There are ramifications when a trustee in a self managed super fund (SMSF) becomes a disqualified person. An individual can become a disqualified person if any of the following conditions apply. If they: -have been convicted of an offence involving dishonesty -have been subject to a civil penalty order under the super laws -are insolvent under administration -have been disqualified by a court or regulator A company is a disqualified person if any of the following conditions apply: -a responsible officer of the company (such as a director, secretary, or executive officer) is a disqualified person -a receiver, official manager, or provisional liquidator has been appointed to the company -action has been taken to wind up the company Under superannuation laws, if an individual becomes a disqualified person they must notify the ATO immediately of their disqualification- unless they were disqualified by the ATO- and cease being, or acting as, a trustee. It is an offence for a disqualified person, who is aware of their status of being disqualified, to continue to be, and act, as a trustee of the SMSF.  Penalties for this can include fines and in some cases, imprisonment. To determine whether a disqualified person can again … Continue reading Trustee obligations of a disqualified person