Last week I discussed your trust deed’s General Compliance Clause. I mentioned a brief history of these clauses and what they were initially trying to achieve. I also showed you why they’re no longer really necessary, can make your fund legally complex to operate and potentially make rules only meant for large super funds applicable to your super fund.
This week I’ll introduce the other common clause found in most Self Managed Super Fund (SMSF) trust deeds, which many of you rely on to run your fund on a day to day basis – catch-all clauses.
You need to know this
It’s paramount you and your fund administrators understand both the practical and technical limitation of catch-all language and catch-all provisions.