New regulations came into effect last week (August 7) adopting some of the changes to self-managed funds (SMSFs) that were recommended by the Cooper review. These regulations are aimed at improving the governance of SMSFs, particularly the way they manage and monitor their investments.
The head of technical services at SuperIQ, Kate Anderson, says there are four key changes:
- Insurance Review -consider whether the fund should hold insurance for one or all of its members.
- Investment Strategy Review – regularly check the strategy, more than annually as the current minimum.
- Value Assets at Market Values – for reporting purposes for 2012-13 year, instead of the option to value at market or historical values as in the past.
- Asset Ownership – separate from trustee or member or associates, is now enforceable, so keep assets in the fund name and no SMSF cash in personal bank accounts or assets.
Annette Sampson, The Sydney Morning Herald READ MORE