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Phuong Hoang Thi Ngo

Mar 06, 2024

Superannuation Financing Deed

in SMSF Technical Forum

Could you please help me your ideas?

A SMSF have a loan for property under LRBA with NAB bank (have Contract of Sale, bare trust already)

For NAB loan docs, client provided

· Credit Contract Details that also mention Superannuation Financing Deed name

· Credit Contract General Terms

but client did not keep Superannuation Financing Deed or maybe the broker did not send it to client at that time.

If only missing Superannuation Financing Deed document, do auditor really need to submit contravention Section 35C(2) or not? . Noted in Management letter in the pass years but client could not find out until now.

Many thanks

2 comments

Comments (2)

THE AUDITORS INSTITUTE

Mar 06, 2024

Hi Phuong

Section 35C(2) requires per the audit report that:

"The trustees must provide the auditor with the necessary documents to complete the audit in

a timely and professional manner; and within 14 days of a written request from the auditor".

You are requesting a copy of the borrowing agreement to ensure compliance with SIS Section 67A that requires that the rights of the lender "are limited to rights relating to the acquirable asset".

My view is that as you have sighted NAB paperwork that supports it being a Superannuation Fund borrowing that you could rely on a declaration from the trustees that the rights of the lender "are limited to rights relating to the acquirable asset".

It would be great to get other forum members views on this question if there are differing opinions.

Thanks

The Auditors Institute

Phuong Hoang Thi Ngo

Mar 06, 2024

Replying to

Thanks a lot