The SMSF Professionals’ Association of Australia (SPAA) has given the green light for the ATO to continue to regulate the SMSF sector, in their submission to the Financial System Inquiry (FSI).
Jordan George, SPAA Senior Manager, Technical and Policy, said prudential regulation (by APRA) of SMSFs would be “unsuitable for the nature of SMSFs where trustees are responsible for managing their retirement savings.”
“Prudential regulation is appropriate where money is being managed on behalf of another person that has little ability to influence the trustee responsible for managing their retirement savings,” he said.
“The SPAA submission strongly supports the ATO remaining as the regulator of SMSFs.”
These statements follow the concerns of financial bodies who claim the ATO does not do enough to ensure SMSF trustees comply with superannuation and tax laws.
George also said SPAA is happy to see Treasury, the government’s leading economic department, is also on side with current regulatory approaches.
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