Sent: 06-09-2011 09:47:02
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Two New Draft Super Statements from APRA
Last week the Australian Prudential Regulation Authority released two draft practice guides for large super funds. One deals with the super contributions and the other with super benefit payments.
These two new draft standards replace the existing documents released about these subjects.
In these new versions the APRA has decided to avoid simply restating the existing laws. In both new guides APRA makes the following point:
Under trust law, the trustee has a legal obligation to comply with the fund's governing rules to the extent these rules are not inconsistent with applicable superannuation laws or other laws. It is good practice for the trustee to ensure that there are no contradictions or inconsistencies between the requirements of the SIS payment standards and the governing rules of the fund, and to take appropriate legal or other action to resolve any anomalies. Where the governing rules provide for a higher standard for preservation than the SIS Act or SIS Regulations, the governing rules apply and it is good practice for the trustee to disclose this fact to members.
It is true that this is information for large funds but one couldn't deny that this is good advice to any super fund.
In relation to transferring money to an SMSF, APRA tells large funds that they need to have proper risk management processes in place to avoid fraud or theft. APRA suggests the following checks:
- proof of identity checks of the member,
- checks that the SMSF is a regulated SMSF via the ATO's Super Fund Lookup website,
- checks that the applicant is a member of the SMSF using the ATO's SMSF member verification service;
- checks on the rollover or transfer paperwork, e.g. matching bank account, cheque/EFTdetails
- any other checks that are reasonable in order to confirm the validity of the rollover or transfer,
APRA goes on to say to large fund trustees, "generally, once these checks are complete, unless there are still reasonable grounds for suspicion that are being pursued, the trustee is expected to promptly rollover or transfer the amount to the SMSF according to the member's valid request and in accordance with the portability rules...."
All this seems reasonable enough.
Finally please consider purchasing a copy of this book "A How To Book Of Self Managed Super Funds". You can look at the contents page at the following link: http://www.atcbiz.com.au/r.php?r=0mjd6ne
For details of the changes made from version 4 to version 5 visit: http://www.atcbiz.com.au/r.php?r=d5xcpch
As you'll see from the list there have been many changes.
Two purchase options are available - once only subscription - $55 inc GST - or an annual subscription will gives you access to all the updates made throughout the year ($120 inc GST). The book can be purchased at the following link: http://www.atcbiz.com.au/r.php?r=5a4agqb
This email is general in nature only and does not constitute or convey specific or professional advice. Legislation changes may occur quickly. Formal advice should be sought before acting in any of the areas discussed. Be aware that the information in these articles may become innaccurate with time. Responsibility is disclaimed for any inaccuracies, errors or omissions. Particular investments are neither invited nor recommended and hence this publication is not "financial product advice" as defined in Section 766B of the above legislation. All expressions of opinion by contributors are published on the basis that they are not to be regarded as expressing the official opinion of any other person or entity unless expressly stated. No responsibility for the accuracy of the opinions or information contained in the contributor's articles is accepted by any other person or entity. Copyright: This publication is copyright. If you wish to reproduce this article you require a license, which can be purchased here, to do so.