Business News

DomaCom learns Fed Court decision

SMSF; advice; conflicted remuneration

A Queensland SMSF advice business will face court in the first legal case dealing with conflicted remuneration related to financial advice.

The Federal Court has ruled against SMSFs investing in DomaCom sub-funds owning properties leased to related parties.

The ruling, made yesterday evening, only affects an SMSF if the investment in a sub-fund constitutes 5 per cent or more of its total assets.

The ruling has no bearing on DomaCom’s current business model.

The Federal Court will hear the parties today about what orders should be made.

DomaCom chief executive Arthur Naoumidis said: “After the court hands down its orders we will study the judgments closely and make a further announcement after the effect, if any, of the decision on the DomaCom Fund.”

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