SUPERANNUATION INDUSTRY (SUPERVISION) ACT 1993 - SECT 65 Lending to members of regulated superannuation fund prohibited
SUPERANNUATION INDUSTRY (SUPERVISION) ACT 1993 - SECT 65
Lending to members of regulated superannuation fund prohibited(1) A trustee or an investment manager of a regulated superannuation fund must not:
(a) lend money of the fund to:
(ii) a relative of a member of the fund; or
(b) give any other financial assistance using the resources of the fund to:
(ii) a relative of a member of the fund.
Note: Section 166 imposes an administrative penalty for a contravention of subsection (1) by a trustee in relation to a self managed superannuation fund.
Exception--private sector funds
(2) Subsection (1) does not prohibit the lending of money of a private sector fund established before 16 December 1985 to a member if the trustee of the fund, on or before that date:
(a) had express power to lend money to members; or
(b) lent money to members and that lending was not expressly prohibited by the governing rules of the fund.
Exception--public sector funds
(3) Subsection (1) does not prohibit the lending of money of a public sector fund established before 25 May 1988 to a member if the trustee of the fund, on or before that date:
(a) had express power to lend money to members; or
(b) lent money to members and that lending was not expressly prohibited by the governing rules of the fund.
Variation of governing rules
(a) subsection (2) or (3) applies to a regulated superannuation fund; and
(b) at the beginning of the fund's 1994 - 95 year of income, a provision included in the governing rules of the fund authorised the lending of the fund's money to members;
a variation of that provision is void unless the variation:
(c) limits the power to lend the fund's money to members; or
(d) removes the power to lend the fund's money to members.
(5) Subsection (1) is a civil penalty provision as defined by section 193, and Part 21 therefore provides for civil and criminal consequences of contravening, or of being involved in a contravention of, that subsection.
(7) Nothing in Part 8 limits the operation of this
section.