AUSTRALIA - Senator Nick Sherry has voiced his concerns over the governance of self managed superannuation funds (SMSF).
Sherry said: "The survey results indicate that whilst the majority of the sector is well managed, a significant minority may not be."
ATO found 21% of SMSF trustees had a low or medium knowledge of their obligations and 30% were unable to explain the 'sole purpose test'.
Some 15% of trustees did not have an investment strategy.
Sherry urged those recommending SMSFs to fully disclose the time and cost burden of set up and running the scheme and called on the industry to address the education gap for trustees on this issue.
The ratio of operating expenses to total assets for funds up to AUS$50,000 was shown by ATO to be a massive 10.51% but for larger funds, up to $200,000 the ratio dropped to around 3%.
PwC, KPMG, EY and Deloitte must break up their consultancy and audit businesses into distinct firms to provide greater focus on the "most challenging and objective audits", the competition watchdog has said.
The Department for Work and Pensions (DWP) has released its first batch of guidance setting out how the guaranteed minimum pension (GMP) conversion legislation may be used to resolve unequal payments.
This week's top stories include the government spending £800,000 on a Gogglebox advert and MPs writing to The Pensions Regulator about its engagement with the Railways Pension Scheme.