---
title: "SMSF investment strategy (including insurance consideration)"
url: "https://ailawframework.com/precedents/superannuation/smsf-investment-strategy"
type: "precedent"
site: "AI Law Framework"
id: "a27-smsf-investment-strategy"
area_id: "A27"
kind: "policy"
ai_level: "yellow"
version: 1
law_stated_as_at: "2026-10-17"
---

# SMSF investment strategy (including insurance consideration)

> Tailorable SMSF investment strategy covering objectives, risk, diversification, liquidity, liabilities, member insurance, reserves and review, structured to meet SIS Act s 52B(2)(f) and SIS Regulations reg 4.09.

Canonical page: https://ailawframework.com/precedents/superannuation/smsf-investment-strategy  
Law stated as at: 2026-10-17

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

- Kind: Policy. A policy or procedure for a firm or client.
- Practice area: [Superannuation](https://ailawframework.com/precedents/superannuation.md)
- Jurisdictions: Australia
- AI level: Yellow. AI can help in set ways. A lawyer checks specific points before use.
- Law stated as at: 2026-10-17
- Status: Maintained. Checked on 2026-10-17 against the 5 authorities it cites, for Australia.

## When to use it

Use when establishing an SMSF, after an auditor finds the strategy deficient, or at the annual review. Not a substitute for financial advice on the asset allocation, which the trustee or a licensed adviser must set.

## How AI may be used

AI may draft the strategy structure from member data and the asset list, but generic boilerplate is what the ATO criticises. The trustee must supply the reasons and a person must check the strategy matches the fund's actual investments.

**AI may:**

- Populate the member table and asset allocation from the asset register and member statements
- Compare the current holdings with the target ranges and flag assets outside range
- Draft a list of review triggers and questions for the trustee to answer

**AI must not:**

- Must not choose the asset allocation or recommend investments
- Must not invent reasons for concentration or insurance decisions that the trustee has not given
- Must not receive member TFNs or health information in a tool whose terms allow training on inputs

**The lawyer checks:**

- Each reg 4.09(2) matter is addressed with fund-specific reasons
- The strategy matches the actual investments and the governing rules
- Insurance was actually considered for each member and the decision recorded

## Authorities

- [Superannuation Industry (Supervision) Act 1993 (Cth) s 52B(2)(f), (g)](https://www.legislation.gov.au/C2004A04633/latest/text)
- [Superannuation Industry (Supervision) Act 1993 (Cth) s 62 (sole purpose test)](https://www.legislation.gov.au/C2004A04633/latest/text)
- [Superannuation Industry (Supervision) Regulations 1994 (Cth) reg 4.09](https://www.legislation.gov.au/F1996B00580/latest/text)
- [Superannuation Industry (Supervision) Regulations 1994 (Cth) regs 4.07D, 4.09A](https://www.legislation.gov.au/F1996B00580/latest/text)
- [Australian Taxation Office, Create your SMSF investment strategy (last updated 2 April 2025)](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/self-managed-super-funds-smsf/setting-up-an-smsf/create-your-smsf-investment-strategy)

## Official form

[Official form](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/self-managed-super-funds-smsf/setting-up-an-smsf/create-your-smsf-investment-strategy)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/superannuation/smsf-investment-strategy and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*