90 days prior, leaving plenty of time for such advice. Thus, a member will be prompted to give the trustee a notice of intent to split before the merger and the trustee will undertake the split as part of the merger process. If a member wants to apply to split deductible personal contributions, they must give their super fund a NOI before lodging their Superannuation contributions splitting application. Generally contributions can only be split by the trustee of the fund to whom the contributions were made, however section 328 of SISA allows relief from that prohibition in suitable circumstances on application to the relevant regulatory agency. Bankruptcy orders A member’s superannuation that remains in his or her account at the date of bankruptcy is protected from creditors, subject to there being no out-of-character transfers of property or transfers of property to defeat creditors (i.e. while the member was insolvent or about to become insolvent at the time of the transfer). In the latter case, the bankruptcy trustee will issue to the trustee of the superannuation fund an notice”, which requires the superannuation fund trustee to prevent any “account-freezing withdrawals from or roll-overs out of the superannuation account. The bankruptcy trustee will then pursue various remedies to have the frozen funds paid to the bankrupt estate - by agreement of the bankrupt and super fund trustee, or by order of the Official Receiver or a court. In a whole-of-fund ISAT where account freezing notices are current, the transferring trustee may need to await the outcome of the freezing notice, subject to any legal advice obtained by the trustee in relation to this issue. Binding death benefit nominations (BDBNs) All BDBNs attached to member accounts will need to be reviewed by both the transferring and receiving fund to determine their validity and currency (most have a 3-year validity) before and after the ISAT. If a member is a member of both merging funds, a new BDBN may need to be completed with the receiving fund, dealing with both interests. Powers of Attorney and Third party authorities for advisers’ access to account information are all authorities which expire upon an ISAT if the trustee has changed. Family law order/consent order to split superannuation The transferring fund should inform the receiving fund of any member’s account which is subject to an agreement or order to split superannuation which has not been completed. It should also inform
90 days prior, leaving plenty of time for such advice. Thus, a member will be prompted to give the trustee a notice of intent to split before the merger and the trustee will undertake the split as part of the merger process. If a member wants to apply to split deductible personal contributions, they must give their super fund a NOI before lodging their Superannuation contributions splitting application. Generally contributions can only be split by the trustee of the fund to whom the contributions were made, however section 328 of SISA allows relief from that prohibition in suitable circumstances on application to the relevant regulatory agency. Bankruptcy orders A member’s superannuation that remains in his or her account at the date of bankruptcy is protected from creditors, subject to there being no out-of-character transfers of property or transfers of property to defeat creditors (i.e. while the member was insolvent or about to become insolvent at the time of the transfer). In the latter case, the bankruptcy trustee will issue to the trustee of the superannuation fund an “account-freezing notice”, which requires the superannuation fund trustee to prevent any withdrawals from or roll-overs out of the superannuation account. The bankruptcy trustee will then pursue various remedies to have the frozen funds paid to the bankrupt estate - by agreement of the bankrupt and super fund trustee, or by order of the Official Receiver or a court. In a whole-of-fund ISAT where account freezing notices are current, the transferring trustee may need to await the outcome of the freezing notice, subject to any legal advice obtained by the trustee in relation to this issue. Binding death benefit nominations (BDBNs) All BDBNs attached to member accounts will need to be reviewed by both the transferring and receiving fund to determine their validity and currency (most have a 3-year validity) before and after the ISAT. If a member is a member of both merging funds, a new BDBN may need to be completed with the receiving fund, dealing with both interests. Powers of Attorney and Third party authorities for advisers’ access to account information are all authorities which expire upon an ISAT if the trustee has changed. Family law order/consent order to split superannuation The transferring fund should inform the receiving fund of any member’s account which is subject to an agreement or order to split superannuation which has not been completed. It should also inform
ISAT_Protocol_v4.0.docx