Tuesday, August 16, 2022

(running) and continuing confusion** with fees paid via an SMSF

One issue that arises relatively frequently is whether certain kinds of expenses can be paid by an SMSF.

Previous posts have touched on this issue.

Having recently reviewed one adviser's material on them joining a new licensee group, it was interesting to see that part of the confusion with the rules in this area, particularly for financial advisers and risk advisers, undoubtedly is because of the relatively vague standards that most licensees seem to impose.

In this particular situation, the licensee rules provided that advisers could charge an SMSF for all advice that was either product related or strategically relevant to that particular SMSF.

In turn, the rules stated that charging the SMSF for any other advice that is not so related will potentially breach the sole purpose test and was therefore prohibited.

Unfortunately, the vagueness of the rules under this type of approach can make it difficult for advisers and clients alike to make decisions in relation to areas such as binding death benefit nominations and wider estate planning documentation, and until there is clearer guidance from, for example, the Tax Office, there is likely to be continuing uncertainty.

As usual, please contact me if you would like access to any of the content mentioned in this post.

** for the trainspotters, the title today is riffed from the Radiohead song ‘Anyone can play guitar’. View hear (sic):