SMSF sector's rapid entries and exits
Self-managed superannuation funds (SMSFs) may be the fastest-growing segment of the superannuation industry but there are also high exit levels, according to data provided to the SMSF Professionals' Association of Australia (SPAA) national conference in Melbourne.
ipac superannuation strategist Peter Crump told the conference that 28,800 SMSFs had closed between 2009/10 and the end of 2011/12.
This consisted of 14,800 in 2009/10, 6400 in 2010/11 and 3600 in 2011/12.
Discussing the future of SMSFs after the death of a principal member, Crump said these self-managed funds had closed or ceased to exist for a range of reasons - from Australian Taxation Office action over non-compliance through to members losing interest and the death of a principal member.
However he said the death of a principal member did not need to lead to the closure of a fund.
"Death is not the end of the story," Crump said. "The trust fund exists while property still exists [within the fund]," he said.
He acknowledged, however, that the best way of ensuring the continuation of a fund following the death of the principal member was by having other family covered by the fund - either spouse or children.
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.
