I will be auditing fund that owns an insurance policy for the property held in the fund. The same policy also covers the member's personal investment property. The policy has two owners/holders: the corporate trustee ATF the smsf, and the individuals who own another property outside of super.
My view is that if the insurance has multiple policy owners clearly distinguished, and each premium is itemised for each property, and the fund only pays the premium relating to the fund's property, then no compliance breach has occurred. Is this correct?
Hi Jason
I have not seen this before. My view is if the policy clearly distinguishes each policy owner and the premium payable by each re each property then you do not have a compliance issue.
The regulation that you are auditing is SIS Regulation 4.09A that states:
"A trustee of a regulated superannuation fund that is a self managed superannuation fund must keep the money and other assets of the fund separate from any money and assets, respectively:
(a) that are held by the trustee personally; or
(b) that are money or assets, as the case may be, of a standard employer - sponsor, or an associate of a standard employer - sponsor, of the fund."
Thanks
The Auditors Institute