Responsibility for the super fund
A self-managed superannuation fund (SMSF) can have a maximum of 6 members. All members of an SMSF are either individual trustees or directors of a corporate trustee of the fund.
Trustees of an SMSF:
- are equally responsible for all aspects of running the fund and meeting its tax and super obligations
- must have the knowledge, time and skills to run and manage their fund.
Compliance action can be taken against your SMSF and you personally if your SMSF breaches superannuation laws. This differs from other super funds, where all of this responsibility sits with a professional licensed trustee.
Investment decisions
You and the other trustees need to develop and apply your SMSF's investment strategy and make all investment decisions. You also need to make sure your investments comply with super laws.
Most other super funds will only allow you to control the risk level of your investments, but you generally can't choose what assets your super will be invested in.
Insurance
Trustees must consider whether to purchase insurance for your members as part of your investment strategy. Premiums may be higher than in other super funds.
Most other super funds offer insurance cover to members. This usually costs less as large funds can get discounted premiums.
Regulation
We regulate SMSFs and require trustees to engage with us to manage their fund.
The Australian Prudential Regulation Authority (APRA) regulates other super funds. Generally, members of other super funds don't have to engage with APRA as they are not responsible for managing the fund.
Complaints and disputes
We do not get involved in resolving disputes among SMSF members. Disagreements can be resolved through alternative dispute resolution techniques or in court, at the members' own expense. There is no government compensation scheme.
Members of other super funds have access to the Australian Financial Complaints Authority and may be eligible for statutory compensation.
Fraudulent conduct or theft
No government financial assistance is available to SMSFs.
Members may have legal options under Corporations Law if there has been a loss due to misconduct or inappropriate advice. However, there is no guarantee that compensation will be awarded.
Be aware of who you provide your personal information to. If you are approached by a financial adviser, make sure they are registered with ASICExternal Link.
Members of other super funds may be eligible for government financial assistance in the event of fraud or theft.