Government Superannuation Advice Reform to Grow SMSF's

Brisbane, QLD, 13 May 2010: The Minister for Superannuation, Chris Bowen has announced broad ranging reforms to the financial advice sector doing away with commissions on superannuation fund products.

According to Christian Tapia, leading local SMSF adviser from RBS Morgans Capalaba, “Unlike retail or industry based superannuation funds, SMSFs are not sold to clients. Instead SMSFs are vehicles where members of the fund as trustees have choice and control over their superannuation. This means no product provider paying commissions as the SMSF provider is the members themselves.”

The requirement for superannuation advice to be fee for service and not commission based is a windfall for SMSFs and will see five significant changes to the SMSF industry:

  1. Focus the spotlight on SMSF advisers as the only true – across the board see for service advisors in the superannuation industry.
  2. See the switch by many financial planners of clients from retail superannuation funds to SMSFs as they transition their business to fee for service.
  3. Increase the knowledge of all participants in the SMSF sector including SMSF advisers, auditors and trustees.
  4. Accelerate the growth in SMSF assets from $400 billion in 2010 to $650 billion by 1 July 2012 - the commencement date of the financial services reforms.
  5. See experienced SMSF advisers to be much in demand and importantly Christian said “Our firm has a long history of delivering value added strategies to our SMSF clients. The financial services overhaul announced by Chris Bowen will provide our firm and our SMSF clients with some unique growth opportunities.”
For more information on this topic see this post ==> SMSF Explained

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