Accountants not pushing SMSFs: Liz Westover
The idea that self-managed superannuation funds (SMSFs) tend to be pushed on clients by accountants is more of a perception than a reality, says Institute of Chartered Accountants in Australia (ICA) head of superannuation Liz Westover.
The wording of the accountant's exemption only covers the set-up and closure of SMSFs, so the perception is that "if that's all they can talk about, that must be what they're recommending", said Westover.
"I talk to a lot of [ICA] members about this, and they tell me they will always act in the client's best interest," she added.
Many clients have already made their mind up to establish an SMSF by the time they talk to their accountant, Westover said.
"You'd be surprised how many times I've had clients come to me having already made the decision to set up an SMSF. It wasn't a recommendation by me. They say: 'I want to set up an SMSF - can you help me do it?'" she said.
Under the current legal framework, accountants are not authorised to advise against the set up of an SMSF if they think it is inappropriate for the client, Westover added.
"It would have been very difficult for me if I knew it was not appropriate for them," she said.
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