All Self-Managed Superannuation Fund (SMSF) trustees must formulate, review regularly and give effect to an investment strategy for their SMSF that complies with the Superannuation Industry (Supervision) Act 1993 (SIS Act), Superannuation Industry (Supervision) Regulations 1994 (SIS Regulations) and the relevant Australian Taxation Office (ATO) requirements.
Cleardocs has recently released a comprehensive 'SMSF Investment Strategy' document package for creating an investment strategy for SMSFs.Kate Latta, Maddocks Lawyers
All SMSFs must formulate, review regularly and give effect to an investment strategy. Cleardocs has made available a comprehensive 'SMSF Investment Strategy' document package by which advisers and trustees can create an investment strategy to ensure an SMSF's compliance with the SIS Act, SIS Regulations and ATO guidance.
Section 52(6) of the SIS Act and regulation 4.09(2) of the SIS Regulations, require that a trustee must formulate, review regularly and give effect to an investment strategy for the whole of the fund, and for each investment option offered by the trustee in the fund, taking into account:
Failure to comply with these requirements may carry a penalty of up to $11,000.
Once the trustee has formulated an investment strategy, the fund's investments should be consistent with that strategy.
The ATO provides the following guidance on its website as to what trustees should consider when formulating an investment strategy:
The Cleardocs SMSF Investment Strategy document package allows you to create an investment strategy for an SMSF.
The Cleardocs document package has been drafted in contemplation of the requirements imposed by the SIS Act and the SIS Regulations. The product:
allows the trustee to permit, or prohibit, investments in derivatives.
Generally speaking, a derivative is a financial contract or instrument that derives its value by reference to the value of other underlying securities, or other assets or indices. Examples of derivatives include swaps, options, forwards, futures, warrants, contracts for difference and other related instruments;
The SMSF Investment Strategy information here should be considered general in nature, and neither the product nor the documents generated through Cleardocs should be interpreted as financial product advice. You must always seek your own independent legal, accounting and financial advice about your particular situation.
For more information on the importance of a comprehensive SMSF investment strategy, please contact Maddocks on (03) 9288 0555 and ask to speak to a member of the General Commercial team.
You can read earlier articles on a wide range of SMSF topics.
Daniel is a Senior Associate in the Maddocks Tax & Revenue team.Daniel advises extensively in the following areas:
His advice covers both direct and indirect tax considerations.
Prior to joining Maddocks, Daniel worked at a Big Four Chartered Accounting Firm focusing on tax consulting for mergers and acquisitions.
The legal information and commentary on this site is general only. Documents ordered through Cleardocs affect the user's legal rights and liabilities. To assess their suitability for the user, legal accounting and financial advice must be obtained.