One of the key acknowledgements for self-managed super funds (SMSFs) within Jeremy Cooper’s Super System Review was that they were a successful and well-functioning sector of Australia’s superannuation industry.
In fact, the review’s panel was confident enough in SMSF trustees and their levels of knowledge that it stated:
“The panel does not accept suggestions that the levels of SMSF trustee knowledge are deficient and that compulsory education or other forms of accreditation are required.”
Instead, the panel pointed to raising the minimum competency and knowledge levels of SMSF service providers as its preferred method of trustee education. However, according to the Association of Superannuation Funds of Australia (ASFA), that is not to say that trustee education is unavailable or discouraged.
“ASFA has offered training for SMSF trustees and service providers since 2006, which includes guidance on compliance obligations, taxation, investment, benefits and retirement income streams,” an ASFA spokesperson said. “And any further developments will be reviewed in light of the outcomes of the Stronger Super process.
“However, insofar as SMSFs continue to grow in popularity, one could say that it still is a developing market,” the spokesperson continued. “And the Stronger Super focus to concentrate on the quality of service provider, and in particular the approved auditor, appears to be the favoured approach to increasing trustee knowledge.”
Asked whether ASFA was confident that well-trained and accredited SMSF service providers would lead to well-educated trustees, ASFA’s spokesperson indicated that this, as always, would be reliant upon the individual service provider’s commitment to the professional standards that were in place.
“SMSFs form an important part of the Australian superannuation architecture, and a majority of SMSFs are, in fact, run well,” the spokesperson said. “In the case of the SMSFs advised and/or administered by service providers that are members of ASFA, we are particularly confident that this is the case.
“Involvement in ASFA is, among other things, an indicator of a commitment to professional standards.”
