Being the trustee of an SMSF can be challenging. But while many SMSF trustees turn to their accountant for assistance, they can only provide advice on some SMSF-related matters, unless the are representatives (or have their own) financial licence.
At Xperion, we hold limited financial licence to ensure that we are truly qualified to give you the best advice, and at the same time are independent from investment providers.
Statement of Advice
To be able to setup and SMSF on your behalf, or to advise you on pension commencement, we need to provide you with a statement of advice.
This is to ensure that your personal circumstances are considered and you are provided with all relevant information to make the right decisions.
The Statement of Advice may begin by detailing your current financial position, your needs and objectives, and your attitude to risk. You may also find your planner’s reasons for giving the advice, possible risks and consequences of proceeding with the advice. It may also include an outline of why your planner believes the advice is in your best interests.
When you need to use a licensed accountant
Whether you are considering starting or closing your SMSF, you should seek professional advice and obtain statement of advice (SOA). Note that only accountants like us that hold financial licence can advise you on the following:
SMSF establishment
Establish or wind up an SMSF
Advise on the appropriateness of an SMSF for your personal circumstances
Explain the suitability of different super investment options and funds
Recommend one super structure over another
Suggest consolidating or rolling over assets into a single fund
Contributions
Recommend additional super contributions
Suggest establishing a salary sacrifice arrangement
Pensions and withdrawals
Recommend starting a super pension or transition-to-retirement pension (TRIP)
Calculate the super pension amounts needed to meet your income requirements based on your account balance, life expectancy and estate plans
Organise an ad hoc lump sum withdrawal
Recommend rollovers out of an SMSF
Investment assets
Recommend purchasing property through your SMSF
Prepare a tailored investment strategy for the SMSF
Recommend specific assets to buy when establishing an SMSF, including basic deposit products and cash management accounts
Recommend establishing a Limited Recourse Borrowing Arrangement (LRBA)
Estate management
Organise a binding death benefit nomination
Recommend appropriate beneficiaries for a binding death benefit nomination.
Be careful of provider that do not provide you with statement of advice (SOA), as it is no longer legal to ensure your assets are protected.
If you would like to discuss any of the above, please contact our office.
Frequently Asked Questions
The SOA, among other financial advice disclosure obligations, aims to ensure that your clients receive good quality advice and are able to make informed decisions.
A Statement of Advice (SOA) is a document that sets out your situation and goals, and our corresponding financial advice. You will receive an SOA when we provide you with personal financial advice that takes into consideration your personal objectives, financial situation and needs. The SOA will contain:
the advice
the basis on which it was given
information about fees, commissions and associations related to the provision of this advice.
In addition to providing factual information about financial services and products (general advice), they can help with:
Taxation advice
Traditional accounting activities
Broad asset allocation advice
Referrals
Although accountants without an AFSL are permitted to provide execution-only services (like implementing an LRBA or investing assets) to an SMSF, they may require a Statement of Advice (SOA) from a licensed adviser before they will do so. This is to prove the accountant did not provide you with personal advice.
You may also find accountants who don’t hold an AFSL unwilling to comment on product recommendations in an SOA. However, they are still able to comment on the tax implications of making such an investment.