Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

Almost two-thirds of advisers helping establish SMSFs

SMSF/investment-trends/advice/superannuation/

28 June 2022
| By Laura Dew |
image
image image
expand image

Almost two-thirds of advisers are assisting with establishment of self-managed superannuation funds (SMSFs), up from 54% in 2021.

The research firm found establishments of SMSFs had reached a three-year high and advisers were seeking to work closely with accountants, who were the traditional port-of-call for new trustees.

They also welcomed new regulatory measures for SMSFs which included a reduction to the downsizer contribution age limit and the work test exemption as they expected these would alleviate a lot of the operational challenges they faced.

SMSF assets had increased by 15% to $877 billion, a three-year high.

Dougal Guild, research director at Investment Trends, said: “The positive business outlook is consistently shared by most accountants, with nearly half expecting SMSF revenue to increase in the next three years. Interestingly, both SMSF advisers and accountants are looking to strengthen relationships with each other this year to enhance their client value proposition for prospective clients”.

However, SMSF advisers had seen a slight decrease in the share of revenue contributed by SMSFs at 24% down from 27% in 2021 which the firm attributed to rising administration and compliance costs.

Client education and knowledge of SMSFs was also a concern as advisers felt clients was not always aware of their benefits.

“The ability to comprehensively demonstrate a SMSF is in the client’s best interest is a key pain point that advisers felt are holding them back from setting up more SMSFs. Advisers want to feel better equipped to educate current and prospective clients and are calling for content that can help their clients evaluate their own suitability,” said Guild.

Last week, research by Wealth Data found the net SMSF assets per adviser had doubled in three years from $22 million in 2019 to $51 million in 2022.

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 ago

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

4 weeks 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 2 days ago

WT Financial’s Keith Cullen is eager for its Hubco initiative to see advice firms under its licence trade at multiples which are catching up to those UK and US financial ...

3 weeks 6 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 1 day ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND