Finance wise has completed many RG146 training courses where the emphasis is on the tasks that accountants (and auditors) need to do when licensed or authorised after the accounting exemption expires.\u00a0 It is obvious that the technical knowledge is excellent but without an automated solution it is inevitable that accountants will often fall short of ASIC\u2019s requirements.<\/p>\n
There was an article located in the SMSFAdviser magazine on Friday, 22 January 2016 written by Miranda Brownlee which\u00a0cautions SMSF professionals to be \u201con guard\u201d for increased incidents of illegal early access among trustees, since recent market volatility may see a repeat of the types of behaviour seen during the GFC.<\/p>\n
The managing principal of Argyle Lawyers and SMSF Adviser<\/em> Peter Bobbin, indicated that the GFC caused many people to suffer personal lifestyle cash flow problems, with some trustees unable to resist illegally accessing their SMSF cash, particularly given the ease of accessibility.<\/p>\n \u201cWhat the GFC did for some people is it created disaster \u2013\u00a0financial disaster \u2013\u00a0and in panic, people just used cash [from their SMSF],\u201d said Mr Bobbin.<\/p>\n He warned that with the recent stock market routing, this may occur again.<\/p>\n \u201cOne of the things that the GFC has taught us to now expect, although one hopes it is on a much smaller scale, is that we may have clients who are illegally accessing their super, so professionals need to be on guard for that.\u201d<\/p>\n A prime example of where this can happen is where an SMSF trustee has a negatively geared portfolio and there are calls on the gearing part of their investment.\u00a0\u00a0 The trustee then scrambles for cash.<\/p>\n \u201cIn my professional services, I\u2019ve certainly come across people, SMSFs, that have borrowed to acquire, and the underlying asset has gone south in value,\u201d said Mr Bobbin.<\/p>\n \u201cWe may [also] get a variety of businesses that have, and possibly may continue to fail, as part of the stock market routing, as just a natural follow-on.\u201d<\/p>\n Mr Bobbin also predicts that the routing of the stock market will see poor returns for either the 31 December 2015 statements or 30 June 2016 financial statements of APRA-regulated funds, which will subsequently see a spike in the number of SMSFs.\u00a0 He indicated that it is lucky for the APRA-regulated funds that the stock market routing did not happen prior to 1 January 2016. He noted that;<\/p>\n \u201cThe Australian stock market has dropped seven per cent, and international markets have also taken a dive. That can wipe out the whole of any return for the whole six-month period.\u201d<\/p>\n