These measures are intended to address potential risks and strengthen the regulatory framework in which self-managed super funds (SMSFs) operate.
The measures that affect the investment strategy require the trustee/s to:
- conduct a review of the fund’s investment strategy on a regular basis
- consider insurance for fund members as part of the fund’s investment strategy
These measures are prescribed operating standards for the fund, which means you must ensure they are complied with at all times.
What this means for trustees:
During each income year from 2012/13, you should review your fund’s investment strategy to ensure that it continues to reflect the purpose and circumstances of your fund and its members. These reviews should occur on a regular basis and could be evidenced by documenting decisions made in the minutes of meetings held during the income year. You should also consider insurance for members.
We have provided a free Investment Strategy template that you are welcome to use to help meet the new requirements. You can download it from here.
For more information:
ATO factsheet – Obligations and responsibilities for self-managed super fund trustees
