New SMSF product drives price down

A new self-managed superannuation fund solution launched by independent superannuation administrator, Heffron, is putting pressure on financial services giants such as AMP to rethink their pricing.

Heffron’s SMSF Administration Outsourcing package, which is targeted at accountants, is up to 30 per cent cheaper than comparable solutions in the market, including AMP’s Multiport SMSF Annual Service and Multiport Daily Extra.

Heffron charges $1650 per annum per fund for financial statements, member statements, a draft tax return, calculation of annual pension amounts and an independent audit. The Multiport Daily Extra service costs $1920 per year for an SMSF with a $250,000-account balance.

It is understood Multiport’s SMSF Annual Service costs around $2340.

Ben Smythe, Heffron director of sales and marketing, said competition in the SMSF accounting/compliance space was heating up as SMSF trustees started to demand better value and greater levels of support and interaction.

He said accountants and financial planners were also looking for more efficient and cost-effective ways of managing their clients’ SMSFs.

“New players are entering the space every week and SMSF trustees are being bombarded with advertisements about the latest SMSF administration solutions every time they turn on their computer or television,” Smythe said.

“The retention of SMSF clients via a shoe box-style, year-end service is getting harder for accountants and clients will no longer pay thousands of dollars for what they essentially see as a commoditised service.”

AMP managing director Craig Dunn is expected to provide an update on the group’s AMP SMSF division at its 2013 half-year result presentation on Thursday. AMP launched AMP SMSF in mid-2012. The division has a range of brands including Multiport, which AMP inherited through its 2011 merger with AXA Asia Pacific, and Cavendish Group, which AMP acquired in mid-2012. AMP SMSF also includes SuperIQ and Ascend Self-Managed Super.