“BGL has had a presence with our CAS Desktop software in Hong Kong since 2000,” said Ron Lesh, BGL’s Managing Director. “Our clients have been hanging out for information on when CAS 360 will be available to them in Hong Kong so I’m proud that we can today announce this will be Quarter 2, 2022.”
Published by SMSF Adviser, powered by MOMENTUM MEDIA
Written by Miranda Brownlee on 8 December 2021
Click here to read on SMSF Adviser website
The small number of SMSF messaging providers currently offering rollover services is creating challenges for SMSFs in some instances as funds attempt to comply with the new SuperStream standards.
Speaking in a recent podcast, BGL head of Simple Fund 360 product Matt Crofts explained that while the latest SuperStream measures for rollovers and release authorities will result in a more standardised and streamlined system, one of the challenges being encountered by some SMSFs is the fact that many institutions are no longer SuperStream providers.
Under the new standards, SMSFs are required to get an electronic service address (ESA) from an SMSF messaging provider or SMSF intermediary in order to receive SuperStream data.
Mr Crofts explained that SMSFs need to ensure that the ESA provider can support rollovers for SMSFs.
With the newest SuperStream standards requiring an 18-month software build for BGL, this latest version of SuperStream, he said, has seen many institutions drop out as SuperStream providers.
“When SuperStream first started, which is going back around five or six years ago, there were close to almost 40 SuperStream providers and slowly they’ve realised its a tough game to be in terms of compliance and keeping up to date [with everything] and there’s very little way to charge for that,” Mr Crofts explained.
“I think around half the providers that were in there dropped out … and this latest round of SuperStream requirements were huge so it may have halved again.
“[In some cases], people are not aware of them dropping out or they’re not receiving correspondence because some of that correspondence might be going to the trustee and not the accountant who are really the ones initiating a lot of the rollovers.”
Speaking in the same podcast, Smarter SMSF chief executive Aaron Dunn said becoming a SuperStream provider was initially a more enticing business model because it was mainly dealing with inflows into an industry in the form of contributions.
“So, financial institutions were more than accommodating to be able to put these things in place because it meant they were getting cash flows into their cash accounts,” said Mr Dunn.
The landscape is now very different, however, said Mr Dunn, especially given the level of development required for the latest version of SuperStream.
“I’ve seen discussions on the notion of people going to look for an ESA and trying to find a free ESA so they can do things [but] those days are arguably over,” he said.
This leaves the major SMSF software companies such as BGL, Class and SuperMate as the only ESA messaging providers on the ATO register that can currently provide SuperStream rollover services for SMSFs, with Australia Post still working on finalising its offer.
DBA Lawyers director Daniel Butler said this poses an issue for SMSFs that are not on these software platforms, as they are unable to undertake a rollover that is compliant with SuperStream.
“The ATO’s position is that unless the SuperStream rollover process is followed, a significant administrative penalty (currently $4,400 per trustee) may be imposed, the fund may be rendered non-complying and auditors are encouraged to lodge an auditor contravention report to the ATO, which may give rise to costs and inconvenience,” explained Mr Butler.
“In short, there is currently no workaround to the SuperStream system and significant penalties and risks for those funds that seek to bypass the system.”
This is creating a “very difficult situation” for numerous SMSFs who have pressing needs to complete SMSF to SMSF rollovers, said Mr Butler.
“I am aware of several SMSFs, for instance, that need to settle on property and investment acquisitions who stand to lose considerable sums and costs for failing to settle on time. Some of these funds are now having to consider other alternatives like limited recourse borrowing arrangements to make sure they are not at risk,” he explained.
Mr Butler noted that the ATO may however look to take a practical approach and not enforce compliance until there are more ESA providers.
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Written by Miranda Brownlee on 3 December 2021
Click here to read on SMSF Adviser website
The three-day turnaround required for SMSF rollovers under the SuperStream requirements is still proving difficult, with around only 20 per cent of rollovers estimated to be currently meeting the time frame.
