SMSF trustee meeting event checklist

2. Adopting an investment strategy

Once members have decided on an investment strategy they will need to adopt it unanimously at a trustee meeting. If members have very different approaches to investment risk, negotiation will be needed around establishing the fund’s asset allocation and this will all need to be documented in the investment strategy. The trustee minute should include a resolution that simply states: “All members of XYZ fund resolve to accept the attached investment strategy for the fund.”

Insurance needs also need to be included in an investment strategy and the resolution to adopt a strategy should specify that insurance needs of members have also been considered. You can find more articles on investments and investment strategy here.

3. Changes to the investment strategy

Any changes to your investment strategy need to be discussed at a trustee meeting and agreed upon by all members. It’s not enough for one member to say that they want to leave more of their funds in cash, they need to have some idea of projected returns of such an investment and explain to all members whey such an investment would improve their retirement outcomes. Any change needs to be minuted with a resolution that states that all parties agreed on the change.

4. Purchasing or divesting an asset (and transfer balance reporting)

If, as a result of an investment strategy change, an asset is bought or sold, this needs to be minuted when the decision is made. Transactions need to be made at arm’s length and if there are members in pension phase in the fund, transfer balance reporting of the transaction may also be required.

5. Starting up a pension

A meeting should be held when a member transitions from accumulation to retirement phase. An actuarial certificate will be needed when the member starts drawing down a pension and there will also be transfer balance event reporting requirements. All of this needs to be discussed among members at a meeting and documented in a minute.

6. Amending a trust deed

The trust deed is effectively a fund’s operating manual so any changes are important matters that need to be discussed and for which trustee meetings need to be held. Even if they are simple amendments, such as allowing a fund to pay a pension, a meeting could be a good opportunity to discuss potential future changes – such as allowing different types of investments.

7. Appointing a fund administrator/accountant or auditor

You may decide during the course of operating your SMSF that you would like to use a service provider, such as a fund administrator. You will probably also use an accountant and you are required by law to appoint an independent auditor to audit your fund each year. Each of these decisions to appoint professionals needs to be discussed and agreed on by all members and documented in a minute.

8. Adding or removing a member

If you wish to add members to your fund, or members want to leave, these decisions and the reasons for them should be discussed by remaining members and documented in a minute. A trustee meeting should definitely be held in the unfortunate event that a member needs to be removed as this is not a simple process.

9. Approving annual returns and accounts

Each year you will need to complete your fund’s accounts and annual return which needs to be lodged with the Australian Taxation Office. Completing your accounts requires your assets to be valued as at 30 June each year, which may require independent valuations. Final asset values for investments must be understood and agreed upon by all members at a meeting and all should have copies of the fund’s annual accounts.

The bottom line

Trustee meetings, and their resolutions and minutes, are meant to ensure that all members are across all matters concerning the fund. By requiring all members be involved, it makes sure that no party is better informed than any other.

We hope our checklist will assist you in holding frequent trustee meetings and documenting all decisions. Don’t forget – a trustee minute isn’t a complex document; just a statement of what has occurred during the meeting and what was resolved.