Superannuation Fund Off-Market Transfers Amendments Delay

The implementation of a ban on off-market transfers in relation to superannuation funds has apparently been delayed to July 1, 2013 instead of this year.

According to reports, the reason for this is for the protection of its investors.

Under this ruling, SMSF members may be subjected to severe penalties in accordance with the Corporations Act. The amendments to the Superannuation Industry Supervision Act have to be reviewed to correct this.

SMSF Professionals Association Australia’s technical director said that the rules were set so that any rigging and false misrepresentation to trading and securities are prevented.

But with this new problem arising as a result of a recommendation by the Cooper review, another review of the rules or amendments to the Superannuation Industry Supervision act may be in order.

The Treasury has to come up with a process where SMSF members are not going to be affected by the Corporations Act, and legislators may look beyond Copper review recommendations for the solutions. Meanwhile, others say may actually be more trouble than it is worth.

In the new superannuation law, investors can make purchases using their super fund money, with the exception of real estate property and public shares. When do they purchase shares and transfer this to their names, this is regarded as an off-market transfer, subjected to verification by the superannuation fund auditor.