There are certain deemed covenants all SMSF trustees are required to abide by that are set up in accordance with trust law and are considered part of every SMSF trust deed, whether they are specifically stated or not.
 Identify the specific section within the SIS Act that outlines these requirements for SMSFs. Once you have identified the appropriate section: 
(i) Outline the two (2) covenants that have specifically been targeted as operating standards for regulated superannuation funds. (ii) State the regulations that apply to these standards. 
(iii) State the SMSF administrative penalty that can be imposed for failing to meet these standards.


 student correctly identifies some relevant legislative provisions and definitions • student correctly identifies one covenant that has been targeted for operating standards of regulated superannuation funds and states the penalties and regulations that apply • student correctly outlines some of the obligations of the trustee