Awan Hammad

    Hi Alain

    If a SMSF has lent a secured loan to a private company you should obtain a copy of the loan document and try & ascertain if the loan is collectable and made on a commercial basis. If the loan is secured over a property you should obtain a title search and check that a mortgage has been registered. You should request a copy of the valuation of the property that should have been obtained prior to the mortgage loan being made.

    If you are unable to verify the collectability of the loan you should consider issuing a Part A financial qualification.

    You should also check that the Fund’s investment complies with its investment strategy and that the loan has been made on an arm’s length basis and that there is no breach of the in-house asset rules.

    If other members have a view please let the forum know.


    The Auditors Institute


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