Page 1589 - Week 08 - Thursday, 28 September 1989
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .
TRUSTEE (AMENDMENT) BILL 1989
MS FOLLETT (Attorney-General) (10.42): I present the Trustee (Amendment) Bill 1989. I move:
That this Bill be agreed to in principle.
The Trustee Act 1957 includes provisions which specify the circumstances and the types of investments in which trustees may invest trust moneys. Under the present law, investment of trust funds in approved building societies is only permissible if, firstly, the building society has carried on business in the Australian Capital Territory for a period of not less than 10 years; secondly, the building society has withdrawable funds of not less than $50m; and, thirdly, the Minister, being the ACT Attorney-General, is satisfied that the building society has complied substantially with the Co-operative Societies Act 1939 during the immediately preceding period of five years.
In recent years, with the growth of building societies, we have seen the establishment in the ACT of a subsidiary of one of Australia's major societies. That organisation, as well as any other building society which does not satisfy the 10-year establishment rule, is unable to be accorded trustee investment status. This limits the operation of such societies as well as reduces the range of approved investment options available to trustees in the ACT.
The proposed amendments will amend item 11 in the second schedule to the Trustee Act 1957 to revise subsection (2A) of paragraph (a). The revision together with a new subsection (2AA) will provide that a building society which has operated in the ACT for less than 10 years may be approved for trustee investment status provided it has the backing, in terms of an irrevocable undertaking for $50m, given by an established building society in a State or territory. The building society giving that undertaking must itself have carried on business for not less than 10 years and have substantially complied with the local law in each State or territory in which it has operated at any time during the immediately preceding period of five years. The ACT based building society must have, of course, also substantially complied with the Co-operative Societies Act 1939 during the period it has carried on business in the ACT.
There are no financial considerations for the ACT Government's expenditure or revenue involved in these proposed amendments. I now present the explanatory memorandum to the Bill.
Debate (on motion by Mr Collaery) adjourned.
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .