HQB’s Weekly SMSF News – Week 6

Importance of an investment strategy – why is the auditor asking about it?

• The superannuation laws require that you must prepare and implement an investment strategy for your SMSF.
• The investment strategy must be reviewed regularly, and consistent with the actual investments of the SMSF holds.
• There is a long list of matters that need to be included in the investment strategy, including:
  • Liquidity (ability to turn investments back to cash quickly if needed);
  • Diversification (or lack thereof);
  • Insurance considerations;
  • Risks involved in the investments;

As one of the specific parts of the superannuation law that the auditor needs to sign off on, it is important to keep the document up to date to prevent a costly breach of the laws.

– James Davis

Posted 28.09.2022

This article is compiled as a helpful guide for your private information and is subject to copyright. We suggest that you do not act solely on the basis of material contained in this article because items are of general nature only and may be liable to misinterpretation in particular circumstances. We recommend that our advice be sought before acting on any of these crucial areas.