POWERED BY MOMENTUM MEDIA
Next Storm could brew in SMSF
The corporate regulator has warned self-managed super funds (SMSF) could face serious dangers if investors and trustees do not do their due diligence.
Australian Securities and Investments Commission's (ASIC) deputy chair Peter Kell told a Financial Services Council (FSC) conference in Cairns SMSFs could expose investors to inappropriate borrowing strategies.
"We've seen first-hand the impact of inappropriate borrowing strategies," he said in reference to collapsed Storm Financial.
"We would want to ensure the risks in the emerging SMSF sector are administered."
But he said ASIC does not see a role for itself in guarding the sector.
"Ultimately the people who want to be involved have to take some responsibility," he said.
But he pointed out an ASIC taskforce had previously tackled some of the wider known SMSF issues such as property spruiking, and encouraging investors with a poor understanding of their operations to participate.
Recommended for you
The impact of identity theft and its threat to superannuation savings were highlighted in a case that went before the Federal Court at the end of 2023.
A recent NSW Supreme Court decision is an important reminder that while super funds may be subject to restrictive superannuation and tax laws, in essence they are still a trust and subject to equitable and common law claims, says a legal expert.
New research from the University of Adelaide has found SMSFs outperformed APRA funds by more than 4 per cent in 2021–22.
The SMSF Association has made a number of policy recommendations for the superannuation sector in its pre-budget submission to the government.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
90.28 3 y p.a(%)
2
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.44 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
