I am auditing a fund that holds property insurance. The policy owner is an individual (who is one of two individual and does not mention the SMSF.
Which compliance sections/regulations come into play in this situation? I've not come across this before.
Thank you
Hi Jason
The section / regulation of most relevance is Regulation 4.09A that requires (per the audit report) that:
"The assets of the SMSF must be held separately from any assets held by the trustee
personally".
My view is that it would not be a breach that you would need to qualify on however you would raise a management letter point that the insurance should be in the name of the 2 individual trustees in trust for the Fund.
If any forum members have a view please let the forum know.
Thanks
The Auditors Institute