A partner with international law firm Gadens has said SMSF trustees should be subject to compulsory advice or education before they “jump right in” to the SMSF space.
Gadens partner Kathleen Conroy told SMSF Adviser a significant issue in the SMSF sector is trustees’ lack of knowledge about SMSFs.
“I would say 90 per cent of the clients that I speak to about SMSFs do not understand it, they don’t understand the basic concept and certainly don’t appreciate their obligations as trustees,” she said.
“So, one of my big things is that there should be compulsory advice or education for trustees; it will make them stop and think before they jump right in.”
According to Ms Conroy, people are stepping in as trustees when they have no idea of their responsibilities.
“They don’t know the law. It is not that people are setting out to be criminals; they just don’t realise they are not complying,” she said.
Ms Conroy added that the regulations surrounding SMSFs are not problematic, but trustees’ lack of appreciation for their obligations while holding an SMSF is.
“In my mind, the [SMSF] legislation is quite strict and very comprehensive and it is worth asking the question… is it regulation that you should be concerned about or compliance?” she said.
“I am not saying [the legislation] is perfect by any means and there are certain things that could be looked at, but as a whole, the legislation is there,” she added.
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
23 Jun 2017Trustees reminded of ‘positive’ CGT news as EOFY loomsBy Katarina Taurian
23 Jun 2017SMSF practitioners told to reassure clients in 30 June lead upBy Miranda Brownlee
23 Jun 2017SMSFs warned on 30 June cut off for electronic transfersBy Staff Reporter
22 Jun 2017Westpac veteran and SMSF exec set to departBy Staff Reporter
22 Jun 2017ATO sets compliance targets for auditors in 2017-18By Miranda Brownlee
22 Jun 2017CGT relief still plaguing trustees, says former ATO execBy Miranda Brownlee
- view all
Trustees reminded of ‘positive’ CGT news as EOFY looms
A capital gains tax (CGT) issue that was causing confusion in the industry has been cleared up by the ATO, and professionals are being remin...read more
SMSF practitioners told to reassure clients in 30 June lead up
With the focus predominantly on super members with above $1.6 million, it may be worth practitioners informing clients unaffected by the ref...read more
SMSFs warned on 30 June cut off for electronic transfers
With a significant portion of Australians missing the 30 June cut off last year when making non-concessional contributions, Colonial First S...read more
- view all