A new self managed super
administration solution
The choice is yours
Introducing YourChoice Self Managed Super
That’s YourChoice
Managing your own superannuation can be rewarding, both financially
and personally.
The tax benefits of superannuation, combined with the ability to feel in control of your investments, make self managed super funds a valuable investment tool.
But they also come with a few burdens – administrative obligations, rigorous compliance monitoring and increasingly strict reporting requirements can often make them very time-consuming, even for the most diligent investor.
How YourChoice can help
Fast, accurate and reliable administration –
by Australia’s largest fund manager
Colonial First State administers over $130 billion globally for
680,000 investors.
Administering clients’ investments efficiently on this scale requires proven processes, capable staff and technology systems that can cope with growth and change. Colonial First State has the commitment and financial strength to continue to invest in technology, ensuring future administrative effectiveness and efficiency.
At Colonial First State we combine this market-leading administration with great service. We employ people who are experienced, capable and passionate about delivering great service.
YourChoice does not impose any investment restrictions beyond what is
allowable under the Superannuation Industry (Supervision) Act & regulations.
Additionally there is no requirement to hold Colonial First State investments.
Want the freedom to manage your own
superannuation – knowing that the administration
and compliance is under control?
The benefit for you is worry-free control of your self managed fund.
All your fund’s administrative obligations are handled by our
comprehensive service:
Ongoing
W Maintenance of the fund, trustee and
member records
W Ensuring the fund’s reporting obligations to the
ATO are fulfilled
W Calculating the fund’s Pay-As-You-Go (PAYG),
Instalment Activity Statement (IAS) or Business Activity Statement (BAS) obligation and lodging these with the ATO
W Obtaining regular valuations of all assets held
by the fund to ensure they comply with legislative requirements
Monthly
W Reconciliation of all bank and non-bank related
transactions, ensuring there is appropriate supporting documentation
W Carrying out a monthly compliance review to
ensure your fund remains compliant
Quarterly
We will provide you with an all-inclusive quarterly report on the fund’s investment and compliance activities. This includes:
W Compliance report– A summary of
outstanding, future and past activities.
W Investment strategy report– A detailed report
showing current assets by allocation and current investment strategy.
W Member details report– A snapshot of each
member’s accumulation and/or pension accounts.
W Summary report– Outlines the current value of
your fund’s investments against the original cost of those investments
W Movement report– A detailed report showing
a breakdown of the purchases and sales made during the quarter
W Disposals report– Outlines your fund’s
profit/loss position on investments sold during the quarter
W Income summary– A breakdown of all income
received by your fund during the quarter
Yearly
YourChoice provides you with an annual compliance booklet which contains:
W Financial statements detailing the fund’s position
and operations
W Trustee and Member declarations W Tax return
We manage your fund’s annual audit process to ensure the fund’s obligations are met by the ATO’s due date. Your assigned account manager will:
W Conduct a final annual fund review W Prepare and compile working papers to be
forwarded to the fund’s nominated auditor Importantly, while we can arrange for your fund’s audit as part of the YourChoice service, you can choose for the audit to remain with your accountant.
Your compliance obligations under control
Managing and maintaining compliance requirements is an essential part of owning a Self Managed Super Fund. If a fund loses its status as a complying fund, it will no longer receive concessional tax treatment, and the consequences can be more far-reaching than that.
Our highly experienced team of industry specialists monitor and report to you on compliance of your fund, keeping it up-to-date with current legislation and new developments in superannuation law.
View all documentation online and
access your transaction history.
Our state-of-the-art imaging technology allows you to keep track of our administration of your fund – we handle all documentation and correspondence, you can view it all in our unique online document library. This is like a filing cabinet for your fund’s documents. The difference is that you can access it online anywhere, at any time.If you’re already an investor with us and have access to FirstNet, you can view all this using your existing Online Investor Number (OIN). It’s that simple.
Comprehensive Trust Deed Service
and fund establishment
If you’re starting up a new fund, YourChoice will:
W Prepare and provide a trust deed W Register your fund details with the ATO
(establish ABN/TFN)
W Arrange any rollovers W Draft fund minutes W Provide a welcome kit
If you’re transferring an existing fundto YourChoice, we will:
W Prepare and provide a deed of variation
W Change your Fund registration details with the ATO W Arrange any rollovers
W Provide a welcome kit
The YourChoice trust deed caters for all forms of allowable pensions:
W Allocated pensions W Term Allocated pensions
YourChoice self managed super – service and
expertise you can rely on, exceptional value
for money
YourChoice offers you a comprehensive self managed super
administration solution, at a very competitive rate.
Fee type Description Amount (incl GST)
Establishment New Trust Deed $660
Transfer existing Trust Deed $990
Administration Minimum fee $2,200 Incl. GST
Fee (%) Fee (%) Fund balance (ex GST) (Incl GST)
First $200,000 1.00 1.10
Next $150,000 +0.50 +0.55
Next $500,000 +0.05 +0.055
Over $850,000 +0.03 +0.033
Property Property holdings will be excluded from the asset $495 based fees and a fixed cost will be charged2
A 25% discount of the administration fee
will be applied in proportion to the
investments your fund holds in Colonial First
State Investment products.
11This includes FirstChoice Wholesale Investments, FirstChoice Investments, Colonial First State Managed Investment Funds, Colonial First State
Cash Management Trust, Colonial First State Premier CMT, Colonial First State Wholesale Hedge Funds and Colonial First State Diversified Strategies Fund. Investments in Colonial First State funds held through third party wraps or master trusts are excluded.
Want to find out more?
To find out more about Colonial First State YourChoice Self Managed Super, call us on
1300 360 645, visit our website at colonialfirststate.com.au or talk to your financial adviser.
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Service Information and
Administration Agreement
Issue No 2
Dated 1 July 2007
Issued by: Colonial First State Investments Limited ABN 98 002 348 352 AFS Licence 232468
This Service Information and Administration Agreement (referred to as the ‘document’ or ‘disclosure document’) provides information about the YourChoiceSelf Managed Super service that Colonial First State Investments Limited (‘Colonial First State’) can provide to the trustee/members of a self managed superannuation fund (referred to in this document as a ‘fund’) to assist in the administration and (where necessary) the establishment of a fund and the terms and conditions which will govern our relationship. This document also includes a Financial Services Guide (FSG).
