In this guide
- 1. Is it comprehensive enough?
- 2. Is it up to date and do you review it regularly?
- 3. Is your investment strategy appropriately diversified?
- 4. Do you need to rebalance?
- 5. Are all investments allowed under your fund’s trust deed?
- 6. How long since you considered insurance needs of members?
- 7. Have you minuted any changes?
- 8. Is it filed appropriately?
- The bottom line
A periodic health check of your SMSF’s investment strategy is not just a useful tool for ensuring your SMSF is working well for you, it is also a requirement of the Superannuation Industry (Supervision) Act 1993 (“SIS Act”).
Section 52B of the SIS Act contains a number of ‘covenants’ (promises) that are taken to be incorporated into every SMSF’s governing rules; one of them being a promise not just to formulate and give effect to an investment strategy, but to also review it regularly.
Reviewing your SMSF’s investment strategy should therefore be a regular occurrence to maintain fund compliance.
With ATO penalties for non-compliance rising from $222 per unit to $275 on 1 January 2023, it’s now more important than ever to make sure your investment strategy is up to scratch.
Read more about ATO penalties for non-compliance.
You can download and print the checklist and tick off each task as you go.
Continue reading for explanations of each item on the list.
