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SMSFs Doubt Adviser Expertise


Lack of confidence in adviser expertise is one of the top barriers to SMSFs seeking advice on their unmet needs, second only to advisers costing too much, according to research.

The “2018 Vanguard/Investment Trends Self-Managed Super Fund Reports” showed 27 per cent of respondents are concerned about the level of expertise of financial planners and accountants, while 30 per cent find advisers cost too much. Over one in 10 SMSFs say they are likely to begin using a new adviser in the next 12 months, with 46 per cent saying they will be seeking SMSF expertise when choosing a new adviser. Investment Trends head of wealth management research Recep Peker told a media briefing in Sydney this week the lack of confidence in the adviser’s expertise matters because it was preventing SMSFs from seeking advice for unmet advice needs. “[This] means ‘I don’t believe the adviser will be able to meet my full needs, all the different needs I have around SMSFs, including tax, investments, estate planning’, and so on,” Peker said. “The flip side of this is for those who are looking for adviser relationships, if you ask them what it is that they’re looking for, the top thing they say ahead of honesty and integrity is SMSF expertise.” The report revealed both planners and accountants servicing SMSF clients are more likely to classify their businesses as a multi-disciplinary practice. The research showed 40 per cent of SMSF specialist accountants are running a multi-disciplinary practice, compared to 33 per cent of all SMSF accountants and 29 per cent of SMSF generalists. Among planners, 31 per cent of SMSF specialists are running multi-disciplinary practices, compared to 26 per cent of SMSF generalists and 28 per cent of all SMSF planners. “What we’re seeing is that accountants and planners are increasingly working together,” Peker said. “Overall we do see that multi-disciplinary practices tend to do better in servicing SMSFs’ needs than those which are just planning specialists or just accounting specialists.” The survey revealed 61 per cent of all SMSF financial planning specialists ran financial planning specialist practices, while 51 per cent of SMSF accounting specialists offered just accounting specialist services.

By Malavika Santhebennur

Self Managed Super

7 June 2018

#Investment #Advice #ASIC #specialist #ATO #smsf #law #lawyer

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