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 strategic partnership with Oaktree Capital and AZ NGA is likely to pave the way for overseas players looking to enter the Australian financial advice market, according to experts.
ASIC has cancelled a Sydney AFSL for failing to pay a $64,000 AFCA determination related to inappropriate advice, which then had to be paid by the CSLR.
Increasing revenue per client is a strategic priority for over half of financial advice businesses, a new report has found, with documented processes being a key way to achieving this.
The education provider has encouraged all financial advisers to avoid a “last-minute scramble” in meeting education requirements prior to the 31 December 2025 deadline.