From 1 October this year, SuperStream became mandatory for all SMSFs to roll over super to and from their funds. The new standards require a trustee to roll over or transfer an amount no later than three business days after the trustee received the rollover or transfer request or if the trustee requires further information, the date the trustee receives that information.
BGL head of the Simple Fund 360 product Matt Crofts said complying with the three-business-day time frame has been a challenge for SMSF trustees and APRA-regulated funds as well, with a straw poll undertaken by BGL revealing that the majority of rollovers are currently not meeting the three-business-day turnaround.
“We just did a straw poll and we know that there are only around 20 per cent meeting that three-day turnaround at the moment. There’s been some good ones that have turned around in 48 hours which is fantastic but […] looking at the data, the vast majority, around 40 to 50 per cent, are coming through within a seven-day time frame,” said Mr Crofts in a recent SMSF Adviser Show podcast.
“I think as we get used to the system and used to the new process, I think that’ll improve.”
Mr Crofts also stressed that if the trustee doesn’t have all the information, then they only need to respond back within the three days.
“You might be missing information so as long as you’re communicating back and forth with the APRA fund, if its APRA or SMSF, if its SMSF to SMSF, then as long as you’re reaching out and making contact, that [meets] the strict definition of three days,” he explained.
He also highlighted the importance of having automated feeds with bank and wrap services in trying to meet the three-day time frame.
“You’re going to have a greater chance of being able to meet that requirement because you’ve got all the transactions there, so even if you don’t have all the information, it’s going to be a quicker turnaround [than] if you haven’t got any bank statements in front of you and you’ve got to scramble to get all that information,” he said.
He also stressed the importance of accountants and advisers communicating with each other through the process.
“If you’ve got a planner involved in the process, make them aware of what the software needs,” said Mr Crofts.
“[For example], one of the issues when you roll across to an APRA fund is that you’ve got to have the correct USI, the identifier for the APRA fund, so you may need to give them a checklist or give them access to the software.
“It’s also communicating to the trustee that if they’re going to get any queries from the APRA fund or from the accountant [that they need] to properly communicate that.”
Published by SMSF Adviser, powered by MOMENTUM MEDIA
Written by Robyn Tongol on 1 December 2021
Click here to read on SMSF Adviser website
With the SuperStream measures now in place, SMSF professionals play an important role in helping clients manage some of the practical issues with rollovers, such as timing.
Following the introduction of the SuperStream measures on 1 October 2021, release authorities and rollovers to and from SMSFs are now required to comply with new data and payment standards. With these changes bringing new challenges to the SMSF sector, hosts Aaron Dunn and Miranda Brownlee ask Matt Crofts, head of Simple Fund 360 at BGL, to share some key insights from a software perspective on what practitioners need to be aware of.
Listen now!
Published by SMSF Adviser, powered by MOMENTUM MEDIA
Written by Miranda Brownlee on 1 December 2021
Click here to read on SMSF Adviser website
While the SuperStream measures have been in place since 1 October, there are some common issues impeding the rollover of money in and out of SMSFs, said an SMSF software provider.
From 1 October this year, SuperStream measures began to apply for rollovers and release authorities for SMSFs, with SuperStream now playing a much greater role in the sector.
The payment standards require trustees to roll over or transfer an amount no later than three business days after the trustee receives the rollover or transfer request.
While BGL head of Simple Fund 360 product Matt Crofts said that in the long term, the new payment standards would result in a more streamlined and standardised system between APRA-regulated funds and SMSFs, there are still some practical issues that are causing SMSF professionals and clients to be become unstuck.
One of the real sticking points, Mr Croft said, is with newly established funds. It’s important that SMSF trustees are notifying the ATO when establishing the fund, he explained in a recent SMSF Adviser Show podcast.
