Let’s talk about some of the recent changes to the rules for S.M.S.Fs that may affect you.

According to the new rules, trustees of S.M.S.F’s must now review their investment strategy regularly (which typically means at least annually). The strategy needs to reflect the purpose and circumstances of your fund and consider the following diversification, liquidity, maximise returns for members and circumstances of members.

Also, when developing or reviewing an investment strategy, fund trustees must now also consider whether the fund should hold a contract of insurance that provides insurance cover for one or more members of the fund.

While this does not mean that an SMSF must actually provide insurance cover for its members, where insurance is required it’s likely that the level and type of insurance cover will be determined by a members own personal circumstances.

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