The responsibilities of SMSF trustees to all fund members are often misunderstood and unappreciated by their critics, says the SMSF Professionals’ Association of Australia (SPAA).
SPAA technical and professional standards director Graeme Colley said SMSF trustees adhere to “their legal responsibilities” which are “wide-ranging and onerous”.
“There is a common misconception that trustees are somehow a ‘law unto themselves’, but nothing could be further from the truth. Their legal responsibilities are wide-ranging and onerous, and penalties apply if they don’t comply,” Mr Colley said.
“In SPAA’s experience, trustees have largely accepted these responsibilities, showing a capacity to quickly adapt to any changes in the rules.
“Having set up their SMSFs to ensure they are self-sufficient in retirement, they understand better than anyone the importance of complying with the legislation to ensure the fund works to the benefit of all members,” Mr Colley added.
SPAA said under the Superannuation Industry (Supervision) Act 1993 ('SIS Act') trustees have a legal obligation to act honestly in all matters concerning fraud.
“[They also must] exercise the same degree of care as any “ordinary person” would exercise in dealing with property of another, [and] exercise their powers and duties in the interests of beneficiaries,” a statement from SPAA said.
“In addition, trustees are obliged, among other things, to execute the terms of the trust deed; defend the trust; be impartial among beneficiaries; account for actions and keep beneficiaries informed; not delegate; not profit; and not be in a conflict of interest position,” Mr Colley said.
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
- 22 Aug 2017Contentious views on segregation locked inBy Katarina Taurian
- 22 Aug 2017Contributions spike for 2016-17 financial yearBy Staff Reporter
- 22 Aug 2017ATO targeting illegal retirement schemesBy Staff Reporter
- 22 Aug 2017Finalists announced for landmark new awards programBy Staff Reporter
- 22 Aug 2017SMSFs cautioned on ECPI trap with excess amountsBy Miranda Brownlee
- 21 Aug 2017ATO releases position paper, penalties approachBy Katarina Taurian
- view all
- Finalists announced for landmark new awards program
SMSF Adviser, together with SuperConcepts, is pleased to announce the finalists for the inaugural SMSF and Accounting Awards. ...read more
- view all