Funds SA is incorporated under South Australian legislation as an instrumentality of the Crown of South Australia. Funds SA adheres to obligations applicable to South Australian public sector entities in addition to aligning with various prudential and conduct obligations and best practice.
Funds SA Act and Regulations
Funds SA was established in July 1995 under the Superannuation Funds Management Corporation of South Australia Act 1995 (SA) (Funds SA Act). It became the successor organisation to the South Australian Superannuation Fund Investment Trust. Funds SA is also governed by the Superannuation Funds Management Corporation of South Australia Regulations 2025 (SA).
The Funds SA Act prescribes Funds SA’s function and powers, establishes Funds SA’s Board of Directors, and sets out various other governance obligations including in respect of audit and public reporting.
See Funds SA’s governing legislation and regulations here
Funds SA’s function, as set down in the Funds SA Act, is to invest and manage certain South Australian public sector superannuation funds, and nominated funds of approved authorities, pursuant to investment strategies formulated by Funds SA and such other functions that are assigned to Funds SA under legislation.
Under the Funds SA Act, Funds SA’s objective in preforming its functions is to achieve the highest return possible on investment of the funds while having proper regard for the need to maintain the risks relating to investment at an acceptable level and the need for liquidity in the funds.
Department of Premier and Cabinet Circulars and Treasurer’s Instructions
As an instrumentality of the Crown, Funds SA must adhere to South Australian Premier and Cabinet Circulars to the extent that it would not impede Funds SA achieving its statutorily prescribed investment function. These circulars set high standards for South Australian public sector entities including in relation to cyber security, climate and privacy.
See Department of Premier and Cabinet Circulars here
As a public authority, Funds SA must also adhere to certain Treasurer’s Instructions issued by the South Australian Treasurer under section 41 of the Public Finance & Audit Act 1987 (SA). Treasurer’s Instructions set out minimum obligations including in respect of financial record keeping, financial statements, and financial administration.
Prudential and Conduct Regulation
As an instrumentality of the Crown, Funds SA is exempt from certain Federal legislation. In particular, Funds SA does not hold an Australian financial services (AFS) licence and certain provisions (including the financial product disclosure provisions) of the Corporations Act do not apply to Funds SA.
The Commonwealth and South Australian Governments have entered into a Heads of Agreement under which Funds SA remains exempt from limited prudential and conduct regulations subject to Funds SA conforming with the principles that underpin Federal prudential and conduct obligations that apply to regulated superannuation funds. Funds SA recognises the benefit to our clients in doing so.