The Australian Taxation Office (ATO) recently advised of certain checks you should undertake before acquiring an asset through your SMSF.  This is particularly important in light of the fraudulent activity occurring from international companies. Trustees should adhere to the following:

1.    Review the Australian Securities and Investments Commission (ASIC) website for companies that are linked to unlicensed or illegal offshore investment activity;  https://www.moneysmart.gov.au/scams/companies-you-should-not-deal-with/unlicensed-companies-list/a

2.    Review the company's website and read their annual reports.

3.    Search the internet for the company and its associates, they may be mentioned in forums or discussed on other website / blogs.

4.    Ask your financial advisor for their opinion / recommendation about the investment.

5.    If you do decide to invest ensure that when you transfer the money the bank account has the same name as the company.  Particularly if it is an overseas bank account.
6.    Advise ASIC if you have any concerns about the company as they may be able to assist.

Section 52 (2) (b) of the Superannuation Industry Supervision Act 1993, states that trustees should in all matters relating to the entity exercise the same degree of care, skill and diligence as an ordinary prudent person would exercise in dealing with property of another for whom the person felt morally bound to provide.