Self-managed superannuation fund (SMSF) trustees have ultimate control over the investments of the fund, so long as all investments are made in conjunction with the fund’s investment strategy, the sole purpose test and 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, and 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, you should be able to:
• identify the obligations associated with giving effect and formulating an investment strategy
• consider the sole purpose test with regards to making investments in an SMSF
• describe the prohibitions that an SMSF trustee is faced with in regards to investments 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 relating specifically to collectable and personal-use assets that apply only to SMSFs
• describe the in-house asset rules and how they apply
• consider the use of reserves in an SMSF.
The SMSF Association SMSF Specialist Advisor™ accreditation is recognised industry-wide as a comprehensive and challenging assessment of an individual’s ability as an SMSF advisor.
The purpose of the SSA accreditation is to qualify individuals who apply a broad and coherent knowledge in a range of contexts to undertake professional work and as a pathway to further learning. The SSA™ accreditation program analyses the unique intersection of the Superannuation Industry (Supervision) Act 1993 (SISA), the Superannuation Industry (Supervision) Regulations 1993 (SISR) and the Income Taxation Assessment Acts 1936 and 1997 (ITAA).
To be eligible for recognition as an SMSF Specialist Advisor (SSA™) designation with the SMSF Association you are required to complete 9 modules and successfully complete a 2-hour online examination with a pass mark of 50% or higher. The modules offer deep technical content and focus on examining, in detail, the array of regulations and legislation that underpin the operation of an SMSF.
The modules cover the following topics:
1. SMSF regulatory framework
2. Regulating SMSFs
3. Contribution standards
4. Investing in an SMSF
5. Taxing an SMSF
6. Members interests and preservation standards
7. Payment standards and paying a benefit
8. Taxing superannuation payments
9. SMSF controls – planning for life events
On successful completion of this subject, participants should be able to:
• Research and explain the legal regulations that apply to SMSFs.
• Research and critically evaluate the special taxation rules applicable to superannuation contributions, superannuation funds and superannuation benefits.
• Develop and critically evaluate an SMSF strategy to deal with regulatory and tax requirements in a complex SMSF scenario.
• Justify an SMSF strategy to deal with regulatory and tax requirements in a complex SMSF scenario.
Graduates of the SSA accreditation will have a broad and coherent theoretical and technical knowledge in one or more disciplines of areas of SMSF practice.
Graduates of the of the SSA accreditation will have well-developed cognitive, technical and communication skills to select and apply methods and technologies to:
• Analyse and evaluate information to complete a range of activities
• Analyse, generate and transmit solutions to unpredictable and sometimes complex problems
• Transmit knowledge, skills and ideas to others
APPLICATION OF KNOWLEDGE AND SKILLS
Graduates of the SSA accreditation will apply SMSF industry knowledge and skills to demonstrate autonomy, well-developed judgement and responsibility;
• In contexts that require self-directed work and learning
• Within broad parameters to provide specialist advise and functions
FASEA CPD CATEGORIES
The SSA designation is aligned to competencies under the FASEA CPD categories. The designation supports demonstration for ongoing professional practice in the categories of:
• Technical competence
• Regulatory compliance and consumer protection
• Client care and practice