The self-managed superannuation funds sounds complicated to some. It isn’t really as complicated as that it sounds. When you know more about this fund, you will see that it isn’t as hard as what it really look like. There are just a few things about the SMSF investment strategies that you should be aware of, before you are switching to this super fund. Here is more information about the investment strategies about the SMSF.
Some of the changes to the superannuation rules
With all the set of rules that you get when you are switching to the self-managed superannuation fund, you should also know about some of the changes that you should be aware of. These changes are to provide advice for the trustees of the SMSF to make sure that they meet all the obligations of the fund. This new changes are affective since 7 August 2012 and if you don’t have these chances in place, you can have a penalty of about 100 penalty units that can mean up to $17 000 penalty fees. The three changes are as follow:checkout latest updates at Smsfselfmanagedsuperfund.com.au
Insurance is required as part of the SMSF investment strategy
The first change that they have made with the rules is that there must be an insurance as part of your and the trustee’s investment strategy when you are switching to self-managed superannuation funds. This means that the trustees must consider if they need insurance policies for the members. You don’t need to have insurance on all the trustees; they only need proof that you and the trustees have considered it in the investment strategy documentation.
You need to proof that it isn’t necessary to have insurance policies for all the members or you need to show why you have insurance on your trustees.
Having the right documentation when deciding to make use of insurance policies
When the trustees deciding that it is important to have insurance policies for all their trustees, then you should have the documentation to form part of the self-managed superannuation fund’s investment strategies. The trustees will need to document the review of insurances as part of their strategy. An example of such documentation is:
• It is a simple document just stating that: The trustees have considered all the insurance needs of members or trustees of the fund and that they have determined that the insurances held by the members within the fund continue suitable.
Must transfer trustees insurance into the fund
The third change of the self-managed superannuation fund is that all the existing policies into the SMSF. Everyone that is trustees of this SMSF should make sure that all the existing policies of all the trustees are put into the fund.visit their latest blog post to get information.
It is important to know all the new chances that are put into the SMSF. If you don’t have all the changes into your fund, you can have serious consequences. Make sure that you stay up to date with the changes of the self-managed superannuation fund to make sure that you and the trustees won’t pay any penalties.