Self-managed superannuation funds are well placed to help Australians make the most of recent changes to superannuation laws, but advisers to the more than one million members of SMSFs have been challenged to commit to higher standards of professionalism to help cement trust in the advice industry.
In her opening address to the first SMSF Association 2016 National Technical Conference, held in Sydney yesterday, the association’s chief executive officer and managing director Andrea Slattery said the next 12 months “are critical” in developing an advice profession.
“There has never been a more important time for us to work together to build your future,” Slattery said.
She said the SMSF Association represents a “multi-disciplinary profession [and] we have seen what happens within our individual disciplines when we wait for the government to say ‘enough is enough’ and then legislate to protect consumers”.
Slattery said the multi-disciplinary nature of SMSF advice is reflected in the development of professional indemnity insurance for SMSF professionals “that covers your advice and services both inside and outside the [Australian financial services licence] regime, for SMSF and complex tax and retirement advice.
“I continue to challenge you all to design your own future,” Slattery said.
“You are already ahead of the curve and bucking the trend by committing to your professionalism and this is recognised by the government, regulators and higher education institutions.”
Your chance to say ‘I am the best’
Slattery said committing to the SMSFA’s accreditations and qualifications represents “your chance to say ‘I am the best; I have achieved the best independent verification of that through SMSFA’.”
“Your professionalism, skills and knowledge are testimony to what our education program, via our [Specialist Superannuation Adviser] Pathways Program, [Continuing Professional Development] Hub and the CPD Compass can achieve. You are in the driver’s seat to set your own future and become recognised as leaders.”
Slattery said a commitment to professional and education standards is necessary to ensure quality financial services are delivered to the trustees of self-managed super funds. She said SMSFA research indicates there are now 1.1 million trustees, and that the number is growing by about 6000 a month. Most new trustees are aged between 35 and 45.
Slattery said the association’s Trustee Knowledge Centre grew from a belief that better educated trustees would be more likely to seek professional advice. She said it is also a way for association members to educate their own clients.
Self-managed funds well-placed to help
Slattery said that while the SMSF Association supported many of the superannuation measures announced in the budget earlier this year, and self-managed funds are in a good position to help individuals – and couples – make the most of them.
“This is the first time that being a couple genuinely benefits from legislation changes,” she said.
“Think about it. As a couple, the $1.6 million [transfer balance cap] becomes $3.2 million in an SMSF, and you have the ability to contribute post-65 and not work.”
Slattery said the SMSF Association will continue to work closely with government “to help them understand the value and importance of superannuation and the importance of building consumers’ confidence in the system”.
The SMSF Association 2016 National Technical Conference kicked off yesterday in Sydney and moves to Melbourne today, and Brisbane on Thursday. It concludes with events in Adelaide and Perth next week. An estimated 300 SMSF advisers attended the Sydney leg of the conference.
