Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The trustee of a superannuation entity may maintain a reserve of the entity for a particular purpose, unless the governing rules of the entity prohibit the maintenance of a reserve for that purpose.
Governing rules of an RSE must not prohibit reserves to cover operational risk
(2) The governing rules of a registrable superannuation entity must not prohibit the maintenance of a reserve to cover the operational risk relating to the entity.
(3) If the governing rules of a registrable superannuation entity are inconsistent with subsection (2):
(a) subsection (2) prevails; and
(b) the governing rules are invalid, to the extent of the inconsistency.