This exposure draft of legislation (and explanatory material) and draft guidelines provide a new regulatory framework for public ancillary funds.
The exposure draft among other things:
- gives the Treasurer the power to make legislative guidelines about the establishment and maintenance of public ancillary funds;
- gives the Commissioner the power to impose administrative penalties on trustees that fail to comply with the guidelines and to remove or suspend trustees of non-complying funds; and
- defers the start date of 1 July 2011 as announced in the Budget measure of 2010-11 until 1 January 2012.
The legislative guidelines provide for improved standards of governance and accountability, ensure regular valuation of assets, clarify investment and distribution rules, and provide for a system of administrative penalties.