Hi,
Thanks for the response.
From the information I gathered, I was told that when the nomination occurs, it creates a contractual rights from the members to the SMSF.
These rights constitute “property” for the purposes of the SIS Act and cannot be acquired from a related party.
Further, per the SMSFR 2010/1, para 10 states
”<i>The term property is not defined in the SISA and therefore takes on its ordinary meaning. It is the Commissioner’s view that the phrase ‘any form of property’ has a very wide meaning. It includes every type of right,<sup>[9]</sup> interest or thing of value that is legally capable of ownership and encompasses both real property and personal property. While assignability is generally a characteristic of a proprietary right it is not in all cases an essential characteristic”</i>
Also para 14 “An asset is acquired whether it is an asset that exists prior to its transfer or assignment to the SMSF or it is an asset (for example, rights<sup title=”Foot note 14″><span class=”from_link”>[14]</span></sup> under a contract) that upon its creation is acquired by the trustee or investment manager”,
and para 22 “The acquisition of the right or option contravenes subsection 66(1) unless an exception applies.<sup title=”Foot note 17″><span class=”from_link”>[17]</span></sup> The acquisition of the underlying asset contravenes subsection 66(1) unless an exception applies.”
What is your thought on this?