SMSF Association Media Release
The SMSF Association strongly endorses ASIC’s Consumer Alert warning Australians about the perils of “pushy sales tactics” urging them to switch their superannuation into risky investments.
SMSF Association CEO Peter Burgess says the Consumer Alert is a timely reminder to the industry that as superannuation savings increase they will increasingly attract “nefarious activity” aimed at enticing super fund members to invest their retirement savings into complex and risky schemes.
“From the perspective of our super sector, what’s particularly concerning are high pressure sales tactics and cold calls pressuring people to transfer their superannuation savings into an SMSF with promises of high or unrealistic returns.
“It’s clearly evident that self-interest is driving these schemes which typically involve unlicensed people in the advice process.
“We have never wavered from our belief that SMSFs are not for everyone, and that schemes that typically involve cold calling and investors being ‘sold’ an SMSF with unrealistic return expectations are the antithesis of what our sector stands for – a long-term investment approach using a diversified portfolio with the end goal of achieving a dignified and secure retirement.”
Burgess says establishing an SMSF and taking personal responsibility for your superannuation is a major financial decision that should involve input from an SMSF specialist before embarking on this journey.
“We don’t resile from our mantra that it can be a fulfilling journey for the more than 1.1 million SMSF members who have opted for this retirement income strategy – but only after getting professional advice and considering all the implications.”
The ASIC Alert comes amid the regulator’s increasing concerns that consumers are being enticed to invest their retirement savings into complex and risky schemes, with Deputy Chair Sarah Court urging them to be extra cautious at the beginning of the financial year.