Leading Member Data Capture

The purpose of this Leading Member data capture (attachment below) is to provide a platform for an adviser or accountant to engage with a client and more importantly elicit from the client who will be the Leading Member of the Fund. 

Step One:  Engage the Client about Family

A Leading Member fund is, as the name suggests, built for someone in the Family to lead the Fund.  Now a person may be invited to join the fund, but it is at the invite and behest of the Leading Member.  They can also be removed from the Fund by the Leading Member.  A Leading Member fund is generally not suitable for a single member fund, or a fund that may become a single member fund in the short term. It is built to protect a family’s superannuation wealth.

Even if you know the client, it is recommended that you find out as much detail about the family, the family members, the relationships that the children may be in, their financial prowess and whether they fit the “right profile” of a fund member.  With a maximum of 4 members allowed, spots in the fund should be coveted, so there may need to be a culling in some families or better still, the creation of two or more Leading Member SMSFs.

Step Two:  Determine whether a Leading Member SMSF is for them

Appendix 1 provides a Client Strategy Sheet which details what and when to use a Leading Member SMSF plus the benefits and risks.  You should take your client through this as part of your initial meeting. It is very important that they understand how a Leading Member fund works.

The Client Strategy Sheet is a simple system to get the client into the right state of mind to discuss Leading Member SMSFs.  It should be used by all advisers to provide consistency during the interview and data capture process.

Leading Member Data Discovery Form