Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

SMSFs could be drawn into Royal Commission

smsf-association/Royal-Commission/Andrew-Gale/

14 February 2018
| By Mike |
image
image image
expand image

The SMSF Association has warned that self-managed superannuation funds may get dragged into the Royal Commission into misconduct in the banking, superannuation and financial services industry as industry funds seek to deflect attention.

Out-going SMSF Association chairman, Andrew Gale told the organisation’s national conference that although the terms of reference of the Royal Commission excluded SMSFs, there remained the potential for our sector to be included in the work of the inquiry via three key avenues:

  • The Advice and conduct issues of Australian Financial Services Licensees are included specifically in the terms of reference, and this could include SMSF advice and recommendations to establish an SMSF.
  • Secondly, with large superannuation funds included in the terms of reference and under scrutiny, we expect the large fund sector, especially industry funds, to seek to deflect attention by pointing out issues with SMSFs. Issues raised could include minimum reasonable account balance sizes for SMSFs and Limited Recourse Borrowing Arrangements.
  • Finally, there is a small possibility that the terms of reference of the Royal Commission are expanded to include SMSFs or related fields.

“On a positive note, it’s worth noting that prior enquiries into superannuation have found the SMSF sector to be functionally well with a high level of compliance,” Gale said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

3 weeks 3 days ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

1 month ago

So we are now underwriting criminal scams?...

7 months ago

After last month’s surprise hold, the Reserve Bank of Australia has announced its latest interest rate decision....

3 weeks 5 days ago

While the profession continues to see consolidation at the top, Adviser Ratings has compared the business models of Insignia and Entireti and how they are shaping the pro...

1 week 3 days ago

The inquiry into the collapse of Dixon Advisory and broader wealth management companies by the Senate economics references committee will not be re-adopted. ...

1 week 2 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND