ASIC has begun legal action in the Federal Court seeking financial penalties and orders to prevent Superannuation Warehouse Australia (SWA) from flogging free SMSF set-ups.

Ungeared unit trusts could potentially become a relevant structure again for SMSF trustees should a ban on limited recourse borrowing arrangements (LRBA) go ahead.

SMSF trustees must take full responsibility for their decisions as breaches to investment standards could lead to problems with the sole purpose test as well as possible non-compliance, an industry expert has warned.

An SMSF strategy expert has recommended trustees with a limited recourse borrowing arrangement (LRBA) in place set up a small related-party loan as a safety measure to guard against the uncertainty surrounding the current superannuation gearing rules.