Crystallisation – YOU MUST READ THIS!

Your Super Admin, as your administrator, is required to crystallise the pre-July 1983 component of your superannuation interest before 30 June 2008. If this is not done by 30 June 2008 your fund may be subjected to an administrative penalty. Therefore it is important that your co-operation is given while we undertake this task to maximise the benefit of Crystallisation.

Step 1 – We will be undertaking Super Search for all our clients. The reason being is that as the pre 83 calculation is a date based, even if you find $1 in pre 83, it has the effect of converting a major portion of your post 83. This will be done over the next month, target to be finished by February. As we discover potential balances we will inform you so you can arrange for the roll-over’s to occur.

Step 2 – Once this is complete then we will undertake crystallisation. This is targeted for May. We will also forward confirmation of the crystallisation components for each member.

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Investing in Instalment Warrants

There have been a number of announcements about superannuation funds investing in Instalment Warrants. Instalment warrants are investment products that traditionally provide an investor with the right, but not the obligation, to buy an underlying asset through the payment of instalments. Such arrangements involve a limited recourse borrowing by the superannuation fund (that is, the fund’s other assets cannot be used to repay the loan).

Generally, trustees of superannuation funds are not permitted to borrow under current superannuation legislation, the Superannuation Industry Supervision Act 1993, (the SIS Act). As instalment warrants entail a borrowing, both regulators (APRA and the Tax Office) considered this a contravention of the legislation.

Following industry consultation, the Government has finalised legislation to legitimise investment by superannuation funds in instalment warrants. Under the Bill a superannuation fund trustee are allowed to borrow money under an instalment warrant arrangement that has the following features:

1. the borrowing is used to acquire an asset that is held on trust so that the superannuation fund trustee receives a beneficial interest and a right (but not an obligation) to acquire the legal ownership of the asset (or any replacement) through the payment of instalments
2. the lender’s recourse against the superannuation fund trustee in the event of default on the borrowing and related fees, or the exercise of rights (typically a put option) by the fund trustee, is limited to rights relating to the asset at the time of the action. These rights may include taking possession of, or disposing of, the asset; and
3. the asset (or any replacement) must be one which the superannuation fund trustee is permitted to acquire and hold directly. The asset may be any asset (e.g., real property, works of art in certain circumstances or listed securities) a fund would be permitted to invest in directly. The existing investment restrictions, such as those on in-house assets and acquiring certain assets from a related party of the fund, continue to apply.

The Bill also brought about amendments ensuring an investment by a SMSF in an instalment warrant will only be an in-house asset where the underlying asset would itself be an in-house asset if it were held directly. Funds that invest in instalment warrants must continue to comply with other legislative requirements. As the above provisions are subject to change, SMSF trustees should ensure that they are aware of the requirements now that the Bill has become law.

Please see this article for further reading.

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Your Super Admin News!

P-Desktop

We have recently rolled our P-Desktop to all our clients. This is a desktop version of what you are used to seeing on Your Portfolio Online with the data it captures. In fact all your funds assets, and portfolio transactions except for bank history is available via this system.

View the demo

P-Desktop is a FREE upgrade to your service. You get;

• Market data available either on a live feed or 20 minute delay, p-Desktop allows you to access:
• Watch-lists for quick access to particular stocks and indexes
• Trades and turnover data
• Full market depth information
• Powerful charting functionality
• News headlines, reports and announcements
• Dividends.
• Real-time client reporting - Integration with V-Wrap enables you to generate real-time client reports, including valuations, performance and realised and unrealised capital gains reporting

If you would like to upgrade your P-Desktop access to LIVE pricing and LIVE News please email our office for further details.

Data Files updated

New versions of the data file templates are available from our load up page. These include the Cash Book.xls, Preformatted Spreadsheet for trade and service asset data and the income entries spreadsheet for income entries. If you have assets that are not automatically updated via our links then you will be familiar with these files. Please delete all other versions and use these versions from now on.

Comsec Online Broker

We have been receiving quite a few manual entry requests due to Comsec not sending electronic contract notes to our processing centre. To alleviate this problem and reduce the occurrence of this fault by Comsec, we have updated an online instruction sheet in which all clients who use Comsec should read and follow.

Please read, and follow these instructions.

Your Portfolio Online – What’s coming

LIVE Bank Data Feeds!

We are delighted to announce that shortly Macquarie Bank CMT, Bank West CMT and Adelaide CMT will have direct data feeds for bank data to Your Portfolio Online. If you want to take advantage of these direct feeds please contact our office for further information.

All existing clients who have these bank accounts will be contacted to complete the appropriate paper work for these feeds to be established.

At present only ANZ- E*TRADE linked bank accounts and Bendigo Bank accounts are direct feed into Your Portfolio Online. NAB and Westpac CSV files are automatically unloadable via client download, with all other bank data required to be sent via our Cash Book.xls template for population into the system.

More Functionality

You have probably noticed some additional menu items. We’ll the team at Praemium have been working hard to deliver even more functionality. Here’s what’s coming soon;

• International share feeds
• FX feeds and currency holdings
• The ability to exclude securities from Performance
• Share Trader Re-evaluation
• Dividend Currency elections

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Fees!

After several years of not increasing fees, we are pleased to announce we have actually been able to deliver a fee reduction! After an extensive review of our fee structure and with some key system improvements, we have decided to remove 2 our processing surcharge fees;

1. Manual entry fees
2. Contribution/Withdrawal fees

Effective 1st Jan 2008, clients will not be charged these fees any further. Our annual fee of $1650pa remains the same. Please see our terms and conditions for an updated schedule.

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ATO Levy

The ATO Levy will also be increasing from $45pa to $150pa for the 07/08 regulatory year. Unfortunately we do not control this, as this is charged by the ATO directly to trustees. We will continue to pay this fee on your behalf when it comes due for your fund and then invoice you at your next billing cycle as we have always done. However with the increased amount we will be billing clients in advance for this ATO fee if you wish this arrangement to continue. If you wish to pay this directly please advice our office and we will note this on your account so that it is removed from your ongoing billing cycle.

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Sanford Clients

On the 29th January all Sanford clients were switched off and switch on to trade through Comsec. This means that you will need to re-setup your broker link with Comsec. For further information regarding this change please see http://www.comsec.com.au/public/news.aspx?id=922 & http://www.bestofboth.com.au/

All client affect will also need to reconfirm their broker account setup information with our systems. If you follow these instructions, this will ensure you continue to provide our office with a direct feed of your trade data.

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Macquarie CMT is now LIVE!

Macquarie CMT accounts now have a direct feed into you’re Your Portfolio Online.

If you do not have a Macquarie CMT, and would like to take advantage of this as an account for your SMSF then please contact our office for the appropriate referral, and authorities to be completed.

There are a number of providers of cash management trust accounts in Australia, the largest of which is operated by Macquarie Bank. As one of the options in the market place, you can have a look at the Macquarie CMT PDS and, if you decide to use this account as your cash hub, then please let our office know. We have a referral agreement with Macquarie; therefore we have a direct point of contact within the bank that will set up all Macquarie CMT's for our clients efficiently and fast. Ultimately it is a decision for you, the client; given that we are unlicensed we are not able to give financial advice.

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For further information contact Your Super Admin Pty Ltd

Copyright © 2007 Your Super Admin Pty Ltd

Disclaimer: The material contained in this publication is in the nature of general comment and information only and neither purports nor is intended to be advice on any particular matter. Readers should not act or rely upon any matter or information contained in or implied by this publication without taking appropriate professional advice.