Self managed superannuation funds (SMSFs) have been tempted into investing in investment scams including fraudulent schemes from Nigeria, according to a South Australian law firm.
"We have had a couple of our clients over the last year that have been contacted by these investment scams," Mellor Olsson managing partner Andrew Goode said.
"With the Australian dollar rising steadily, it may be tempting for trustees of these funds to yield to the attraction of overseas investments," he said.
While there have been no reported cases of such funds being swindled by fraudulent investors, the Self-Managed Superannuation Fund Professionals' Association (SPAA) warned trustees to be extra diligent.
"It is important that trustees remain prudent in their investment decisions and carry out the appropriate due diligence for any investments made by the fund," SPAA chair Graeme Colley said.
Colley said this was particularly the case following taxation changes made to instalment warrants
In April, the Federal Government allowed SMSFs to use instalment warrants as an eligible form of gearing.
We may see some unlawful practices resulting in the promotion of these instalment warrants. Trustees must be extra careful, Colley said.
