SMSF practices under scrutiny
Nick Sherry
The Federal Government has expressed concerns over self-managed superannuation fund (SMSF) practices, which it believes can employ aggressive marketing strategies to persuade individuals to establish a SMSF without proper guidance.
The Minister for Superannuation and Corporate Law, Senator Nick Sherry, has announced that the Government has commenced consultation with a range of industry organisations to discuss practices in SMSFs.
Sherry said the Government needed to ensure appropriate governance was in place given the significant growth in the sector, now with more than 368,000 entities, over 700,000 members and almost $300 billion in assets.
“The Government is concerned where individuals are subject to aggressive marketing strategies and persuaded to establish a SMSF without being aware of their role and responsibilities and without appreciating the costs involved,” he said.
“This concern is not directed at any particular segment providing advice to the SMSF market.”
Sherry said the Government was closely monitoring developments in the SMSF sector to ensure trustees were aware of the risks involved and provided the skills necessary to run a super fund.
The minister is scheduled to speak on this matter at the SMSF Professionals’ Association of Australia (SPAA) National Conference in March.
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