Protecting your SMSF Clients

When even the big industry funds are under attack from cyber criminals, you may be left wondering just how vulnerable your SMSF clients are and whether there is anything you can do to help protect them.

And is it just cyber criminals they need protecting from?

Let’s take a look at the ways you can help to protect your SMSF clients.

Reviewing your IT Framework

IT Service Providers are now offering cyber audits to assess the vulnerabilities you have in your own IT Framework. These audits give you a list of actionable items that may help to keep your IT systems more secure and less susceptible to infiltration.

Utilising an SMSF Specialist Software with Two Factor Authentication

When selecting SMSF software you can choose one that has Two Factor Authentication which makes sure that only the persons who have been properly authorised to use the software are using it.

Adjusting your staff hiring process

Obtaining criminal checks for potential new staff is one way of helping to weed out people who are not best suited to working with your SMSF clients.

Implementing Proof of Identity processes

Properly identifying new clients by following standards recommended by the Tax Practitioner’s Board and the Australian Taxation Office can help safeguard you and your SMSF clients. Considering when Proof of Identity is appropriate for existing clients is also important. You may for example, consider it appropriate when rollovers out are being initiated.

Making a fully substantiated file your standard

Your SMSF clients can be susceptible to all types of fraud including fraud committed by other SMSF members.

If your standard is to have a fully substantiated file for the auditor, then it is harder for fraudulent transactions to occur because there is nowhere to hide them.

Delivering ongoing processing

Having a service that processes transactions on an ongoing basis means that any unusual transactions can be identified and investigated promptly.

Engaging a reputable, independent auditor

It is unlikely in the event a fraud is committed against one of your SMSF clients that they will thank you for the cheap audit. Engaging a reputable, independent auditor who is applying their professional skills in an appropriate timeframe, gives you a better chance that they can uncover a fraud (even though they are not required to).

Checking investments are properly insured

If you have the documentation supporting insurance transactions, you can check the details included, particularly, the insured party.

Providing access to audit insurance

Any SMSF can be chosen for an ATO Audit and the time involved in attending to them can be lengthy. If you can provide access to audit insurance for your SMSF clients, you can help mitigate this cost.

Encouraging regular review of the Investment Strategy

Encouraging your SMSF clients to regularly review their Investment Strategy (as required) is one way to make sure their SMSF continues to meet their needs. It can help you keep informed as to whether their risk profile has changes or other circumstances that may have changed.

Finding out if they have a Capacity Plan

Determining if your SMSF Clients have Enduring Power of Attorney documents in place and talking about their plans in the case they have future capacity issues, can help make this transition easier and leave the SMSF potentially vulnerable for a shorter period.

Checking in with your SMSF Clients

As the population of SMSF Clients ages, it makes sense to start checking in with them, particularly to check on their enthusiasm and their capacity to continue looking after their SMSF. 

Since 2007, Keep It Simple Super has helped Financial Advisers and Accountants deliver best practice SMSF compliance with simple, hassle-free client solutions.

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We work closely with our clients to customise their SMSF service so they can easily and confidently grow their SMSF businesses.

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Get in touch to find out how doing things the KISS way can help you and your SMSF clients.