Important information for SMSF participants

A SMSFPR does not mean your investment will make money

A 'product' refers to an arrangement in which a number of participants individually enter into substantially the same transactions with a common entity or a group of entities.

SMSFPRs assist SMSF participants (sometimes referred to as 'investors') by providing certainty about the Superannuation Industry (Supervision) Act 1993 (SISA) and Superannuation Industry (Supervision) Regulations 1994 (SISR) consequences of participating in a particular product. However, potential SMSF participants also need to closely examine the overall financial merits of an investment (product) before making a decision on whether to invest, as well as ensure that the SMSF's investment is in accordance with its properly formulated investment strategy that has regard to the whole of the circumstances of the fund and the risks associated with the investment.

The Tax Office does not sanction or guarantee any product as an investment. Further, we give no assurance that the product is commercially viable, that charges are reasonable, appropriate or represent industry norms, or that projected returns will be achieved or are reasonably based.

The Tax Office does not examine the financial merits of products. The existence of a SMSFPR or a 'tick of approval' on a prospectus or other investor information does not mean the product is a good investment, or will even make money. Potential SMSF participants must form their own view about the commercial and financial viability of a product. This will involve consideration of important issues, such as whether the projected returns are realistic, the 'track record' of the management, the fees compared with similar products, and how the investment fits an existing portfolio. We recommend a financial (or other) adviser be consulted for such information.