Are there any Risks Associated with a Leading Member SMSF?

1. The Leading Member Controls
   Ultimately the Leading Member controls the Fund and all members are subject to appointment and removal by the Leading Member. Of course the superannuation and trustee laws require that the Leading Member must act on behalf of all members.  However where the member may be subject to a legal dispute or a family law action, which may jeopardise the Fund, the Leading Member has the power to determine the current value of the Member’s benefits and pay these out on termination.
   
2. Knowing the Leading Member
   Before joining a Leading Member SMSF a prospective member should discuss with the Leading Member their rights and entitlements and be comfortable with how the Leading Member is to run the fund.