The name and contact details of Colonial First State are: Colonial First State Investments Limited
Level 29, 52 Martin Place Sydney NSW 2000 Telephone: 1300 720 441 Facsimile: 1300 720 794
Email: [email protected]
A trustee of a self managed superannuation fund is responsible for ensuring that it satisfies all of its obligations, including any disclosure obligations in relation to the fund. This document will assist trustees using the YourChoiceSelf Managed Super service in satisfying their disclosure obligations. However, there will be additional information that a trustee will need to disclose to each member of the fund or the trustee will need to ensure that each member of the fund has access to that information. Colonial First State does not act in the capacity of trustee.
Colonial First State – YourChoice Self Managed Super (referred to in the document as ‘YourChoice’) is a service offered by Colonial First State Investments Limited ABN 98 002 348 352 AFS Licence 232468 to assist in the administration and (where necessary) the establishment of a fund. Colonial First State or its licensed related entities to which it has delegated administration functions in relation to YourChoice are referred to in this document as ‘Colonial First State’, ‘we’, ‘our’ or ‘us’. Colonial First State is a subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124. A reference to ‘trustee’, ‘you’ or ‘your’ in this document means you as trustee of a fund.
Colonial First State may change any of the terms and conditions of the service which are set out in this document. If that occurs, you will be provided with notification of the change which, if it is materially adverse, will be at least 30 days prior to the change.
The issue of this document is authorised solely by Colonial First State Investments Limited. Apart from Colonial First State, neither the Commonwealth Bank of Australia nor any of its subsidiaries are responsible for any statement or information contained in this document.
If you are printing an electronic copy of this document, you must print all pages including the application forms. If you make this document available to another person, you must give them the entire electronic file or printout, including the application forms. A paper copy of this document (and any supplementary documents) can also be obtained free of charge on request by calling Colonial First State on 1300 720 441 or by contacting your accountant or financial adviser.
YourChoice is available only to persons receiving this document within Australia. The information contained in this document is general information only and does not take into account your individual objectives, financial situation or needs. You should read this document carefully and assess whether the information is appropriate for you and consider seeking financial advice before making a decision.
All monetary amounts referred to in this document are, unless specifically identified to the contrary, references to Australian dollars.
Page
Introduction
2
This section outlines some important information about YourChoiceSelf Managed Super, including the benefits and a summary of the service. General information about self managed superannuation funds and their regulatory requirements is also explained.
About YourChoice Self Managed Super
6
This section gives details about YourChoice, including your obligations as the trustee, and the services
YourChoicewill provide.
Fees and other costs
10
Descriptions of the significant fees and important additional information about the fees and costs associated withYourChoice.
YourChoice account management
14
Provides information about how to manage your fund using YourChoice, as well as information on how you can access information about your fund.
About superannuation and pensions
17
Additional details about the nature of the superannuation and pensions environment, including who can contribute, types of contributions you can make, binding death nominations and superannuation tax and regulatory information.
Other information you need to know
26
Additional information on the administration service agreement, regulatory requirements and the terms and conditions when you use YourChoice.
Application checklist and forms
33
Includes the forms required by you to establish an account with YourChoiceSelf Managed Super, as well as some information to assist you in the completion of each form.
Financial Services Guide
45
The financial services we can offer you are explained. Also, details are included of how we (and other relevant persons) are remunerated for these services.
Understanding risk
5
This section details the general risks associated with self managed superannuation funds.
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FSG
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2 Colonial First StateYourChoice Self Managed Super
Welcome to YourChoice Self Managed Super
Adviser/ Accountant
See Sections 1, 2, 6 and 7 for information about self managed super funds Contributions Financial advice Benefits
Trustees/Members
Investment Strategy
See Sections 1, 3, 4, 5, 7 and 8 for information about YourChoice Self Managed Super Administration Compliance Reporting Record keeping Annual audit CorrespondenceSelf Managed Super Fund
Investments/Cash account
Online Document Library/Reporting
Continually managing and maintaining compliance requirements in an essential part of owning a self managed super fund. If a fund loses its status as a complying fund, it will no longer receive concessional tax treatment and the consequences can be more far-reaching than that. Our highly experienced team of industry specialists ensure the ongoing compliance of your fund, reviewing the transactions, submitting returns to the ATO and keeping it up to date with legislation.
Continually managing and maintaining compliance requirements in an essential part of owning a self managed super fund. If a fund loses its status as a complying fund, it will no longer receive concessional tax treatment and the consequences can be more far-reaching than that. Our highly experienced team of industry specialists ensure the ongoing compliance of your fund, reviewing the transactions, submitting returns to the ATO and keeping it up to date with legislation.
Continually managing and maintaining compliance requirements in an essential part of owning a self managed super fund. If a fund loses its status as a complying fund, it will no longer receive concessional tax treatment and the consequences can be more far-reaching than that. Our highly experienced team of industry specialists ensure the ongoing compliance of your fund, reviewing the transactions, submitting returns to the ATO and keeping it up to date with legislation.
What is
YourChoice
?
YourChoice
is an administration service for self managed superannuation funds.
We take care of the administration and provide compliance support, saving you
time and enabling you to focus on controlling your fund’s investments.
Why choose
YourChoice
?
Your compliance obligations
under control
Continually managing and maintaining compliance requirements is an essential part of the trusteeship of a self managed super fund. If a fund loses its status as a complying fund, it will no longer receive concessional tax treatment and further consequences may apply.
Our highly experienced team of industry specialists assists you with the ongoing compliance of your fund, reviewing the transactions, submitting returns to the Australian Taxation Office (ATO) and keeping your fund up-to-date with legislation.
Online access to your
fund information
You can view all your transactions and images of your documents online through FirstNet Investor. We handle all documentation and correspondence and you can view it in our unique Online Document Library. It is like a filing cabinet for all your fund’s documents that you can access online anywhere, any time. The benefit for you is that you can easily monitor your fund. These tools will also be made available to your adviser and accountant.
Value for money
YourChoiceoffers you a comprehensive self managed super administration service at a competitive price. There is a flat dollar fee for real property investments and a discount of up to 25% on the Administration Fee for investments held in Colonial First State investment products.
YourChoice at a glance
1
This page summarises some important information about
YourChoice
Self Managed Super.
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Minimum fund size $200,000 (We may accept amounts below this. Please read the ‘Minimum fund value’ section on page 12.)
Minimum cash holding You must keep sufficient funds in your nominated Australian financial institution account (‘cash account’) to meet fees and costs.
Allowable investments A wide range of investments can be included in your fund, such as securities (listed and unlisted); real property (residential and business); cash and others, such as collectibles (artwork/coins/antiques). Refer to page 26 for further details.
Features WAdministration, record keeping and reporting services
WTrust Deed services WAnnual audits1
WActuarial services1
WOnline access to your fund’s information through the Online Document Library
Establishment Fee2 New funds (incl. new Trust Deed) $660 Transfer (incl. Trust Deed amendment(s)) $990
Administration Fee2 Value of your fund’s assets Fee (pa)
(excluding real property)
First $200,000 1.10% Next $150,000 0.55% Next $500,000 0.055% Over $850,000 0.033% A minimum fee of $2,200 pa applies.
Colonial First State discount A discount rate of up to 25% of the Administration Fee will apply in proportion to the value of investments held directly in Colonial First State investment products, subject to meeting the minimum fee.
Property Fee2 $495 pa (Real property is excluded from the valuation of your fund’s assets for calculating the Administration Fee. A flat dollar fee applies when real property is held.)
Additional fees Certain additional fees such as the Audit Fee, Actuarial Service Fee, Additional Service Fee and Trust Deed Amendment Fee may be charged on a per item basis.
Contact details
Internet: colonialfirststate.com.au
Phone: 1300 720 441
Fax: 1300 720 794
Mail: Colonial First State, GPO Box 3254, Sydney NSW 2001
Email: [email protected]
Further information is outlined in the section ‘Fees and other costs’ on pages 10 to 13.
Further information is outlined in the section ‘Fees and other costs’ on pages 10 to 13. There may be other fees or costs you incur as a result of operating the fund. These fees only relate to the YourChoice service.
1 Accessing these features through YourChoice is optional and they are provided on a fee for service basis. Refer to page 10 for further details on fees and costs. 2 These fees include GST. We can change the fees at any time at our discretion. If the change is an increase in fees, we will give you 30 days prior written notice.
Colonial First StateYourChoice Self Managed Super
About self managed superannuation
What is a self managed superannuation fund?
Under Australian superannuation law, you have the ability to choose to contribute your personal superannuation contributions (and in some cases, direct your employer to pay employer contributions) to a superannuation fund of your choice. Self managed superannuation funds invest contributions and provide a benefit to members on retirement. The difference between a self managed superannuation fund and other types of superannuation funds is that the members of self managed superannuation funds are also the trustees, or directors of a corporate trustee. This means they control the investments of the fund, the payment of their benefits and are ultimately responsible for the ongoing compliance of the fund. Generally, a superannuation fund is a self managed superannuation fund if:W it has four or less members
W each member of the fund is a trustee or a director of the
corporate trustee
W each trustee or director of a corporate trustee is a member
of the fund
W no member of the fund is an employee of another member
of the fund, unless they are related
W no trustee of the fund receives any remuneration for their
services as trustee, and
W the fund has a trust deed that meets the requirements of
the Superannuation Industry (Supervision) Act 1993 (SIS Act). Different rules apply to single member funds and in some circumstances certain other people can act as a trustee (or a director of a corporate trustee). You should seek financial advice to assist you in determining how to structure your superannuation fund.
Who can be a trustee?
Generally, anyone who is over the age of 18 (and who is not under a legal disability) can be a trustee of a self managed superannuation fund. Certain individuals and companies cannot act as or become a trustee of a superannuation fund. These people or companies are defined as ‘disqualified’ under the SIS Act. An individual or company is defined as disqualified if they are:
An individual who
W has ever been convicted of an offence involving dishonesty W has ever been subjected to a civil penalty order under the
SIS Act
W is an undischarged bankrupt, or
W has ever been disqualified by a regulator.
A company which
W has a responsible officer who is a disqualified individual W has had a receiver or provisional liquidator appointed, or W has had an action commenced to wind up the company.
What is the role of a trustee of a self
managed superannuation fund?
As a trustee of a self managed superannuation fund, you are ultimately responsible for the management and overall running of the fund. It is important that as a trustee you understand the responsibilities and obligations of being a trustee and act in accordance with:
W the Trust Deed
W the SIS Act and Superannuation Industry (Supervision)
Regulations 1994 (SIS Regulations)
W for corporate trustees, the Corporations Act 2001 W general rules such as those under tax and trust law, and W other legal obligations.
Further information on trustee obligations is outlined on pages 8 to 9. There are penalties that may be imposed on trustees who fail to meet their obligations.
What do you need to consider about
the investments in a self managed
superannuation fund?
Subject to certain restrictions and the ongoing compliance with the investment strategy, self managed superannuation funds allow for flexibility in the investments which can be held.
Investment strategy
Trustees of a self managed superannuation fund are required to prepare and implement an investment strategy for their fund, and to regularly review this strategy. Refer to page 9 for further information about developing the fund’s investment strategy and page 26 for investments that can be administered by
YourChoice.
Sole purpose test
The sole purpose test aims to ensure that self managed
superannuation funds are maintained for the purpose of providing benefits to members upon their retirement. Refer to page 27 for further information.
Breaches
As the trustee of a self managed superannuation fund, you must be aware that consequences can arise if certain trustee obligations or responsibilities are not met. The more fundamental obligations and requirements have been outlined in this
document (refer to pages 27 to 28) and full details can be found through the sources mentioned below.
As a good general guide to self managed superannuation, we advise that you read the ATO publication ‘Role and responsibilities of trustees’ that has been published for self managed superannuation funds.
Whether establishing a new, or continuing an existing, self managed super fund,
it is important you understand the fundamentals of self managed superannuation.
