Planners lag on advising SMSFs

The number of self-managed super funds (SMSF) using a financial planner or adviser fell for the eighth consecutive year, according to a report by Vanguard and Investment Trends.

The report, based on a survey of almost 4,000 SMSF trustees and 501 financial advisers found only 36 percen of SMSF trustees used a planner or adviser in the past year.

They also felt they lacked confidence in adviser know-how and could manage their own finances.

Related News:

But the report also noted the number of SMSF trustees seeking advice did not necessarily reflect their need for advice, with 39 per cent of SMSFs saying they had unmet advice needs in areas like pension strategies, building an income stream, and wealth preservation.

Vanguard head of distribution, Michael Lovett, said an opportunity undoubtedly exists for planners and advisers.

"It is incumbent on planners and advisers to demonstrate value above and beyond investment selection, and work towards developing mutually beneficial partnerships," he said.

Most SMSFs intend to go to planners for their unmet advice needs, while 52 per cent were willing to consult an accountant.

SMSF planners were best equipped to cater to SMSF planners in all areas except tax planning.

Meanwhile, planners' revenue from SMSF clients failed to meet targets of 30 per cent, and stood at 21 per cent.

But planners were still aiming for revenue to hit 30 per cent in three years' time.

The research also found 30 per cent of planners wanted product issuers to provide low cost products, while many wanted education and training to help them cater to SMSF clients.

Planners also wanted SMSF clients to be educated on the value of seeking advice.

Recommended for you



Maybe this represents something else, instead of "planners lagging"... for example people using their accountant for financial advice, due to this notion they know what they are doing. Also, the transactions per accountant would be higher, as they dont have to follow any of the rules Advisers do, dont have to produce a soa, follow license standards, etc etc. "hey mr client, you have 2 super funds with $80k total, no worries we can set you up a smsf - at your request of course. The money will be parked in cash, or maybe I can give you some verbal "tips" in relation to the stockmarket, because hey! while im pretending im a Financial Adviser, I will might as well pretend im an investment adviser too"....

Add new comment