Acquiring assets from related parties

Your fund can't acquire an asset from a related party unless it is acquired at market value and is:

  • a listed security (for example, shares, units or bonds listed on an approved stock exchange)
  • business real property
  • an in-house asset, provided the market value of your fund’s in-house assets does not exceed 5% of the total market value of your fund's assets
  • an asset specifically excluded from being an in-house asset.

If the asset is acquired at less than market value (including no cost, such as an in specie contribution), the difference between the market value and the amount actually paid should be recorded as a contribution.

The Valuation guidelines for self-managed super funds will help you comply with these requirements.

Duration 2:26. A transcript of Arm's length is also available..


See also:

Last modified: 11 Feb 2016QC 42465