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 $1.65M; 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
Related obligations
- CWLTHPay superannuation on every payday (Payday Super)From 1 July 2026, super must reach the employee's fund within 7 business days of each payday.
- CWLTHLodge an annual SMSF audit before lodging the SMSF Annual ReturnSelf-managed super funds must be audited by an ASIC-registered auditor each year.
- CWLTHMaintain SMSF compliance with the sole purpose test (s 62)SMSFs must be maintained for the sole purpose of providing retirement benefits.
- CWLTHAnnual YFYS performance test (MySuper + Choice)APRA annual performance test for MySuper products + (from 2024) Trustee Directed Products.
- CWLTHStronger Member Outcomes — APRA SPS 515RSE licensees must annually assess member-outcomes performance + take action.
- CWLTHMySuper authorisation for default super productsDefault super contributions can only flow to APRA-authorised MySuper products.
Frequently asked questions
- Who must comply with SIS Act trustee covenants?
- Trustees of regulated superannuation funds (APRA-regulated RSE licensees and SMSF trustees).
- What triggers SIS Act trustee covenants?
- Holding office as a super fund trustee.
- When is SIS Act trustee covenants due?
- Continuous.
- What is the maximum penalty for SIS Act trustee covenants?
- Civil penalties up to $1.65M; loss of RSE licence; member compensation orders
- What evidence is required for SIS Act trustee covenants?
- Investment governance framework, conflicts register, trustee minutes, BFID decision documentation.
Source: https://apra.gov.au/super-prudential-framework. Rules Mate is not a law firm. Always verify against the live regulator source before acting.