Awan Hammad

    Hi Kylie

    Yes there is arguably a breach of SIS Regulation 4.09A as Fund assets have not been kept seperate from personal assets. The amount involved may not be a mateial amount so there arguably may be no requirement to qualify the audit report or lodge an auditor contravention notice re the breach.

    The audit report does not sign off on section 52B of SIS and you could ignore this section given this and that it is the same rule as in SIS regulation 4.09A.

    Given the property has not been purchased I would expect that the trustees would sell the furniture if they are no longer needed.

    If the furniture was being used by the member (& no rent being paid) you would have a breach of the sole pupose test under setction 62 of SIS. I would request a declaration that the furniture is not being used by the member. I note that the Fund could rent the furniture to a member if it was an appropriate investment and was under the 5% in-house asset limit (re lease of an asset to a related party other than re business real property).


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