Issue
Whether the member of the regulated superannuation fund can assign their interest in the fund to another member.
Decision
The benefits of the member cannot be assigned to another member under regulation 13.12 of the Superannuation Industry (Supervision) Regulations 1994 (SIS Regulations).
Facts
A regulated superannuation fund has two members who are husband and wife. However, the husband and wife are currently in the process of a divorce.
Under an order of the Family Court, the wife's benefits must be retained in the fund until she is entitled to receive the benefits, at which time they are to be paid to the husband.
The wife is not presently entitled to the proceeds of the funds. However, the wife agrees to transfer her share of the fund to her former husband.
Reasons for Decision
Regulation 13.12 (SIS Regulations) provides the operating standards for regulated superannuation funds for the purposes of section 31 of the Superannuation Industry (Supervision) Act 1993 (SIS Act). Regulation 13.12 (SIS Regulations) provides that 'the trustee of a fund must not recognise, or in any way encourage or sanction, an assignment of a superannuation interest of a member or beneficiary'.
Accordingly, the trustee cannot recognise any agreement to transfer the wife's benefits in the fund to the husband.