[Awan Hammad]

Hi Kylie

Section 65 of SIS states that a Fund cannot lend money or provide financial assistance to a member or a relative of the member.

Relative is defined in section 10 of SIS as:

relative of an individual means the following:

(a) a parent, grandparent, brother, sister, uncle, aunt, nephew, niece, lineal descendant or adopted child of the individual or of his or her spouse;

(b) a spouse of the individual or of any other individual referred to in paragraph

As an ex-spouse is not considered a relative re this section a Fund can lend money to them on an arm’s length basis. (The same consideration applies for the in-house asset rules)

Thanks

SMSF AAA