News : Compliance

Disregarded small fund asset awareness needed for ECPI

September 26, 2018

Financial advisers and their SMSF clients need to consider the new rules pertaining to disregarded small fund assets when assessing whether an actuarial certificate will be needed to claim exempt current pension income (ECPI), an industry technical expert has said.

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ATO, Compliance, Management

Trustee motivation on ATO’s radar

September 25, 2018

Krystine Lumanta

The tax office has flagged it will continue to monitor the establishment of SMSFs and will closely focus on the motivations of trustees during the registration process to ensure they are clear on their intentions with the fund.

Admin system needs to be TSB record

September 18, 2018

Darin Tyson-Chan

Financial advisers and accountants need to ensure their administrative system is the source of truth for their SMSF clients’ total super balance (TSB) records and should not rely on the ATO for this purpose, an industry technical expert has said.

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ATO, Compliance, Regulation

Extra caution needed for reserves strategies

September 18, 2018

Krystine Lumanta

The use of reserves by SMSFs must be approached by advisers with greater prudence as the strategies the ATO will tolerate are now very limited, an industry lawyer has warned.

Fund guardians key in mitigating litigation

September 13, 2018

Malavika Santhebennur

SMSF members would be wise to appoint a fund member guardian in addition to an enduring power of attorney (EPA) to safeguard their fund should they lose mental capacity.

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Administration, Compliance

New NALI rules still ambiguous

September 13, 2018

Malavika Santhebennur

Advisers require more ATO guidance on what are considered to be ‘internal arrangements’ under the proposed new non-arm’s-length income (NALI) rules as they attempt to navigate clients through the uncertainty ahead, according to a lawyer.

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Compliance, Education

Calls for pragmatic approach to FASEA

September 13, 2018

Krystine Lumanta

The Financial Planning Association of Australia (FPA) has called for enhancements to the proposed guidance on the framework for financial adviser education in order to ensure fairness and appropriateness.

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ASIC, Compliance

ASIC warns advisers on best interest duty

September 13, 2018

Malavika Santhebennur

The corporate regulator has used the upholding of a ban on a former Westpac adviser who advised clients on SMSFs as a reminder to financial advisers of the importance of complying with the best interest duty and conducting reasonable investigations to ensure their advice is in the best interests of clients.

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Compliance, Regulation

Put clients on notice with NALI

September 11, 2018

Krystine Lumanta

Advisers with SMSF clients who do not use a real estate agent may run into issues with non-arm’s-length income (NALI) due to the lack of clarification in a bill currently before Parliament and therefore must inform clients of this possibility, an industry lawyer has warned.

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Compliance, Property, Strategy

ATO to keep close tabs on property sole purpose

September 10, 2018

Malavika Santhebennur

There may be no general prohibition against SMSFs investing in property development, but given the regulatory rules, it is very difficult for SMSFs to maintain compliance, a lawyer has warned.

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