SMSF Association Media Release
ASIC’s latest Review of SMSF Establishment Advice (Report 824) serves as a critical reminder of the need for the SMSF sector to maintain a strong focus on professional advice standards, says SMSF Association CEO Peter Burgess.
The report, reinforces the importance of all consumers having access to competent, specialist advice when considering whether to establish an SMSF. Burgess cautions, however, that the findings should be viewed in context.
“It’s important to recognise that ASIC’s review was based on a targeted, risk-based sample of advice files, not a random selection” Burgess said.
“The advice files examined situations were, on face value, the establishment of an SMSF appeared to be unsuitable for the client. As such, the findings are not representative of the broader quality of SMSF advice currently being provided across the sector and this perspective is important.
Burgess also noted the subjective nature of assessing whether a consumer is, or will be, worse off as a result of the advice provided, particularly when evaluating long-term retirement outcomes.
“Nonetheless, the review highlights that more work is needed to ensure all consumers have access to competent, high-quality advice when making decisions about SMSFs.”
The Association strongly supports ASIC’s previous commentary that providing SMSF advice is a specialist area of practice, requiring appropriate competencies. Burgess says.
“Advisers must have the knowledge, skill, and technical competencies to provide SMSF advice confidently and responsibly.”
“We strongly encourage all professionals in this space to undertake the Association’s independent accreditation program and commit to ongoing professional development to maintain their competence over time.”
The Association also reiterated that SMSFs were not suitable for everyone and that establishing an SMSF is a significant decision requiring informed and impartial guidance.
As the sector continues to grow, now representing nearly a quarter of Australia’s $4.3 trillion superannuation system, access to consistent, high-quality and ethical advice has never been more crucial,” Burgess said.
Burgess concludes, “Our focus remains on ensuring consumers can make confident, informed decisions about their retirement savings, supported by advisers who uphold the highest professional and ethical standards – and the findings of this report only strengthen our resolve.”