Topdocs cautions on SMSF documentation
Financial advisers and others providing services to self-managed superannuation funds (SMSFs) need to better understand the documentation required around the provision of income streams, according to specialist SMSF documentation provider Topdocs.
The company's national manager, training and advice, Michael Harkin warned this week that not having the right documents could well impact a new income stream recipient by denying them payments and adversely affecting the taxable income of both the SMSF and the individual in question.
Harkin emphasised the need for the SMSF trust deed to be reviewed to ensure the trustee had the authority to start paying a pension and that the rules of the deed met superannuation regulation requirements.
As well, he said the fund member needed to formally request that the trustee pay an income stream from the SMSF, and a trustee resolution needed to be appropriately recorded in the minutes of the fund.
Harkin said this then had to be backed by a formal agreement which set out the terms of the pension; legislative restrictions and information such as the regularity of payments; and the minimum — and if applicable the maximum — pension payment amounts for the first year.
He said a product disclosure statement was also required.
Recommended for you
The director of Ascent Investment and Coaching, Michael Dunjey, has been charged with 33 criminal offences.
Adviser Ratings’ latest financial landscape report finds there is a demographic of advice practices achieving an average revenue of $5 million, with only 3 per cent of practices overall seeing a revenue decline.
The FAAA is calling for regulators to take a partnership approach with financial advisers regarding incoming legislation, rather than treating the industry as “guinea pigs”.
There have been strong numbers of returning advisers this year so far, according to Wealth Data, already surpassing the same period for 2024.
