SMSF Fraud Compensation Does Exist: SPAA

SMSF Fraud Compensation Does Exist: SPAA

SMSF Fraud Compensation

A recent court decision has shown avenues for SMSF fraud compensation does exist for trustees in the event of losses arising from theft or fraud, despite popular opinion otherwise. “In the wake of the Trio/Astarra scam, there has been a misconception that SMSF trustees are swimming outside the flags when they lose their superannuation savings because of fraud or theft,” Self-Managed Super Fund Professionals’ Association of Australia (SPAA) Chief Executive Andrea Slattery said. “A recent court settlement, in which an elderly woman got back most of her life savings of $1 million she lost in the Trio/Astarra fraud, is positive proof that SMSF trustees do have legal recourse when these tragic events occur.” “It has always been SPAA’s contention that SMSF investors potentially do have options available to them should they suffer fraud or loss, and the court settlement is certainly strong evidence of this,” Slattery said. “It’s critical that SMSF trustees and their advisers understand this, because most of the headlines after the Parliamentary Joint Committee into Trio was handed down, and even some comments by those who gave evidence at the hearing, gave the impression that SMSF investors had no prospect of compensation in the event of fraud or theft.” She said SMSF trustees had to be mindful of the wording prescribing their compensation options dealing with fraud as it often only dealt with one method of action when more than one might exist.

Darin Tyson-Chan, Investor Daily
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Self-Managed Superannuation Service Providers in Australia. SuperBenefit provides a wholistic SMSF assistance, education and administration service continuum - 1. “assistance” is help of whatsoever nature where our overall SMSF experience and knowledge enables us to provide assistance/help without any legal (or “license”) limitations. 2. “education” involves providing knowledge through teaching, coaching and mentoring about all matters SMSF, including (but not limited to) investment issues such as equities and property, 3. “administration” encompasses all admin aspects of legally required SMSF trustee and member record keeping including (but not limited to) audit and ATO matters. In keeping with our key point that SuperBenefit does not provide Financial Advice, where issues arise from 1, 2, and/or 3 above Indicate a need for a legally authorized provider (such as a Financial Adviser) and the client does not have their own service provider, the client can utilize SuperBenefit’s ‘Connect Assist’ … SuperBenefit, in itself, does not provide Financial Advice, but it does provide the wherewithal for great SMSF service. WE do not provide Financial Advice or any other service that requires a legally authorized provider. However, where such advice or service is required we have our ‘Connect Assist’, a SuperBenefit resource we use to connect clients to a Licensed Advisor or other legally authorised service provider. Call us 0407 361 596, no obligation FREE Connection call to see how we can help you!
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