The appointment of a restructuring practitioner could trigger the disqualification of self-managed super fund (SMSF) trustees, thanks to the introduction of a new category of disqualified person in the SIS Act.
Changes were made at the beginning of 2021 to include a new debt restructuring process and simplified liquidation process for eligible small businesses through a restructuring practitioner.
Following this, the SIS Act was also amended in December 2021 to include a new category of disqualified person which could affect SMSFs with corporate trustees.
In an update from the Australian Taxation Office (ATO), it said: “This new category applies when a restructuring practitioner is appointed in an insolvency event. This will trigger the disqualification of a corporate trustee of a superannuation entity, including an SMSF, from managing a superannuation entity.
“If your SMSF has a corporate trustee, and a restructuring practitioner is appointed, the company will no longer be able to act as the corporate trustee, as it is disqualified.”
Existing funds needed to notify the ATO as soon as possible if this was the case.
If a restructuring practitioner was appointed, SMSFs needed to:
For new SMSFs, they would need to consider if the corporate trustee was eligible to act as one.
Michael Lovett, who left the investment firm just three months after launching its Vanguard Super offering, has taken up a chief executive role at an Australian asset manager.
The Central Bank of Ireland has granted the approval of Equity Trustees’ exit from its Irish operations, with the transaction expected to be complete on 30 April.
Super returns continued to climb in March, raising hopes of delivering double-digit returns by June depending on the performance of this next quarter.
The dedicated super fund for emergency services and Victorian government employees is under fire for unpaid entitlements to transport employees, which could exceed $40 million.
Add new comment