SMSF duties may split into specialist roles

Proposed changes to the regulation of self-managed super funds (SMSFs) could lead to a decrease in the number of SMSF auditors, agents and administrators, according to Multiport chief executive John McIlroy.

He added that if the Government went through with all of its proposed recommendations, SMSF administrators would have no option but to move to a truly independent arrangement for the auditing process.

McIlroy said there were currently around 10,000 SMSF auditors in Australia, many of which did not audit a large number of funds; whereas if all audits had to be performed externally by specialists, there would be a smaller number who did all the work and the standard would be raised.

SMSF administrator Multiport is looking to broaden its offer to appeal more to the accountants who make up around three quarters of SMSF administrators.

So far this year Multiport has added six business development managers — four to recruit accountants, and two working with advisers.

By streamlining the process, Multiport can do all the day-to-day administration internally then outsource the end-of-year tax work to accountants. This would benefit advisers, who would gain ready access to up-to-date information on the SMSFs they administer, and accountants could focus on the accounting side without the extraneous administrative duties of a small number of funds. It would also improve the overall client experience, McIlroy said.

While Multiport has experienced good growth under the one-stop service model, the role of the specialist would make the overall process more efficient and, it is hoped, enable the company to attract more advisers and accountants. It would also satisfy any upcoming regulatory changes by removing potential conflicts of interest, McIlroy said.