APRA has written to trustees of APRA regulated superannuation funds to provide an update on its guidance for verifying the validity of requests for a transfer or rollover to a self-managed superannuation funds (SMSF).

New SMSF Member Verification System

APRA says that the Tax Office has developed a new SMSF member verification system which will be ready for use from 3 November 2010. The new SMSF member verification system will allow trustees (or where applicable their authorised administrators) to complete an online search to confirm if an individual is a member of a nominated SMSF as part of the rollover process. This system is available through the ATO Business Portal accessed with an AUSkey or ATO Digital Certificate.

According to APRA, the Tax Office system will provide greater transparency for trustees and their administrators when performing transfers and rollovers into SMSFs. This new system will provide trustees and administrators with a level of confidence that an individual is recorded by the ATO as a member of a particular SMSF. As a result, APRA considers that requests for additional documentation such as a trust deed should not be necessary. However APRA warns that these checks do not override a trustee's responsibilities in the processing of a transfer or rollover request, such as conducting adequate Proof of Identity checks to ensure the trustee is is dealing with the correct member.

Super Fund Lookup improvements

The Tax Office will also be updating the information included on the Super Fund Lookup Website to provide clarity in relation to the complying and regulatory status of SMSFs and identification of SMSFs. APRA says the Tax Office will also provide additional assistance to trustees and administrators in a wider range of situations, for example rollovers to SMSFs that have a status of "ABN cancelled" or "Non-complying".
The letter to trustees is available on the APRA Website.