AIST calls for tighter controls on SMSFs
The Australian Institute of Superannuation Trustees (AIST) has called for stronger regulation of advisers to self-managed super funds (SMSFs) and highlighted the need for funds to be fully regulated under the same regulations as Australian Prudential Regulation Authority (APRA) regulated funds. It has also stressed the fact that there should be no dilution of superannuation law.
In its phase three submission paper to the Cooper Review, the industry body outlined a number of responses to the review and stressed a number of structural improvements are required to optimise the retirement outcomes of working Australians. AIST also called for stronger regulation from accountants, stockbrokers, financial planners and other professionals advising on SMSFs and reiterated its call that fund administrator licensing be extended to the SMSF sector.
The association also called for the transfer of all SMSFs to APRA regulation and the synchronisation of the reporting with APRA funds. It also said the reported high costs associated with running small balance SMSFs suggested the finds be required to demonstrate they would meet a minimum establishment deposit requirement based on number of members, suggesting the following figures as a starting point: 1 member - $200,000; 2 members - $300,000; 3 members - $400,000; 4 members - $500,000.
Additional points made by the institute included the need for broader tax file access for funds and the updating of the Australian Taxation Office register of complying funds in order to ensure superannuation fraud is significantly reduced as well as an opt-out clause for default death and total and permanent disability cover in super funds.
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