.png)
Can I be provided with some guidance with the following query: Can SMSF's lend to each other/outside non related parties with all the relevant proper loan documents in place ?
top of page
THE AUDITORS INSTITUTE | FORUM
Archived Forums
When you become a member of The Auditors Institute, you immediately gain access to expertise, advocacy for your profession and peace of mind.
Ask a question in our members-only forum or use the search function to find prior technical discussions on your topic. You can expect a response within 24-48hrs.
Disclaimer
The forum is made available by The Auditors Institute Ltd for the benefit of it’s members only, and its primary purpose is to facilitate education, training, and discussion between members. The information and answers provided within the forum are of a general nature and do not consider any specific circumstances, objectives, financial situation or needs related to the matter/s raised. The responses should not be construed as financial advice, and each Member should seek their own professional advice before making any decisions. The Auditors Institute Ltd and its representatives are not responsible for any actions taken based on the information provided in the forum.
bottom of page
Hi Signorina
Cleardocs offer documents for a non bank SMSF borrowing on-line. I would highly recommend that you go to a lawyer that reviews what is being proposed and then prepares the documents rather that it being done on-line.
You need to make sure the related party requirements are complied with along with the LRBA requirements.
I have not had experience with a SMSF lending to another SMSF under a LRBA. Have any other member's seen such an LRBA?
Thanks
SMSF AAA
Hi Signorina
Yes a SMSF can lend money to a non related party. Yes proper loan documentation is required.
From a trustee / audit viewpoint re any SMSF loans consider SIS re:
Section 62 - sole purpose test.
Section 65 - cannot loan money / provide financial assistance to a member or relative.
Section 82-85 - in-house asset rules.
Section 109 - investments to be made on an arm's length basis.
Reg 4.09 - investment strategy.
If a Fund was to borrow from another Fund it would have to meet the LRBA requirements of SIS.
Thanks
SMSF AAA