Related Entities

Related entities in an SMSF can create significant compliance risk where a fund invests in, leases to, lends to, or otherwise deals with parties connected to its members. These arrangements require careful identification, annual review and clear evidence that each transaction is conducted on arm’s length terms and complies with the SIS rules. Our SMSF related entity guidance helps professionals recognise common risk areas, including in-house assets, related party leases

The Reg 13.22C Rule Everyone Forgets

SMSF compliance is not only about what a related unit trust holds today, it’s also about what it held in the past. In this article, I discuss the “forgotten” Reg 13.22C rule that can permanently convert an otherwise-compliant unit trust into an in-house asset. The problem is that a breach can arise even where the trust appears compliant at the time the SMSF acquires units due to the three-year asset look-back rule. Here's what you need to know.

Shelley Banton

Apr 85 min read