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Understanding risk
As a trustee of a self managed superannuation fund, you should understand both
trustee risk and investment risk.
What is trustee risk?
As a trustee of a self managed superannuation fund, you are responsible for all aspects of the management of the fund.
YourChoiceassists you in the management of risks, but as trustee, it is important that you are aware of them.
What are the significant trustee risks?
Compliance risk
You must ensure that your self managed superannuation fund complies with superannuation, taxation and other laws. If a trustee does breach such laws, certain penalties may be incurred, such as:
W freezing of the assets of a fund
W suspension, removal or disqualification of a trustee W imposition of a higher tax rate, and/or
W the seeking of civil and/or criminal penalties.
Administrative risk
As a trustee of a self managed superannuation fund, you are responsible for ensuring that the administration of your fund is handled in an appropriate way, taking into account all the necessary legislative and compliance concerns. You should also understand the workload involved in administering a self managed superannuation fund compared with investing in an independently managed superannuation fund.
While YourChoicewill assist in the administration of your fund, it is important that you understand the risk involved with your fund’s administrative obligations.
Legislative risk
There is a risk that your self managed superannuation fund may be affected by changes in superannuation, taxation and other legislation.
What is investment risk?
Before you consider your investment strategy, it is important that you understand the risks that can affect your investment. All investments are subject to risk. This means that you can lose money on your investments or that they may not meet your objectives.
What are the significant investment risks?
Market risk
Investment returns are influenced by the performance of the market as a whole. This means that your investments can be affected by things like interest rates, investor sentiment and global events, depending on which markets or asset classes you invest in.
Security specific risk
Within each asset class, individual securities like shares or bonds can be affected by risks that are specific to that security. For example, the value of a company’s shares can be influenced by changes in company management, its business environment or profitability. These can also impact on the company’s ability to repay its debt.
In what ways can you manage investment risk?
An important method to help you reduce investment risk is by spreading your fund’s money across different investments.
Within each asset class– Investing in a range of securities within an asset class means that returns will generally be less dependent on the performance of any single security. This may reduce the overall security specific risk across your fund’s portfolio.
Across asset classes– Investing in a range of asset classes means the impact of ups and downs in any single asset class or market can be reduced. That is, you can spread your exposure to different markets.
If your fund does not have sufficient money to adequately spread its investments, you could spread your investment through a managed or pooled investment.
Across investment styles– When investing through investment managers, it is important to note that different managers adopt different styles like ‘value’ or ‘growth’, and these styles can perform differently at different times. A portfolio with a mix of investment managers can help you smooth out any performance variations more effectively. That is, manager risk may be reduced. Your adviser can help you understand investment risk, and design an investment strategy for your fund that is right for its members.
Are there any other risks you
should be aware of?
When investing, there is the possibility that your fund members’ investment goals will not be met. This can happen because of the risks discussed previously. It can also happen if your fund’s investment strategy is not aligned to the members’ investment objectives.
6 Colonial First StateYourChoice Self Managed Super
YourChoice
offers a comprehensive administration service, which assists you,
as the trustee of your self managed super fund, by providing administrative,
compliance, reporting and record keeping services.
What
YourChoice
will do
Applying for a YourChoice account
When we receive your application form for YourChoiceSelf Managed Super, there are a number of services and documents that we will provide for you. This documentation will depend on whether you are establishing a new fund or have an existing fund. The initial ‘Welcome Kit’ we will send to you will include:
In order for us to provide you with any further services, you must complete the relevant documents in the ‘Welcome Kit’ and return them to us.
New funds Existing funds
New Trust Deed Deed of Variation
Member and trustee minutes and forms Member and trustee minutes and forms Details to obtain online access to FirstNet Details to obtain online access to FirstNet FirstNet user guide FirstNet user guide
ATO guide for self managed superannuation fund trustees ATO guide for self managed superannuation fund trustees
Administration
Record keeping
Reporting
Compliance
Ongoing
W Maintenance of fund, trustee and member records. W The recording, reconciliation and reporting to the ATO
of benefit and pension payments where required.
W We will support you in meeting the ASIC1requirements for corporate trustees by assisting in the preparation and lodgement of company returns and ASIC forms. Please refer to page 14 for more information about making changes to a corporate trustee.
W Calculation of PAYG, IAS and BAS1obligations and lodgement of regulatory returns with the ATO.
W Assistance with the fund’s initial and annual pension
entitlement calculations.
W Assistance in obtaining the fund members’ actuarial
certificates for pensions.
W Obtaining regular valuations of all assets held by
the fund in line with legislative requirements. From time to time we will need to obtain information about your fund’s activities, such as investment transactions, contributions and benefit payments. If you have a financial adviser registered on your account, we will request information from them in the first instance. If we are unable to obtain information from your adviser, we may contact you directly.
Monthly
W Reconciliation of all bank and investment transactions. W Ensuring supporting documentation is completed for
transactions which occurred during the month.
W Monthly compliance review and notice of breaches.
Quarterly
W YourChoicewill provide trustee(s) and members with
reports on the fund’s investment and compliance activities.
Yearly
W Providing annual accounting records which can be readily
used for the annual audit.
W If you request, we will organise an auditor to undertake the
fund’s annual audit (refer to page 7).
W Providing a compliance booklet and other annual reports,
including member statements (refer to page 7 ‘Reporting’).
W Preparing and managing the fund’s tax return lodgement. W Organising an actuary to provide an annual actuarial
certificate.
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2 The standard auditor as at the date of this document is Ure Lynam & Co Chartered Accountants. If this arrangement changes in the future, we will notify you prior to the undertaking of your fund’s annual audit.
Administration
Record keeping
Reporting
Compliance
In addition to the services outlined on the previous
page,
YourChoice
will also provide the fund’s
trustees and members with comprehensive reports
on your fund’s investment and compliance activities.
Reports can be accessed through the Online Document Library through FirstNet. In addition, we will send you the financial statements and annual compliance booklet. Copies will also be made available to your adviser through the Online Document Library on FirstNet.
Report name Details
Monthly
Compliance review Notice of breaches (if applicable).
