Comply with SIS Act trustee covenants
Super fund trustees owe statutory covenants of care, skill, diligence, best financial interests, and prudent investment.
Who must comply
Trustees of regulated superannuation funds (APRA-regulated RSE licensees and SMSF trustees).
What triggers it
Holding office as a super fund trustee.
When due
Continuous.
Evidence required
Investment governance framework, conflicts register, trustee minutes, BFID decision documentation.
Max penalty
Civil penalties up to $1.565M; loss of RSE licence; member compensation orders
Summary
Section 52 of the Superannuation Industry (Supervision) Act 1993 imposes covenants on trustees of regulated super funds: act with care, skill and diligence; act in the best financial interests of beneficiaries; avoid conflicts; observe prudent investment principles; and maintain adequate financial resources. APRA-regulated trustees additionally comply with SPS 510, SPS 530, SPS 220.
Enforced by
Source legislation
Industries
Topics
Source: https://apra.gov.au/super-prudential-framework. Rules Mate is not a law firm. Always verify against the live regulator source before acting.