SuperStream faster if started by APRA fund

SuperStream APRA

The quickest way to roll over funds from an APRA-regulated fund using SuperStream is to ask that fund to start the process.

The fastest way to make a SuperStream rollover into an SMSF from an Australian Prudential Regulation Authority (APRA)-regulated fund is to ask that fund to initiate the process, according to an SMSF technical expert.

Heffron head of SMSF technical and education services Lyn Formica said a key consideration with using SuperStream was the best way for an SMSF practitioner to help clients request a rollover into their SMSF.

“It could be going onto their myGov account and triggering the rollover that way, going directly to the APRA-regulated fund and asking for the rollover or requesting the administrator of the receiving SMSF to trigger the rollover from the APRA-regulated fund,” Formica said during the Heffron Super Intensive Day 2022 in Sydney today.

“From my experience, number two [going directly to the APRA-regulated fund] is usually the quickest way to get that rollover happening and completed.

“Have the member go to the APRA-regulated fund they are a member of and ask for their benefits to be rolled over because all of those funds have slightly different requirements.

“The critical aspect at this point is not about SuperStream, but about the APRA-regulated fund’s know your client (KYC) requirements. Those rules haven’t disappeared, even though we have SuperStream.

“That means the APRA-regulated fund is going to need to identify that member, who also needs to supply a copy of the SMSF bank statement to prove that this is actually an SMSF bank account.

“Until those two things happen, the APRA-regulated fund is not caught by the SuperStream rules but by the KYC requirements.”

She said APRA-regulated funds requested bank statements as the SMSF verification service (SVS) was insufficient for their needs.

“An SVS can be used to double check the bank account is the one the ATO has registered, but that’s not enough for APRA-regulated funds as it does not prove that it’s actually an SMSF bank account,” she said.

“That is why the APRA-regulated funds are asking for a copy of a bank statement for the SMSF to prove that this is in fact an SMSF bank account.

“The SVS only proves that was the bank account the administrator or trustee told the ATO was the bank account for the fund.”

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