii) and paragraph 52(9) (aa).

1AA Subsection 10(1) (after the definition of Commissioner)

Insert:

comparable choice products, in relation to a choice product, means a class of choice product specified in regulations made for the purposes of this definition that the choice product is to be compared with.

(2) Amendment (2), item 6, subparagraph 52(9) (a) (i), omit "set under the prudential standards", substitute "specified in regulations made for the purposes of this subparagraph".

(3) Amendment (2), item 6, subparagraph 52(9) (a) (ii), omit the subparagraph, substitute:

  (ii) if the product is a choice product—a comparison of the choice product with the comparable choice products in relation to the choice product, based on factors mentioned in subsection (10A), and a comparison of the choice product with any other benchmarks specified in regulations made for the purposes of this subparagraph; and

(4) Amendment (2), item 6, after paragraph 52(9) (a), insert:

(aa) to determine, in writing, on an annual basis, whether each trustee of the entity is promoting the financial interests of the beneficiaries of the fund, as assessed against benchmarks specified in regulations made for the purposes of this subparagraph;

(5) Amendment (2), item 6, after subsection 52(10), insert:

(10A) In comparing a choice product with the comparable choice products in relation to the choice product, the trustees must compare each of the following:

(a) the fees and costs that affect the return to the beneficiaries holding the choice products;

(b) the return for the choice products;

(c) the level of investment risk for the choice products;

(d) any other matter specified in the prudential standards.

(6) Amendment (3), after item 6, insert:

6A Subsection 196(3)

Omit "2,000", substitute "2,400".

(7) Amendment (12), omit the definition of investment option, substitute:

investment option, for a registrable superannuation entity, means:

(a) an investment pool maintained within the entity; or

(b) a financial product made availableto a member of the entity:

  (i) that is a managed investment scheme or other pooled investment; and

  (ii) in respect of which section 1012IA applies if there is, or will be, a regulated acquisition of the product (within the meaning of that section).

ADDITIONAL RELATED AMENDMENTS TO THE BILL

(8) Schedule 5, page 22 (after line 8), after item 2, insert:

2A Subsection 10(1) (definition of connected entity)

Repeal the definition, substitute:

connected entity, in relation to an RSE licensee of a registrable superannuation entity, means:

(a) an associated entity (within the meaning of the Corporations Act 2001) of the RSE licensee; and

(b) if the RSE licensee is a group of individual trustees—an entity that has the capacity to determine or influence decisions made by one or more members of the group in relation to the registrable superannuation entity; and

(c) any other entity of a kind prescribed by the regulations.

[connected entity]

(9) Schedule 5, item 11, page 23 (after line 24), after paragraph 131D(1) (c), insert:

(ca) the RSE licensee, or the registrable superannuation entity of the RSE licensee, has failed to meet a benchmark that relates to the licensee or entity; or