ATO says beware of ‘boiler room’ sales tactics
ATO says beware of ‘boiler room’ sales tactics
The ATO has warned that some operators are using telemarketers to apply high-pressure sales tactics to lure superannuation trustee investors into high risk or suspect investments. This practice is known as ‘boiler room’ type operations.
Such tactics are being used to coerce investors to invest in artwork at inflated prices while promising inflated rental returns on these investments.
The value of complex asset classes such as artwork and collectables can be very subjective in nature.
There have been concerns raised with the ATO about how some of these assets are being valued in the marketplace.
To avoid any pitfalls in relation to such investments, trustees are encouraged to:
- seek a second, independent opinion when purchasing assets such as artwork;
- undertake a separate valuation of the asset (to confirm the SMSF has complied with relevant super laws); and
- ensure that the asset type is the right investment for their SMSF and complies with the sole purpose test.
Editor: If clients are contacted by telephone by anyone suggesting, that as trustees of their super fund, that they undertake new investments they should contact our office.
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.