“It’s not just registering the ABN; it’s also going onto the ATO portal or getting the trustee to update the bank details when they’ve actually obtained them,” said Mr Crofts.
“The reason you need to update the ATO is because when you do a rollover, the APRA-fund or SMSF transferring the money will need to check the records to make sure the fund is complying, that it’s got bank account details and the member’s TFNs are correct.”
The other big challenge, he explained, is that the bank account needs to be in the super fund’s name.
“We’re not just seeing instances where the bank account details are missing. Sometimes the refund from an SMSF annual return is not in the super fund’s name, and it is in the individual’s name or the trust account of the firm,” he said.
There is also a range of roadblocks that SMSFs are hitting when trying to roll money out of the SMSF, he said.
One issue, he said, is where people have slightly different names with the ATO in an APRA fund scenario compared to when they are lodging their individual return.
“So we’ve seen a little bit of mismatch in that space, so it’s important that the SMSF trustee or their planner or accountant communicates with the APRA fund,” he said.
“It creates a few challenges when they’re not exactly sure what’s wrong when they’re trying to roll the money out; it could be the bank account details, it could be the member’s details, it could even be a non-complying fund that for some reason hasn’t lodged a return for a while,” he stated.
Speaking in the same podcast, Smarter SMSF chief executive Aaron Dunn said a lot of the issues all revolve around verification.
“So, if there is married name change, then making sure that it’s been updated in MyGov so that that stuff marries off, that it matches what the ATO has on its records [is important],” he explained.
“Even little things like if the rollover is going out and you set a particular amount that that rollover is supposed to be, then make sure that your banking transfer will allow for an increased limit for that money to go out because those things have to match off for the transfer to actually be accepted on the other side as well.”
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Written by Tony Zhang on 15 November 2021
Click here to read on SMSF Adviser website
Heffron SMSF Solutions has added new features to its Super Toolkit, including a new BGL integration and multiple subscription levels.
Drawing on extensive technical knowledge and understanding of SMSFs, Heffron is creating new tools for SMSF professionals, which contain unique features to guide users through the process of creating fully compliant SMSF documentation.
As part of the latest release, Heffron has added a Professional subscription level to the Toolkit offer. Subscribers can now manage access for multiple users from within a firm to collaborate in a single account. They will still be able to share documents with interested parties outside their organisation, like trustees or financial advisers.
Another feature of the Professional subscription is integration with innovative and award-winning SMSF software provider BGL. This technology will allow client details to be populated in the documentation as it is created, creating business efficiencies.
“We are excited about the next evolution of our Super Toolkit. Our intention is to provide tools that enable intermediaries and trustees to play the role they want to play with SMSFs,” Ms Heffron said.
“For some, this might simply be providing a compliance document. For others, it will be guiding them through the key decision points for a range of different SMSF events or activities (we’re calling this ‘guided decision-making’).
“The BGL integration is something we are extremely proud of. This will save our clients time by allowing fund and member data to be automatically pre-populated from BGL’s Simple Fund 360.
“We will continue to develop useful tools to help our clients with many aspects of their SMSF work.”
For more information, go to https://www.heffron.com.au/services/super-toolkit.
Published by SMSF Adviser, powered by MOMENTUM MEDIA
Written by Tony Zhang on 10 November 2021
Click here to read on SMSF Adviser website
BGL has successfully completed its Simple Fund 360 integration with Colonial First State’s FirstWrap platform.
BGL Corporate Solutions’ Simple Fund 360 is now integrated with Colonial First State’s FirstWrap platform.
“It’s great to have Colonial First State as part of the BGL ecosystem,” BGL’s managing director Ron Lesh said.
“FirstWrap is a full-service wrap platform, providing comprehensive investment choice, convenience and great flexibility.”
Mr Lesh noted this new integration means FirstWrap now has seamless integration with Simple Fund 360, with bank, investment and income transactions automatically loaded.
