COMPLIANCE
SMSF asset compliance considerations
Investing in certain asset classes or implementing particular structures to do so can result in additional compliance issues for SMSFs. Mark Ellem identifies areas where trustees will need to pay extra attention.
MARK ELLEM is head of education at Accurium.
When an SMSF considers acquiring an asset or making a new investment, there are several compliance rules and issues that need to be considered at the time of acquisition. For example: • whether the asset can be acquired from a related party, • does it fit within the fund’s investment strategy, • will the investment be regarded as an in-house asset, • does the acquisition meet the sole purpose test, and • is the acquisition or investment permitted
under the trust deed. In addition to these considerations at the time of acquisition, the ongoing and potential future compliance and audit requirements should also be factored in when the trustees are weighing up whether a particular investment is one the SMSF should be making. SMSFs can have additional layers of compliance when compared to using other non-super structures when acquiring and holding an asset. These ongoing compliance Continued on next page
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