Quarterly
Compliance report Outstanding, future and past activities. Investment strategy Current assets by asset class allocation report compared against current investment strategy. Member details report Snapshot of each member’s accumulation
and/or pension accounts.
Summary report Outlines the current value of the fund’s investments against the original cost of those investments.
Movement report A detailed report showing a breakdown of the purchases and sales transacted during the quarter.
Unrealised gain/(loss) A list of the fund’s investments and the report unrealised gains or losses for each. Disposals report Outlines the fund’s gain/(loss) position on
investments sold during the quarter. Income report A breakdown of all income received by the
fund during the quarter.
Annually
Financial statements Details your fund’s position at the reporting date (30 June) and fund operations for the year to date.
Annual compliance This report will include: booklet Wtrustee(s) declarations
Waudit report
Wannual member statement
Wmember contribution statement Wtax returns
Wsupporting tax return schedules
(as required)
Winvestment reports.
PAYG Payment Summaries
Record keeping
Reporting
Compliance
YourChoice
will assist in keeping your fund
compliant by providing you with notification of
the major tasks that you are required to undertake.
Additionally, reports highlighting breaches of self managed superannuation fund rules relating to contributions, benefit payments or the investments of the fund of which we become aware will be issued.
Annual audit
The legislation that governs self managed superannuation requires that your fund’s accounts, statements and compliance information be audited each year by an approved auditor. The approved auditor, therefore, plays a crucial role in self managed superannuation fund compliance.
YourChoice’s role in the audit process will consist of a final annual fund review, plus preparation and compilation of audit papers. These papers are made available to your nominated auditor. Alternatively, YourChoicecan arrange for a standard audit through our outsourced provider.2
Actuarial services
Actuarial calculations are required for some pension types. Funds will be able to access YourChoiceactuarial services or use their own actuary.
For funds using the YourChoiceactuarial service, the
administration team will be responsible for obtaining the annual actuarial certification as required. The use of your own actuary will be subject to them agreeing to terms and conditions stipulated by Colonial First State.
Administration
Record keeping
Reporting
Compliance
Under current legislation, certain records relating
to your self managed superannuation fund must
be kept for a minimum of five years and other
records for a minimum of 10 years.
YourChoicewill maintain these records on your behalf while your fund is administered by us.
YourChoice is the mailbox for your fund
As part of the YourChoiceservice, we act as the mailbox for your fund’s ATO and certain investment correspondence. When you make investments you supply the investment manager, CHESS sponsor or share registry with our mailing address:[Your Trustee name(s)] or [Your Corporate Trustee] <Superannuation Fund Name>
c/- YourChoice Self Managed Super GPO Box 3254
Sydney NSW 2001
When we receive fund correspondence which includes details about your holdings, we scan the documents and provide the electronic image to you, your financial adviser and accountant through the Online Document Library, available through FirstNet, Colonial First State’s secure website.
YourChoicemay receive correspondence occasionally which will require action and response from you. We will forward a copy of the following documentation to you (or to your financial adviser):
W Corporate actions.
W Add/Change share registration details forms. W Unpaid invoices.
By doing this we relieve you of the burden of paperwork and the need for you to forward these documents to us. Additional correspondence, such as company voting forms, will be made available through the Online Document Library. General correspondence not relating to your holding (such as annual reports) will not be made available through the Online Document Library.
We will not keep original documents once they have been scanned. Exceptions to this will be where original documents are executable or require lodgement with an external body.
What you do
There are certain obligations and responsibilities that must be undertaken by a trustee of a self managed superannuation fund. While Colonial First State through YourChoicecan assist and provide tools to help you with this important aspect of managing your fund, it is essential that you understand what is required of you as a trustee, as you are ultimately responsible for the operation of your fund.
Establishing the fund
The first step when establishing a new self managed
superannuation fund is the creation of a Trust Deed. The Trust Deed, together with the relevant laws and fund documentation, governs the relationship between the trustee(s) and members, as well as outlining the rules under which the fund operates. Funds administered by YourChoicemust use a standard Trust Deed.
YourChoicewill make available a standard Trust Deed for the establishment of a new self managed superannuation fund. You execute the Trust Deed with an initial meeting of trustees and/or corporate trustee directors of your fund.
8 Colonial First StateYourChoice Self Managed Super
For existing funds, YourChoicewill provide you with a Deed of Variation which the trustee(s) will need to execute so that the fund’s Trust Deed conforms with the YourChoicestandard Trust Deed. You will need to independently consider the amendments that will be made to your fund’s Trust Deed and decide whether they are consistent with your trustee duties before you can execute the Deed of Variation.
Setting up the investment strategy and
managing the assets
You set the investment strategy of the fund and manage the fund’s assets. This is an area where we recommend you seek financial advice.
You inform us of the investment strategy of your fund as part of the application process. The investment strategy governs what investments are held, as well as informing all members of the investment parameters of the fund.
When developing and reviewing the investment strategy, it is important to keep in mind which investments are allowed under the Trust Deed and the investment rules that govern the management of superannuation assets. A summary of the allowable investments is shown in the table below. Further information is detailed on page 26.
Establishing a fund bank account
You will need to establish a cash account for the fund and provide us with the account details. This can be any Australian financial institution account, however, if the account is a Colonial First State cash management trust, the funds held will count towards a discount on the Administration Fee.
We will draw the YourChoicefees and costs from this account and may in the future, after notifying you, use this account to meet fund liabilities on your behalf.
Trustee declarations
When you become a trustee of a SMSF, you will be required to sign a declaration stating that you understand your duties as a trustee (or director of a corporate trustee) of a self managed super fund. This declaration is required to be kept with the fund records for at least 10 years.
Making contributions and benefit payments
You arrange for the acceptance of contributions and payment of benefits and notify us when they are made. You must ensure that the fund only allows contributions and benefit payments permitted under the legislation. This document includes a section about who can make contributions (refer to page 17) and when and how benefit payments can be made (refer to page 21).Lodgement and payment obligations
All self managed superannuation funds must lodge documents with the ATO each year. Depending on the structure and circumstances of your fund you may also be required to make payments. YourChoicewill prompt you to make payments and supply you with the necessary documents to meet your obligations.
Ensuring the fund is and remains compliant
If your fund becomes non-complying, certain penalties may be enforced on you and your fund by the regulators.YourChoicewill support you by regularly providing information and reporting about your fund’s ongoing compliance. It will be your responsibility to rectify any of the issues we identify. As the trustee, you are ultimately responsible for your fund remaining compliant. If you have concerns about understanding the requirements, we suggest you seek professional advice before establishing a self managed superannuation fund.
Corporate trustees
If you require a corporate trustee, you will need to establish this yourself or with the help of a professional adviser. Once it is established, we will support you in meeting the ASIC requirements, but it is important that you are familiar with the requirements under the Corporations Act. You will need to notify us of any changes that impact the corporate trustee as soon as they occur.
Providing us with details about fund investments
When you make an investment on behalf of the fund, you will need to supply the investment manager, CHESS sponsor or share registry with our mailing address. This ensures that we have all of the most up-to-date information we require to administer the fund effectively (for more information on YourChoiceacting as the fund mailbox please refer to page 8). There will be situations in which you have or receive original documents of which we will require a copy in order to administer the fund (for example, if you purchase a work of art). You must provide us with a copy of this documentation and any other information we request from you or your adviser. You will need to supply them to us in a timely manner.It is important that you provide us with accurate information when requested or we will be unable to adequately administer your fund. Colonial First State cannot be held liable for any consequences which arise as the result of untimely, incorrect or incomplete information.
Change of details
If any details of your fund change, you will be required to notify the ATO within 28 days of that change. In this case you should contact YourChoiceas soon as any details change so that we can notify the ATO within the required period. Change of details that should be reported include change of fund:
W name of your fund
W contact details (address, phone number, contact person) W membership
W trustees details (including directors of a corporate trustee)
Allowable investments
Listed shares/trusts Unlisted shares/trusts Real property Cash
Other – Collectibles (such as artwork, coins and antiques)
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S e c ti o nColonial First StateYourChoice Self Managed Super
Fees and other costs
Type of fee or cost Amount1
Details
(All fees are deducted via direct debit from your fund’s nominated cash account.)
1 Fees include GST, except where otherwise stated.
This section outlines the fees and other costs you may be charged for
YourChoice
.
You should read all the information about fees and costs because it is important
to understand their impact on your fund.
Ongoing fees and costs
There may be other fees and costs you incur as a result of operating your fund. The fees shown in the table only relate to YourChoice.
Fee is deducted when you first obtain a YourChoiceaccount.
This fee commences when the YourChoiceaccount is first established and is deducted on a monthly basis (in arrears). Real property holdings (as defined on page 26) are excluded from the calculation of this fee.
The discount is applied to the Administration Fee in proportion to the value of the fund’s investments (excluding real property) held in Colonial First State investment products. Refer to page 12 for more details.
Real property holdings are excluded from the calculation of the Administration Fee and a flat fee is charged. This fee is charged annually:
Wupon establishment for funds with existing property
holdings, or
Won purchase for funds adding property for the first time,
and
Wat the start of each financial year for subsequent years
property is held by the fund. For further information refer to page 12.
Establishment Fee
This is the fee charged for establishing an account withYourChoice.
New funds
(including a new Trust Deed)
Transfer existing Trust Deed
(including Trust Deed amendments)
Administration Fee
The fee charged for the ongoing administration of your fund.
Colonial First State discount
A discount rate applies when Colonial First State investments (as stated on page 12) are held.
Property Fee
The fee charged for any real property held by the fund.
10 Colonial First State YourChoice Self Managed Super
$660 $990
Value of your Fee (% pa) fund’s assets excl. incl.
(excl. real property) GST GST
First $200,000 1.00 1.100 Next $150,000 0.50 0.550 Next $500,000 0.05 0.055 Over $850,000 0.03 0.033 A minimum fee of $2,200 applies for funds with assets of $200,000 or less. Up to 25% of the Administration Fee
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Additional fees and costs
Type of fee or cost Amount1
Details
(All fees are deducted via direct debit from your fund’s nominated cash account.)
Fees are charged on a per item basis. Additional Service Fee
Audit Fee
Actuarial Fee
The fee for use of the YourChoice
actuarial service.
Complying and non-commutable pensions
Allocated and Term Allocated Pensions
Trust Deed Amendment Fee
Fee charged for any amendments made to the fund’s Trust Deed.
Direct Debit Dishonour Fee
Fee charged for any direct debit dishonours.
Adviser Service Fee
Please refer to page 13 for further details.
$66 (per hour)
This fee will be arranged between you and your nominated auditor. We can arrange for the annual audit to be completed for you.
$660 $330
$165 (per amendment)
$55
Negotiated with your adviser.
This fee may apply if YourChoiceneeds to provide services outside the normal administrative functions. For further information refer to page 13.
Refer to page 13 for further details about this fee. Further information about the standard auditor is outlined on page 7.
Only certain pensions require actuarial certificates. These fees only apply if you choose to use the YourChoice
actuarial services.
Fee is deducted upon the commencement of the pension (per pension) and annually (per fund).
Fee is deducted annually (per fund).
We will send you a Deed of Variation when we consider that it is necessary. We will deduct the Trust Deed Amendment Fee each time we do this. Refer to page 13 for further details. This fee may be charged each time a direct debit is dishonoured from your nominated cash account.
12 Colonial First StateYourChoice Self Managed Super
Fees and other costs
Minimum fund value
The minimum fund size is $200,000. We may accept amounts below this at our discretion. For self managed superannuation funds with balances below this amount, costs associated with managing a self managed superannuation fund may be high compared to fees charged by independently managed superannuation funds. Both ASIC and the ATO have expressed concerns about funds being established with balances below this amount. As a result, other superannuation options, such as a public offer superannuation fund, may represent a more appropriate solution. We recommend you seek financial advice to discuss the best option for you.
Minimum Administration Fee
A minimum Administration Fee of $2,200 pa (inclusive of GST) applies. For funds which hold real property, the Property Fee is payable in addition to this minimum fee. Any discounts applicable will be reduced until this minimum fee is met. Where the fund’s cash account is the only asset held by the fund, the minimum fee will apply regardless of value. We will begin charging the Administration Fee from the time we receive aYourChoice
Application Form.
Establishment Fee
Under normal circumstances, the fee quoted in the fee table on page 10 will be all that is applicable to establish a YourChoice
account on your behalf. In the event that the fund is deemed by us to be ‘complex’ or ‘neglected’1, we may charge an Additional Service Fee. If this fee is payable, we will notify you of this, as well as the amount and method of charging during the YourChoice
account establishment process.
Discounts on YourChoice Administration Fee
We will apply a discount of 25% to the YourChoiceAdministration Fee payable on Colonial First State investments2. This is calculated as 25% of the assets held directly in Colonial First State investments as a proportion of the total fund value excluding real property holdings. For example, if half the assets, excluding real property, are held directly in Colonial First State investments, the Administration Fee would be discounted by 12.5%. The discount will not reduce the fee below the minimum Administration Fee (as shown in the table on page 10).
Property Fee
Real property (as defined on page 26) is excluded from the fund’s assets when calculating the Administration Fee, and a single fee of $495 pa (including GST) will be applied after the Administration Fee and any discounts have been calculated. The flat fee will cover most scenarios. However, we reserve the right to charge an Additional Service Fee for the time we deem over and above what the standard fee for property covers (for example, where the fund holds a number of properties; where the property component constitutes the majority of a large fund; or where there are complex tenancy arrangements).
If an established fund (transferring to our administration) has real property holdings for which an Additional Service Fee will apply, we will notify you of this during the YourChoiceaccount establishment process.
For newly established funds, we will provide the trustee(s) with sufficient notice that we intend to charge an Additional Service Fee in advance of charging the fee. If you anticipate having significant property arrangements, you should discuss this with us prior to applying for a YourChoiceaccount.
If real property is the only asset held by the fund (with the exception of a single cash account), the minimum fee as shown in the table on page 10 will apply regardless of the fund value and no Property Fee will be applied.
Fees and costs example
The following table shows the impact of YourChoicefees for the first year. The example assumes a new fund with a total balance of $500,000 with $150,000 of Colonial First State investment holdings and real property worth $200,000.
All figures shown in the table above include GST.
The figures shown in the table on the previous page do not include the costs associated with the investments of the fund (these will depend on the investments you select), audit or actuarial services, trust deed amendments or additional service fees.
Fees and
discounts Details Fee amount
On establishment
Establishment Fee New fund On establishing a new fund you would be charged $660.00 Ongoing
Administration Fee Account For the $300,000 balance $500,000 subject to the
Administration Fee Less property the fund would be holdings ($200,000) charged $2,750 Account balance
subject to Administration Fee
$300,000
Less ($150,000/$300,000) x 25% By holding $150,000 Discount for = 12.5% of $2,750 worth of Colonial holding Colonial $343.75 First State First State investments, the investments Administration Fee
would be reduced by $343.75
Plus Property holdings
Property Fee of $200,000 Flat fee of $495
Equalsthe cost of $2,901.25
administration for the year
Additional explanation of fees and costs
1 Refer to page 29 for more information about existing funds.
2 This includes FirstChoice Wholesale Investments, FirstChoice Investments, Colonial First State Managed Investment Funds, Colonial First State Cash Management Trust, Colonial First State Premier CMT, Colonial First State Wholesale Hedge Funds and Colonial First State Diversified Strategies Fund. Before investing in a Colonial First State investment product, you should read the relevant Product Disclosure Statement.
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S e c ti o nAnnual supervisory levy
The ATO also charges an annual supervisory levy of $150. This payment is incorporated in and due at the same time as your fund’s tax liability.
Other fees and costs
Unless specified otherwise in this document, any fees or expenses relating to the administration of your fund or its investments are paid by the fund and not by YourChoice. Examples of expenses include, amongst others, expenses for the management or valuation of investments, ATO levies, and annual review fees for corporate trustees.
Minimum cash holdings
You must keep sufficient cash in the fund’s cash account to meet the fees and costs of the fund. In the event that a direct debit dishonours, we may apply a $55 (including GST)
dishonour charge.
Audit Fee
You can arrange to have your annual fund audit completed by your accountant, in which case the fee will be arranged by you directly with your accountant.
Alternatively, we can arrange to have the audit completed by our standard auditor. If you elect to have the standard audit, we will notify you of the applicable fees with your Welcome Kit. Further information is available by contacting YourChoiceClient Services.
Trust Deed Amendment Fee
When there are changes to superannuation laws and practices (where necessary), we will send you a Deed of Variation which, once executed, will update your Trust Deed to reflect the changes. The Trust Deed Amendment Fee is deducted from the fund’s nominated cash account. This fee is charged for any amendments made to the fund’s Trust Deed.
Change in trustee
A change in trustee of your fund will require the ‘Deed of Retirement’ and ‘Appointment of New Trustee’ forms to be completed. The Trust Deed Amendment fee will apply. You will also need to notify us as soon as possible so that we can notify the ATO within 28 days (see page 9 for more information).
Transferring your fund to another
administration provider
You will be required to pay fees and charges applicable to the transfer of the fund to another administration service provider, including the YourChoiceAdministration Fee, until the transfer has been completed.
Winding up your fund
The trustee(s) will be required to pay fees and charges applicable to winding up the fund, including the YourChoiceAdministration Fee, until the winding-up process has been completed.
Depending on the timing of the request to wind up the fund and the ATO lodgement requirements, this process may take up to 14 months to be finalised.
Increases or alterations of fees and discounts
We may increase or alter fees or discount arrangements at our absolute discretion. This could include increases, decreases, changes in operation or introduction of new arrangements, such as moving to transaction-based fees.We will notify you in advance if the changes will increase the
YourChoicefees and costs we may charge you.
Additional Service Fee
In addition to circumstances outlined in this document, there may be occasions when an Additional Service Fee is payable. This fee will be applied in situations where we consider an action ‘extraordinary’ to the daily administration of a self managed superannuation fund or in situations not specifically provided for in this document.
In the event that we consider this fee is warranted, we will notify you of the fee prior to undertaking the work. To ensure you have certainty around the cost, we will fix the fee prior to undertaking the work. We will deduct the fixed fee as a single item and will not provide specific accounting of the time taken to complete the work.
Accounts for prior years
When you transfer a fund toYourChoice, we will undertake the work required to bring the accounts up-to-date for the current financial year. If we receive your application and all required fund records and documentation by 31 August, the work to bring the previous financial year’s accounts up-to-date will be included in the Establishment Fee quoted on page 10.
If you have unaudited accounts for previous financial years, we can also bring these up-to-date and arrange an audit for you. An Additional Service Fee will be applicable for this work. We will confirm the details, including the fee, with you prior to undertaking the work.
Adviser Service Fee
You can agree with your financial adviser to have an Adviser Service Fee paid directly from your nominated cash account. The Adviser Service Fee will be paid to your current adviser or any subsequent adviser listed on your account.
An ongoing fee can be charged as:
W a percentage of your fund’s total value, or W a set dollar amount.
This ongoing fee will be deducted on a monthly basis with your Administration Fee.
In addition, a one-off fee can also be charged as:
W a set dollar amount.
In limited circumstances your adviser, or the dealer group they belong to, may receive benefits for provision of services. If these payments are made, they are paid by us and are not an extra amount paid by your fund.
14 Colonial First StateYourChoice Self Managed Super
YourChoice account management
To make it easy for you to keep up-to-date and manage your fund through
YourChoice
, we provide you
with a number of instruction options:
An easy way to monitor your fund is by using our secure internet service, FirstNet. You can access FirstNet
by visiting our website colonialfirststate.com.au.
The table below provides you with information on how to apply for and use
YourChoice
and the
instruction options available to you.
Internet
colonialfirststate.com.au
Telephone
1300 720 441
Fax
1300 720 794
Colonial First State GPO Box 3254 Sydney NSW 2001
Whether you prefer the internet, telephone, email or fax, using
YourChoice
is easy.
How do I… What I need to do Instruction options Things to be aware of
This form must be signed by alltrustees. Please complete and sign the Investment Strategy
form available from our website or by phoning us.
Update the fund’s investment strategy?
Certain changes may require a change to the Trust Deed and incur a fee. Please refer to pages 10 to 13 for further details.
For changes to corporate trustees (eg contact or director details), it is important you notify us of the change as soon as possible. Late notices (eg more than 28 days after the change) may incur charges imposed by ASIC.
Please notify us of the change. We will coordinate all the necessary forms and send them for you to sign.
Add, update or delete a member/ trustee?
Certain types of changes will require a written request, accompanied by certified
documentation.
This bank account is for the deduction of
YourChoicefees. You will need to inform (if applicable) any investment managers, CHESS sponsors or share registry of the change yourself.
Please contact us if you wish to make changes to your contact details.
If you wish to change the fund’s cash account details you will need to complete a Direct Debit Authority form available from our website or by calling us.
Change YourChoice account details?
Please ensure you have considered whether a self managed superannuation fund is appropriate for your circumstances, including the risks and the impact fees may have on funds with smaller balances.
A checklist that outlines the steps you must take to set up an account is provided in this document.
Set up a YourChoice account?
5
S e c ti o nHow do I… What I need to do Instruction options Things to be aware of
Up to 90 days should be allowed in order for us to complete the transfer.
We will provide you with:
Whard copies of fund ledger reports, and Wcopies of fund documents (this may be
in the form of an electronic file). Please notify us in writing of your intention
to transfer the administration of your fund to another provider.
We will contact you or your adviser to facilitate the transfer.
Transfer the fund to another administration provider?
The disposal of the fund’s assets may realise capital gains and/or losses in the fund and tax consequences may apply.
The process of winding up a fund can take up to 14 months. We will continue to charge the Administration Fee until the wind-up process is complete.
Please notify us of your intention to wind up the fund. We will assist you in undertaking the required steps, which include:
WDisposing of the fund’s assets and either rolling over all member benefits to another complying superannuation fund or making final benefit payments to the members.
WPreparing and lodging any outstanding income tax and regulatory returns.
WNotifying you of payments required to meet the fund’s outstanding liabilities (payment of these is a condition of wind-up).
WEnsuring superannuation benefit reporting
obligations and requirements are met when paying out benefits to the fund’s members.
Wind up a fund?
Refer to pages 22 or 25 for further information on how your benefits are handled when you die.
Please complete a Binding Death Nomination form available from our website or by phoning us.
Nominate a person to receive my benefits when I die?
Refer to pages 20 to 22 for information about when a benefit can be paid from a
superannuation fund.
The commencement of a pension may require the preparation of an actuarial certificate which we will organise for you. Fees may apply. Please refer to page 11 for further details. Please complete a Pension Commencement form
available from our website or by phoning us.
Obtain my benefits as a pension?
This form must be signed by each member making a contribution.
There are restrictions around who can contribute to superannuation. Further information on who can contribute is included on page 17.
You make the contribution to the fund’s nominated cash account. You must complete the Contribution form available from our website or by phoning us. This allows us to accurately account for the transaction.
If the contribution is an in specie transfer of assets, please contact us and we will assist with the necessary paperwork.
Make a contribution?
This form must be signed by the member who receives the payment.
Preservation rules apply to superannuation benefits. Further information on these rules is included on pages 20 to 22.
You arrange for benefit payments to be made from your fund’s nominated cash account. You must complete the Benefit Payment form available from our website or by phoning us. This allows us to accurately account for the transaction.
Make a benefit payment?
For certain assets where it may be impractical to register the YourChoicemailing details (for example, property), you or your adviser will need to supply us with notification of the transaction and copies of the relevant documents. The investment must be made in the name of the trustee(s).
If you wish to receive investment correspondence by email, you can select this option by supplying your details: [email protected] When you make the investment you should supply
the investment manager, CHESS sponsor or share registry with the YourChoicemailing details:
[Your Trustee name(s)] or [Your Corporate Trustee] <Superannuation Fund Name>
c/- YourChoice Self Managed Super GPO Box 3254
Sydney NSW 2001
Once we are registered as the mailing address for an investment, we will receive notification of subsequent transactions automatically. For these investments there is no need for you to notify us.
Inform YourChoice of investments made by the fund?
