Appointing a statutory supervisor

The main duties of a statutory supervisor

The role of a statutory supervisor is to provide an important safeguard for the residents of a retirement village. Statutory supervisors are appointed under a deed of supervision. This is a document between themselves and the retirement village operator, and sets out the terms and conditions of their appointment as statutory supervisor.

Appointment of a statutory supervisor

The Retirement Villages Act 2003 requires the operator of a retirement village to appoint a statutory supervisor, unless the Registrar of Retirement Villages exempts a village's operator from doing so.

A person can only be appointed as statutory supervisor to a retirement village if they're licensed under the Financial Markets Supervisors Act 2011.

Duties of a statutory supervisor

The statutory supervisor has a number of duties including:

  • acting as an independent stakeholder for deposits and progress payments by residents to village operators
  • monitoring the financial position of the village
  • reporting annually to the Registrar of Retirement Villages and residents on the performance of their duties, and
  • carrying out any other functions specified in the Act or the deed of supervision with the village.

Where the financial position of the village, security of residents or management of the village is inadequate, the statutory supervisor can:

  • direct the operator to provide information to residents
  • direct the operator to operate the village in a specified way, or
  • apply to the Court for orders to address any concerns or mitigate further risk to residents.

Visit the following websites for more information about the role and responsibilities of statutory supervisors.