SMSF trustee responsibilities can be challenging for financial advisors. Here we break down the legal duties under SISA and SISR, providing you with a clear understanding of your role, and explain the support Simply SMSF Audits offers in maintaining SMSF compliance.
Financial advisors navigating the SMSF landscape must be aware of trustee legal responsibilities to ensure compliance and successful fund management. This article elucidates the legal duties under the Superannuation Industry (Supervision) Act 1993 (SISA) and the Superannuation Industry (Supervision) Regulations 1994 (SISR), and explains how Simply SMSF Audits can support you in maintaining SMSF compliance.
Under SISA and SISR, trustees shoulder numerous responsibilities, including ensuring the SMSF is for retirement benefits only, adhering to investment restrictions, and maintaining a trust deed and investment strategy. As a financial advisor, you need to comprehend these obligations to guide trustees towards SMSF compliance effectively.
A crucial legal responsibility of an SMSF trustee is ensuring compliance. Audits, mandated by Australian law, examine financial statements, assess regulatory compliance, and detect potential contraventions. Regular audits are vital for transparency, spotting potential issues, and aiding trustees in their rectification.
Advisors must aid trustees in developing a compliant investment strategy, incorporating diversification, risk-return tradeoff, liquidity, and financial sustainability. Trustees should also account for members' personal circumstances and consider life insurance. An annual review is mandatory for ongoing compliance and suitability.
There is where Simply SMSF Audits plays a crucial part. Our team, headed by an experienced auditor provides thorough, efficient, and cost-effective SMSF audit services crucial for verifying compliance and supporting trustee legal responsibilities. We are dedicated to helping advisors like you assist clients in their SMSF journey.
Non-compliance can lead to serious penalties, including fines, disqualification, or imprisonment for trustees. Advisors must emphasise legal obligations when guiding their clients through SMSF management.
Being aware of the legal responsibilities of SMSF trustees enables you as a financial advisor to provide accurate guidance, helping your clients maintain a fully compliant SMSF. Your contribution can significantly shape their successful retirement journey.