Illegal SMSF early access scheme leads to $6,000 fine
A promoter has been fined $6,000 for operating a financial services business without a licence.
The promoter ran a scheme to facilitate illegal early release of clients superannuation benefits through the creation of self-managed superannuation funds (SMSFs)
Whilst each step may have appeared legitimate for tax purposes, overall it did not pass the “smell test”. Rather than only penalise the SMSF trustees, a bigger stick was used to fine the promoter.
Whilst the case does not refer to action against each client, there would be significant cost and likely remedial action for each SMSF and its trustees.