January 2, 2020 @ 5:30 am - January 2, 2025 @ 5:30 am$275
Self-managed superannuation fund (SMSF) trustees have ultimate control over the investments of the fund. To protect the investments of the fund, and to avoid ATO penalties and possible legal disputes, its essential the trustee’s investment decisions are made in accordance with the fund’s trust deed, investment strategy, the sole purpose test and are within the investment restrictions outlined in the Superannuation Industry (Supervision) Act 1993 (Cth) (SIS Act) and Superannuation Industry (Supervision) Regulations 1994 (Cth) (SIS Regulations).
The module analyses the requirements for an SMSF to have an investment strategy in accordance with the trustee covenants and operating standards for investments. It also revisits the concept of the sole purpose test, with a deeper review of what the test requires.
Having determined a fund’s investment strategy, this module investigates the numerous investment restrictions placed on superannuation trustees, and more specifically SMSF trustees. We will also explore the exceptions to the rules that allow SMSFs and small Australian Prudential Regulation Authority (APRA) funds (SAFs) to acquire certain assets from related parties that other funds are unable to acquire.
On completing this module, participants should be able to:
- identify the obligations associated with formulating and giving effect to an investment strategy
- consider the sole purpose test with regards to making investments in an SMSF
- describe the investment prohibitions that apply to SMSFs and the exceptions to those prohibitions
- outline the assets that the trustees of an SMSF can acquire from a related party of the fund
- define a related party of the fund
- understand the rules which apply to collectable and personal-use assets acquired and held by an SMSF
- describe the in-house asset rules and how they apply
- consider the use of reserves in an SMSF.