Legal and beneficial ownership in Super Wrap in Retail Superfunds

Hi

I am seeking for an advice about protecting my assets.

the legal ownership in a super wrap account in retail fund is the super fund, the beneficial owner is e.g. myself.
If the super fund collapse, how would I protect myself.

TIA.

 

The legal owner would be the trustee. The super fund is the trust. It holds it on trust for you, but you must meet a condition of release to access it.

If the trustee collapses the assets of the trust would be at risk potentially. Nothing you can do about that really other than to not use a trustee at risk of collapse.

Why would the trustee collapse? Are there borrowings involved, what risks are there?

 

"If the trustee collapses the assets of the trust would be at risk potentially. Nothing you can do about that really other than to not use a trustee at risk of collapse.

Why would the trustee collapse? Are there borrowings involved, what risks are there?"

The trustee would be a retail SF (macquarie super wrap).
And I am thinking about the worst case scenario. So the risk is hopefully minimal.
So in that scenario, what are the routes I can do to protect my assets?

 

nothing I can think of

 

I am reading this:

When a liquidator is appointed over a corporate trustee they should perform the following:

1. Examine the trust deed’s terms and powers to understand the insolvent’s powers.
2. Understand what assets the trust beneficially owns.
3. Calculate the total creditors relating to the trust assets.
4. Examine the trustee’s creditors to determine whether they are creditors relating to the trust and its assets.
5. Analyse its books and records to understand if the insolvent’s only role is to be a corporate trustee for that one trust.
6. Ensure they do not breach their duty to act responsibly as the liquidator may be held personally liable for any loss incurred because of that breach.

from: Does a liquidator have a right to trust assets? - Worrells Solvency & Forensic Accountants
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Will having the trust deed/document entailing exactly that I am the beneficial owner, no lien/hold over my assets, and their role (just to hold my assets and I manage it - like blind trust) be helpful in the unlikely event of Macquarie SF collapse, do you reckon?

 

No, and it will be impossible for you to have the trust deed amended anyway.

 

Thank you!!

 

Bond Street Custodians Limited holds the funds investments in custody. How does this factor in with Macquarie Management Investment Limited being the trustee in the event of a collapse of the trustee?

https://www.macquarie.com.au/assets/bfs/documents/adviser/macquarie-wrap/supermgr.pdf

 

"
Bond Street Custodians Limited holds the funds investments in custody. How does this factor in with Macquarie Management Investment Limited being the trustee in the event of a collapse of the trustee?

https://www.macquarie.com.au/assets/bfs/documents/adviser/macquarie-wrap/supermgr.pdf"

I'm sorry, can you please explain to me what you meant? TIA

 

The custodian holds all investments absolutely for the relevant trust. The assets cannot be used to satisfy indebtedness of the legal owner. This limitation is different for a "trustee company" recognised under state law vs a typical trustee eg smsf. That is one of the powerful elements of this law. It protects members interests. The custodian typically does no more than hold legal interests under a custodian agreement for the interests of members where the trustee may operate as a trading entity and could be exposed but it has no claim upon custodian assets. The trustee itself generally will not be a custodian.

 

Thanks for your explanation. Much appreciated.
Do you know of any super wrap that has custodian arrangement?
TIA.

 

All wraps have a custodian arrangement for super. However non-super may not. Read the PDS.