No reason for APRA to regulate SMSFs

smsf-sector/self-managed-superannuation-funds/ATO/australian-prudential-regulation-authority/self-managed-super-fund/APRA/australian-taxation-office/SMSFs/SPAA/chief-executive/

20 September 2012
| By Staff |
image
image
expand image

Self-managed superannuation funds (SMSFs) should not be propelled under the jurisdiction of the Australian Prudential Regulation Authority (APRA) and should remain within the remit of the Australian Taxation Office (ATO), according to the Self-Managed Super Fund Professionals' Association (SPAA).

Reacting to claims by officials within the industry funds sector that SMSFs should be subject to the same oversight as APRA-regulated funds, SPAA chief executive Andrea Slattery said the ATO represented the right regulatory body to oversee the SMSF sector.

"The claim is that the SMSF sector is under-regulated; nothing could be further from the truth," she said.

Slattery pointed out that the ATO had always regulated the taxation of SMSFs and APRA-regulated funds, and had regulated the administration and operation of SMSFs since 1999.

She said that under the Labor government, the ATO had been handed prudential powers by APRA to regulate the auditors, actuaries and trustees of SMSFs, and that the ATO's powers included regulating fraud and theft - something which APRA could not do with respect to the Trio collapse.

"The fact remains that APRA does not have the resources to oversee nearly 500,000 SMSFs, with its audit program simply not structured to handle small funds," Slattery said.

"By contrast, the ATO has been able to build the resources and the expertise, which is why SMSFs were transferred to the ATO in 1999."

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 3 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 3 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 4 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 2 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND