QLD Self Managed Superannuation Fund (SMSF) Emptied by Financial Advisor

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Luca

Member
11 June 2014
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Our SMSF was stripped of all funds by the actions of our former financial advisor. There is little hope of any return, except from one minor investment and possibly from action against the auditor. We would like to wind up the fund because of the costs of administering such a small fund. If we do wind up the fund, will we still be eligible to claim any possible future returns?
 

Paul Cott

Well-Known Member
LawTap Verified
26 May 2014
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Ballarat, Victoria
Hi Luca,
Generally, if you wind up the fund, it will not generally mean that any possible future claim is precluded. Obtain legal advice on that though, to confirm.

That lawyer may send the financial advisor a letter of demand, on receipt of which the advisor will often put the matter in the hands of their professional indemnity insurers - who will often pass it on to solicitors who will often fight the claim very hard.

Another possible option you have is to raise the issue with the advisors (you may already have) and if their response is not satisfactory, a complaint to the Financial Ombudsman Service (www.fos.gov.au) may be a possibility. Though I don't have a lot of faith in that process.

Obtain or keep handy a copy of the fund's trust deed. Trustees of such funds can sometimes have some legal or practical responsibility for such losses, unfair though it may seem to lose your retirement savings.

Good luck.
 
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