"WARNING - one downside of an SMSF that I found out about only after having set one up is that in the event of fraud you will not be covered by the gov't regulator APRA as far as compensation is concerned. SMSF's by way of their structure are considered by Shorten as sophisticated financial instruments and you (trustee) are responsible for your actions with no recourse. Retail funds are covered by APRA and compensation can be sought due to fraud. Be aware of any financial advice you seek or where a fund manager is likely to put your hard earned dollars. "
That's all true. However, let's remember that people investing in APRA controlled funds pay a levy for that potential compensation.
As someone with a SMSF, the absolute last thing I want is to be forced to pay some levy in order to bail out others with SMSFs who are silly enough to engage in dodgy investments.
