In-specie super transfers booming
Self-managed superannuation fund (SMSF) balances are booming, according to SMSF provider Multiport, which has found in-specie transfers from assets such as listed shares, commercial property and managed funds have increased by as much as 300 per cent recently.
“The number of million-dollar commercial properties and significant share portfolios being rolled into SMSFs has grown dramatically since Christmas,” said Philip La Greca, Multiport’s technical services director.
He attributes this growth to the Budget’s superannuation concessions, which allow an undeducted contribution of up to $1 million before June 30, 2007, with the limited timeframe having a significant impact in prompting people to act.
“It’s almost as if the undeducted limit is a self-fulfilling promise. If they hadn’t put the time limit on it, there wouldn’t have been a rush on it before June 30,” La Greca said.
He believes the number of in-specie transfers will peak in late May, but predicts there will also be those waiting until the last minute to transfer their assets into the superannuation environment.
While pointing out the inherent benefits many people can leverage as a result of the changes, La Greca also expressed some concern that some individuals are seeking to transfer non-superannuation assets into superannuation without being aware of potential pitfalls, such as capital gains tax liabilities.
“Are people aware of those issues — is it the headline or the detail? That’s where the concern is,” La Greca said.
He feels Multiport is particularly well placed to cope with the current popularity of in-specie transfers because its system is “totally online, with an efficient interface with the ASX [Australian Stock Exchange]”.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
