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Kylie Wee

Jun 15, 2023

Custodian arrangement to acquire foreign listed shares

in SMSF Technical Forum

Hi there,

Hope you are well.

I will need your expertise on the following scenarios:

Background

1. The shareholder “MP” who is a related party of the Fund (who is not a member & director of the SMSF) holds 146,300 units at £3 POLY, which were subscribed for around 27 April 2022 for £393,131 ($A 700,000 ) at market value.

2. The corporate trustee ATF SMSF wishes to obtain the beneficial rights to those 146,300 units in POLY through “MP” and will pay the Shareholder shortly a price for such exposure.

3. the Shareholder will hold 146,300 units beneficially for SMSF and must pay to SMSF, all dividends, trust distributions, returns of capital, share buy-back prices, distributions of capital, sale prices and other investment returns received by the Shareholder in respect of its investment in POLY within 5 business days of receipt.

4. For this they prepared a bare trust signed on the 28 April 2022, Agreement concerning POLY STOCK ON THE LSE.

Could you please advise that the following structure is allowed by the SISA?

Thank you.

Regards,

Kylie

4 comments

Comments (4)

THE AUDITORS INSTITUTE

Jun 15, 2023

Hi Kylie

What do you mean by "obtain the beneficial rights" to the shares?

Are the "rights" an asset that a SMSF can acquire from a related party?

Thanks

SMSF AA

Kylie Wee

Jun 16, 2023

Replying to

Thank you for your prompt response.

Regards,

Kylie