POWERED BY MOMENTUM MEDIA
SMSFs could be drawn into Royal Commission
The SMSF Association has warned that self-managed superannuation funds (SMSFs) may get dragged into the Royal Commission into misconduct in the banking, superannuation and financial services industry as industry funds seek to deflect attention.
Out-going SMSF Association chairman, Andrew Gale told the organisation’s national conference that although the terms of reference of the Royal Commission excluded SMSFs, there remained the potential for our sector to be included in the work of the inquiry via three key avenues:
- The Advice and conduct issues of Australian Financial Services Licensees are included specifically in the terms of reference, and this could include SMSF advice and recommendations to establish an SMSF.
- Secondly, with large superannuation funds included in the terms of reference and under scrutiny, we expect the large fund sector, especially industry funds, to seek to deflect attention by pointing out issues with SMSFs. Issues raised could include minimum reasonable account balance sizes for SMSFs and Limited Recourse Borrowing Arrangements.
- Finally, there is a small possibility that the terms of reference of the Royal Commission are expanded to include SMSFs or related fields.
“On a positive note, it’s worth noting that prior enquiries into superannuation have found the SMSF sector to be functionally well with a high level of compliance,” Gale said.
Recommended for you
The impact of identity theft and its threat to superannuation savings were highlighted in a case that went before the Federal Court at the end of 2023.
A recent NSW Supreme Court decision is an important reminder that while super funds may be subject to restrictive superannuation and tax laws, in essence they are still a trust and subject to equitable and common law claims, says a legal expert.
New research from the University of Adelaide has found SMSFs outperformed APRA funds by more than 4 per cent in 2021–22.
The SMSF Association has made a number of policy recommendations for the superannuation sector in its pre-budget submission to the government.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
