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7. Application Process

 
 
FAQ7.1: Part B.3 of the application refers to the provision of marked-up copies where the agreement deviates from the service provider's standard agreement - what does this mean?
This question only applies where the trustee has a "standard" service provider agreement. This question is designed to cater mainly for the applicants that are trustees for the smaller entities, where they are using a service provider for a particular business activity and the agreement is based on a standard agreement. APRA is seeking to facilitate the assessment process by asking trustees to direct us to any area where the agreement has been tailored for specific circumstances.

FAQ7.2: What information is APRA seeking on Form A4.2 of the licence application?
The purpose of Form A4.2 Other Business, on page 33 of the Licence application, is to capture information on those businesses undertaken by the trustee entity (other than acting as Trustee). For example, these businesses may include administration or funds management services. The form is not intended to relate to personal activities of individual trustee directors. Where APRA has given approval authorising non trustee-related business activities please attach a copy as per the Licence application requirements in Attachment A4 “Approval to conduct non-trustee business”. Where an entity undertakes no other business other than as trustee of its RSEs, then this form should be left blank.
 
FAQ7.3: Do public offer RSE licensees require an Australian financial services licence (AFSL)?
Yes, at a minimum, public offer RSE licensees need an authorisation to deal in a financial product by issuing, applying for, acquiring, varying or disposing of a financial product in superannuation issued by ASIC. The applicant must have lodged an application for an AFSL prior to applying for a public offer RSE licence. APRA can issue an RSE licence as long as an ‘offer’ has been made by ASIC. Evidence of the offer must be submitted to APRA as part of its application.
 
FAQ7.4: Do non public offer RSE licensees require an Australian financial services licence?
Regulation 7.6.01(1)(a) of the Corporations Regulations 2001, allows superannuation trustees other than public offer entities to deal in financial products in their capacity as a superannuation trustee without an AFSL (unless the trustee is advising).
 
FAQ7.5: What does APRA expect in the written explanation (Statement of Compliance) to be received as an attachment to Part B of the licence application form?
The purpose of the explanation is to firstly assist the trustee in ensuring that all requirements prescribed by the legislation and the Guidance Note have been addressed and secondly to assist APRA in requesting and reviewing the appropriate policies and procedures. This is to be considered akin to providing a roadmap to the trustees operation. For each Operating Standard and Guidance Note requirement, where applicable, the Statement should cross-reference the requirement to the relevant policy and/or a procedure that is in place. This information may be provided in a tabular format.
 
FAQ7.6: When does an RSE licensee need to apply for registration of its registrable supe3.4rannuation entities under section 29C of the Act?
Immediately upon an RSE licence being granted under section 29D or becoming effective under subsection 29DD(1) (as per the time specified on the licence). Once licensed, the transition period will no longer apply to RSE licensees (except in respect to compliance with Regulation 4.17 of the SIS Regulations who RSE licensees who were trustees before 1 July 2004). It is therefore important to follow APRA's requirement for a draft registration application to be provided with the licence application to expedite the registration process.
 
FAQ7.7: Can an RSE licensee continue to accept contributions and make payments whilst APRA is considering an application for registration of registrable superannuation entities under Part 2B of the Act?
Yes, if the application for registration is made and determined before the end of the transition period. However, effective 1 July 2006, Regulation 7.03A(2) of the SIS Regulations will provide that a trustee of an RSE must not accept contributions unless the registrable superannuation entity is registered under Part 2B of the Act. Accepting contributions while the entity is unregistered may lead to an offence under section 34 of the Act being committed.