INVESTMENT RISKS OF SMSF

These disclosures are extremely important to read prior to contacting Motion Property. We operate in a regulated environment, we must adhere to the laws and regulations and also present you with the necessary information to assist you with the benefits and risks of Self-Managed Superannuation Funds (“SMSF”).

There is a lot to be gained when setting up a SMSF. But with great power comes great responsibility. Before setting up a SMSF you must do  your own research and due diligence. The laws pertaining to the establishment of an SMSF changed as of 1 July 2017. As a financial product, an SMSF come with inherent RISKS of which you must be aware as Motion Property accepts no responsibility in regards to the risks below:

The Trustees hold the power in regards to investment decisions in the SMSF and along with it the RISKS. Thus, careful consideration and due diligence must be applied when making any financial decisions. At Redwood Advisory does not recommend any particular strategy, however, it is best that you consider your age and risk profile so that you may invest in line with your retirement goals. Also consider diversification of investments which means spreading your SMSF portfolio risk over different sectors of the market for better control and stability given market changes. The investment choices you make must comply with the rules of your SMSF Trust Deed and relevant legislation. Visit the ASIC consumer website for more investment tips www.moneysmart.gov.au.

We have attached for your reference a ASIC publication on the importance of advice within an SMSF, this includes the considerations of an adviser and importantly the considerations of the Trustee – http://asic.gov.au/regulatory-resources/financial-services/giving-financial-product-advice/advice-on-self-managed-superannuation-funds-disclosure-of-risks/

Government Compensation

APRA Regulated funds usually covered in the case of fraud and theft, however, SMSF do not have as many options when it comes to these matters. Given this, no government or industry compensation is currently available for SMSFs, leaving the trustees/members of the SMSF to self-protect their own retirement interests.

Trustees/Members ultimately have control and bear the responsibility of all investment decisions and management of the SMSF. These are not prudentially regulated but rather they are subject to compliance regulation of the ATO. Refer to the ATO’s website for more details: https://www.ato.gov.au/Super/Self-managed-super-funds/In-detail/News/

Access to complaint mechanisms

Retail clients should understand that certain dispute resolution mechanisms, such as the Superannuation Complaints Tribunal (SCT), may not be available to SMSFs.

However, the types of disputes and complaints that may arise for SMSF investors may be different from those in an APRA regulated superannuation fund, and access to other complaints mechanisms may be available to SMSF investors (e.g. the Financial Ombudsman Service Limited or the Credit and Investments Ombudsman).