Insurance lectures Superannuation 保险养老金 课件.pptVIP

Non-Arms Length Investments Transactions need not necessarily be at arm’s length, that is they may be between related or associated parties, however they have to be at a proper market value. For example if I sell some shares that are in my own name to my Self Managed super fund, it must be on a commercial basis, ie at current market values. This requirement applies to both trustees and investment managers of superannuation entities, as both make investment decisions for the entity. In-house Assets An in-house asset is a loan or an investment in an employer or an associated employer. There is a 5% limit on in-house assets based on market value. For example the BHP superannuation fund cannot hold more than 5% in BHP shares. Investment Strategy A trustee of a superannuation fund must formulate an investment strategy that has regard to the whole of the circumstances of the fund including, but not limited to: Risk and return; Diversification; Liquidity; and The ability of the fund to discharge its liabilities. An investment strategy is a written plan for making, holding and realizing fund assets consistent with the investment objectives adopted for the fund. Investment Strategy As part of the investment strategy the trustees are required to formulate document investment objectives for the fund. The objectives need to be: Specific; Measurable; Agreed in writing; and Realistic and achievable. The investment strategy should also be reviewed on a regular basis. Fund Records and Reports The trustees of a superannuation fund are required to keep the following for at least 10 years: Minutes of trustee meetings; Records of change of trustee changes; Consents to act as trustee; and All reports given to members. Accounting records must be kept for 5 years and be in English. Annual Returns Each year a complying superannuation fund must lodge an annual return with APRA or with the ATO if the fund is a self managed superannuation fund. The annual return establishes that t