Industry fund SMSF service could slow member loss
Industry funds can stem the exodus of members into self-managed super funds (SMSF) by providing a mechanism for those members to set up and run their own SMSFs under the guidance and administration of the industry fund, according to industry commentator Deloitte.
Speaking at a superannuation breakfast in Melbourne, Deloitte Private director Robert Jackson said a SMSF could be used by an industry fund member to hold special-purpose assets or assets that wouldn't be found on a platform.
Jackson used the example of a fixed income product, or shares that sit outside the ASX300, as an example of what funds could allow members to place into an SMSF.
Industry funds had the administration and execution capabilities to run a member's SMSF together with their industry fund account, and could even provide consolidated reporting at the end of the financial year, Jackson said.
Members will swallow the cost of setting up an SMSF under the industry fund if they believe they will gain financial benefit by holding special assets, he said.
However, Jackson said regulatory or administration changes might need to be made for industry funds to establish SMSFs.
Anecdotal evidence suggested that 93 per cent of members who get advice end up leaving an industry fund, but that they only reached out for that advice when triggered by a non-super event, Jackson said.
Industry funds have to cater for those events with more general financial planning, he said.
AUTHOR
Staff Writer
Recommended for you
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
The ETF provider has flagged a number of developments as it formally enters the superannuation space through a major acquisition.
While all MySuper products successfully passed the latest performance test, trustee-directed products encountered difficulties.
Iress has appointed Insignia Financial’s former general manager of master trust and insurance products as its newest CEO of superannuation, who will take over from Paul Giles.
