CPA releases SMSF guidelines

CPA Australia has issued a set of guidelines to assist its members who are advising clients about self-managed superannuation funds (SMSF) to help ensure the advice given is appropriate.

“Accountants are a major source of advice when it comes to SMSFs, so we need to ensure CPA Australia members are aware of all the issues that should be taken into consideration. We hope these guidelines provide a useful checklist for members to use when assisting their clients,” CPA Australia Financial Planning Policy Adviser Kath Bowler said.

The guidelines will mainly alert CPA members about the factors to take into account when providing SMSF advice to clients, the type of advice members are legally able to provide clients if that are not licensed under the Financial Services Reform Act, and the legal licensing requirements for members providing SMSF advice to clients.

In particular, CPA Australia is determined to make sure the clients understand their obligations when entering into an SMSF.

Matters highlighted by the professional body include legal and tax requirements and accepting responsibility for where the contributions will be invested.

“Costs and the amount being invested are the main factors typically taken into account when advising on SMSFs. While these are certainly important, key features such as control, flexibility of investments, and succession planning should also be considered,” Bowler said.

“We hope these guidelines will be a useful tool for members and will improve the overall quality of advice given in this area,” she concluded.