ASIC has brought charges against Gerard Little, a self managed superannuation fund (SMSF) trustee, for a breach of the Superannuation Industry Supervision (SIS) Act.
In the Downing Centre Local Court, Little was charged under sections 62 and 202 of the SIS Act for failing to ensure his SMSF, called Little Super Fund (LSF), was maintained in a manner that satisfied the sole purpose test.
Under the SIS Act, SMSF trustees must operate their fund for the sole purpose of providing retirement savings for the fund's members.
The regulator alleges Little, as trustee of LSF, accepted the preserved benefits of 121 superannuants, worth $3.5 million, into the bank account of the fund.
These monies were then rolled over into 11 other complying superannuation funds.
ASIC claims Little breached the SIS Act when he used LSF to access these funds illegally, withdrawing a portion and distributing it among the original superannuants.
It is also alleged that from this transaction Little retained $685,000 for himself as a commission for his services.
The corporate watchdog has alleged Little knew the rolled over super benefits had to be preserved until retirement age, but had no intention of abiding by the conditions.
The Commonwealth Director of Public Prosecutions is prosecuting the matter, which returns to the Downing centre Local Court on December 16.
The action is the second such case where ASIC has used a breach of the sole purpose test to prosecute an SMSF trustee.
In August, Atan Kassongo was charged with the same offence after he allegedly gained early access to superannuation benefits illegally.
