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Does a bank account need to account for all individual trustees in its ownership or will two suffice? I have a 3 Individual trustee fund I am auditing and the bank account indicates two individual trustees only.
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Hi Stephen
This may be another question where auditors have differing views. Firstly your example is why having a corporate trustee is normally the best trustee structure as you would not have this issue.
My view is if in 2 trustees names in trust for the Fund preferably you would get the third trustee added to the bank account name. If this is not easily done / practical I would accept it as the auditor if a declaration was done by all 3 trustees stating that the bank account is effectively in the name of all trustees on behalf of the Fund.
The regulation of SIS that you are auditing is Regulation 4.09A that requires (per the audit report):
"The assets of the SMSF must be held separately from any assets held by the trustee personally or by a standard employer sponsor or an associate of the standard employer sponsor".
Arguably from an audit perspective this regulation has been complied with if the bank account is clearly in the name of the Fund.
Thanks
SMSF AAA