AXA releases details of SMSF tool

AXA has revealed the features of its self-managed superannuation fund (SMSF) service, which was announced earlier this month, as financial advisers begin to take over from accountants in setting up SMSFs.

AXA general manager, sales and marketing, Adrian Emery said Australians had a large appetite for SMSFs and many were turning to advisers for assistance.

Emery said AXA’s research showed some people who set up SMSFs abandoned them after falling foul of regulations because they did not have ongoing financial advice or because the administration was too complicated.

He said the SMSF service, called AXcess self-managed super, was designed for financial advisers and would simplify administration through features such as daily reporting of SMSF breaches and proactive updates to trust deeds.

AXA head of superannuation and retirement incomes Andrew Barnett said the service had been piloted over the past few months by a group of SMSF accredited advisers.

“This pilot, coupled with the in-depth research, due diligence and review process that was undertaken as part of the development of AXcess self-managed super, positions this service as a leader in the SMSF market and addresses the unmet needs of both advisers and clients,” he said.

Through the pilot, around 500 funds with a total of $250 million in funds under management are currently being administered through the service.

Barnett said there was also close to $20 million in the pipeline following road shows last week to launch the service to advisers.

Emery said the service would be available to users of AXA’s platforms, Summit and Generations, who were accredited to offer SMSF advice.

He said fees were competitive for account balances above $250,000, but were less competitive below that sum to discourage initiation of SMSFs with balances considered too small to be a viable proposition.

He said annual administration fees for the service were between $2,350 and $3,550.