“Simple Fund 360 will then automatically map the required accounts and tax data to drive further efficiencies for your firm,” he added.
Colonial First State’s chief distribution officer, Bryce Quirk, said FirstWrap is excited to partner with BGL and provide the benefits of Simple Fund 360 to members and advisers.
“Adding to the comprehensive tax reporting features of FirstWrap, the welcome addition of Simple Fund 360 integration will further enhance the value and efficiencies for our joint customers,” Mr Quirk said.
BGL currently has over 350 partners in the firm’s ecosystem, and it is great to be able to add FirstWrap to the list.
FirstWrap is a full-service wrap, including FirstWrap Plus Super, Pension and Investments, which offers advisers and clients comprehensive investment choice, convenient administration, and the flexibility to design a portfolio to suit their investment needs.
“It’s great to have Colonial First State as part of the BGL Ecosystem,” said Ron Lesh, BGL’s Managing Director. “FirstWrap is a full service wrap platform, providing comprehensive investment choice, convenience and great flexibility. This new integration means FirstWrap now has a seamless integration with Simple Fund 360 with bank, investment and income transactions automatically loaded”.
Published by SMSF Adviser, powered by MOMENTUM MEDIA
Written by Tony Zhang on 2 November 2021
Click here to read on SMSF Adviser website
BGL has made new updates for its CAS 360 platform, including the inclusion of the new upgrades to facilitate the recently introduced director ID.
In a recent update, BGL said that it had made new changes in its CAS 360 Product in October 2021.
With the introduction of director IDs being one of the biggest changes to corporate compliance work this year, BGL noted it has successfully built new features to easily facilitate the new process.
“In CAS 360, we have built a great set of features to help you through this new requirement,” CAS 360 head of product Warren Renden said.
“Each company now has a new alert, the director ID alert. This alert will show how many company directors have completed that director ID requirement when you hover over.”
Mr Renden said the director ID modal contains a number of important features.
“Firstly, you can email all company directors about the new director ID requirements; we have included an ‘introduction to Director ID’ email template, which you can customise, to let your clients know about this new requirement,” he said.
“You can see which directors have and have not completed their director ID requirements.
“You can also see if the director is also a director in any other company. If the director ID deadline date is fast approaching, you can send a reminder email to the director.
“If you do not have a director’s email address, you can add the email address via this screen. Also, once the director has completed their director ID requirements, you can add the ID number, and it will be saved against the director’s records.”
Digital signing improvements
BGL has also added some new features for clients who have CAS 360 integrated with its Digital Signing partners.
“Now, when preparing any set of documents in CAS 360, you can set that all signatories receive the signed document pack once it has been signed by all signatories. This is an option that is controlled by you as the preparer,” Mr Renden explained.
“If you are preparing an Annual Review and send it out for digital signing, you can now have the Annual Review automatically set as ‘Annual Review Complete’ when the document has been signed by all signatories.”
Also, for those that have an account with more than one digital signing provider or are in the process of transitioning from one provider to another, BGL has now added support for multiple signing providers connected to CAS 360 at the same time.
BGL also noted it had updated new ways to prepare Company Shareholder and Trust unitholder registers.
“We have built a beautiful MS Excel export of these registers,” Mr Renden added.
“We know how much you all love a good spreadsheet. CAS 360 now allows you to export these holdings and filter, sort or organise to your heart’s content.
“BGL has also added version 2 of its document management APIs for those that have documents integrated easier.
“We have a new trust relationship position in Alternate Appointer, improved the company screen hovers so they are less sensitive, and added new merge fields for addresses and capital.”
“I am incredibly proud of the team” said Ron Lesh, BGL’s Managing Director. “With the help of Joel Clapham, Founder and Chief Mental Health Champ at Hearten Up, all 25 members of the BGL leadership team are now accredited Mental Health First Aiders. This equates to 1 trained Mental Health First Aider for every 7 BGL team members.”
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