The Self Managed Super Funds Phase Three’s preliminary reported, that dealt with the issue of Self Managed Super Fund’s will be banned from investing in the personal use assets.

With over 410,000 SMSF in Australia, Jeremy Cooper, the Former ASIC commissioner agree that the SMSF trustees were free to choose their own investments but had to refrain from the extra splurges on personal assets. Some of these personal assets include exotic wine, cars, jewelry, golf club membership etc.

Though, the panel agrees that these kinds of personal assets can give good amount of profit over time, they also provide with good value over time. The main objective of Self Managed Super Funds were to focus on the retirement savings, than the over splurging on personal assets, party transactions and leverage.

With very stringent prescribing, the legislation will have to determine and distinguish between the definition and detail on exotic investments.

With Copper Review on strict focus on the Self Managed Super Funds, it also recommends to award penalties the trustees, who are found to be breaking the law. It also implies that the penalty should not be payable from the body of the fund. This kind of action can lead to severe consequences.