New Investment Strategy

Some people might find the questions in this application complicated and will want to seek advice from an accountant or financial planner before answering some specific questions. To assist you here we have a paper copy of all the questions that you can download and read at your leisure. You can then seek advice and come back and complete your online application later.
Download your copy of our questionnaire here

Superannuation law requires that every self managed super fund (what we will now call an SMSF) must prepare and implement an investment strategy. What the law actually says is: (and we have highlighted the important bits):

Operating standard -- investment strategy

  1. For the purposes of subsections 31 (1), 32 (1) and 33 (1) of the Act, the standard stated in subregulation (2) is applicable to the operation of superannuation entities.
  2. The trustee of the entity must formulate, review regularly and give effect to an investment strategy that has regard to the whole of the circumstances of the entity including, but not limited to, the following:
    1. the risk involved in making, holding and realising, and the likely return from, the entity's investments, having regard to its objectives and expected cash flow requirements;
    2. the composition of the entity's investments as a whole, including the extent to which they are diverse or involve exposure of the entity to risks from inadequate diversification;
    3. the liquidity of the entity's investments, having regard to its expected cash flow requirements;
    4. the ability of the entity to discharge its existing and prospective liabilities;
    5. or a self managed superannuation fund--whether the trustees of the fund should hold a contract of insurance that provides insurance cover for one or more members of the fund.

As you can see, before you can develop your investment strategy you first need to determine some information with regards to things like cash flow, liquidity, liabilities of the fund and the fund's objectives.

We will first ask you some questions that will force you to think about those things. The law requires that you actually consider them so by keeping a record of answering these questions you will be able to prove that those items were considered when developing your investment strategy.

If you have been refered to our site by your accountant or financial planner they may have already given you the answers to some of the questions we will be asking.

And don’t worry, you don’t have to complete this all at once. You can save your strategy part completed and come back later to finish it. There might be some things you need to seek further advice on.

Proceed to Application