IFSA releases SMSF fact sheet

The Investment and Financial Services Association (IFSA) has released a fact sheet on self-managed super funds (SMSF), the 30th fact sheet to be released in its online Getting the Edge series.

Available on the IFSA website, www.ifsa.com.au, the new Weighing up the SMSF fact sheet explores many of the various SMSF issues and the ongoing requirements that trustees must meet.

IFSA chief executive Richard Gilbert said the fact sheet is intended to “help people look before they leap into something they may regret further down the track”.

Gilbert said that the role of SMSFs under choice of fund, which comes into effect today, places key responsibilities on those people who choose this option.

“SMSFs can work well for some people but the greater control available in an SMSF also means people exploring this option have to assume greater responsibilities,” he said.

“Each member of a SMSF is required to be a trustee, meaning you are unable to simply hand over the responsibilities associated with ensuring the fund complies with the many administrative and legislative requirements imposed on trustees. The role of a SMSF is the same as it is for other super funds in that they collect and invest contributions in order to provide funds for members’ retirement,” Gilbert said.

“But there are also some key differences between the two that need to be carefully considered by people assessing SMSFs, which we have set out in our new newsletter.”