Issue
1
Has a contravention of section 65 of the Superannuation Industry (Supervision) Act 1993 (SISA) occurred where the trustees have loaned money to a member?
Decision
2
Yes. A contravention of section 65 of the SISA has occurred.
Facts
3
The superannuation fund was established in 1993.
4
The superannuation fund loaned money to a member after 16 December 1985.
Reasons for Decision
5
Section 65 of the SISA prohibits the trustee or the investment manager of a regulated superannuation fund from lending money of the fund to a member or a relative of a member.
6
The trustees of the fund have loaned money to a member and therefore have contravened section 65 of the SISA.
7
As the loan was made after 16 December 1985, the exception in subsection 65(2) of the SISA does not apply.