SUPERANNUATION INDUSTRY (SUPERVISION) ACT 1993

PART 7 - PROVISIONS APPLYING ONLY TO REGULATED SUPERANNUATION FUNDS  

SECTION 65   LENDING TO MEMBERS OF REGULATED SUPERANNUATION FUND PROHIBITED  

65(1)   Prohibition.  

A trustee or an investment manager of a regulated superannuation fund must not:


(a) lend money of the fund to:


(i) a member of the fund; or

(ii) a relative of a member of the fund; or


(b) give any other financial assistance using the resources of the fund to:


(i) a member of the fund; or

(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.

65(2)   Exception - private sector funds.  

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.

65(3)   Exception - public sector funds.  

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.

65(4)   Variation of governing rules.  

If:


(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.

65(5)   Civil penalty provision.  

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.

65(6)  
(Repealed by No 134 of 2008)

65(7)   Effect of Part 8.  

Nothing in Part 8 limits the operation of this section.


 

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